Profit-Sharing – A Tool for Improving Productivity, Profitability and Competitiveness of Firms?
TL;DR: In this article, a comprehensive and up-to-date review of the relevant literature is provided, under-researched areas are identified and suggestions for further research are given.
Abstract: The importance of appropriate utilization of rewards for performance is still growing and there- fore this type of rewards can be seen as a significant part of a total rewards package. Compa- nies that are able to appropriately implement rewards for performance may gain competitive advantage over their competitors, but successful implementation requires a good knowledge of these rewards. The main aim of this paper is to contribute to the growth of this knowledge by identifying possible positive and negative impacts of profit-sharing on various areas that are important for the performance of a company, nevertheless, addressed are also macroeconomic consequences of profit-sharing. Furthermore, a comprehensive and up-to-date review of the relevant literature is provided, under-researched areas are identified and suggestions for further research are given. To accomplish these goals, we applied methods of bibliometric analysis to the articles indexed in ISI Web of Knowledge to identify the most important articles, authors and topics. According to our findings, the majority of studies report a neutral or positive impact of profit-sharing on productivity and profitability. This impact may be achieved by direct influence of profit-sharing on productivity of employees (due to the dependence of their pay on profit), but it seems that yet more important are various mediating mechanisms, especially effects on employment stability, absenteeism, quits and related issues, as well as effects on attitudes of em- ployees and on relationships between employees. We argue that a well-designed profit-sharing plan is crucial for its success, but it is a relatively under-researched problem.
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TL;DR: An overview is given of the state-of-the-art research into secure communication based on quantum cryptography, together with its assumptions, strengths and weaknesses.
Abstract: An overview is given of the state-of-the-art research into secure communication based on quantum cryptography. The present security model together with its assumptions, strengths and weaknesses is discussed. Recent experimental progress and remaining challenges are surveyed as are the latest developments in quantum hacking and countermeasures.
1,052 citations
TL;DR: In this article, the authors revisited the concept of squeezed states and two-mode squeezed states of light, with a focus on experimental observations, and the distinct properties of the two modes of light displayed in quadrature phase-space as well as in the photon number representation are described.
341 citations
TL;DR: In this paper, an integrated space-to-ground quantum communication network that combines a large-scale fibre network of more than 700 QKD links and two high-speed satellite-toground free-space QKDs is presented.
Abstract: Quantum key distribution (QKD)1,2 has the potential to enable secure communication and information transfer3. In the laboratory, the feasibility of point-to-point QKD is evident from the early proof-of-concept demonstration in the laboratory over 32 centimetres4; this distance was later extended to the 100-kilometre scale5,6 with decoy-state QKD and more recently to the 500-kilometre scale7-10 with measurement-device-independent QKD. Several small-scale QKD networks have also been tested outside the laboratory11-14. However, a global QKD network requires a practically (not just theoretically) secure and reliable QKD network that can be used by a large number of users distributed over a wide area15. Quantum repeaters16,17 could in principle provide a viable option for such a global network, but they cannot be deployed using current technology18. Here we demonstrate an integrated space-to-ground quantum communication network that combines a large-scale fibre network of more than 700 fibre QKD links and two high-speed satellite-to-ground free-space QKD links. Using a trusted relay structure, the fibre network on the ground covers more than 2,000 kilometres, provides practical security against the imperfections of realistic devices, and maintains long-term reliability and stability. The satellite-to-ground QKD achieves an average secret-key rate of 47.8 kilobits per second for a typical satellite pass-more than 40 times higher than achieved previously. Moreover, its channel loss is comparable to that between a geostationary satellite and the ground, making the construction of more versatile and ultralong quantum links via geosynchronous satellites feasible. Finally, by integrating the fibre and free-space QKD links, the QKD network is extended to a remote node more than 2,600 kilometres away, enabling any user in the network to communicate with any other, up to a total distance of 4,600 kilometres.
289 citations
TL;DR: A demonstration of quantum key distribution (QKD) over a standard telecom fiber exceeding 50 dB in loss and 250 km in length is reported, with careful optimization of the 1 bit delayed Faraday-Michelson interferometer and the use of the superconducting single photon detector (SSPD).
Abstract: We report a demonstration of quantum key distribution (QKD) over a standard telecom fiber exceeding 50 dB in loss and 250 km in length. The differential phase shift QKD protocol was chosen and implemented with a 2 GHz system clock rate. By careful optimization of the 1 bit delayed Faraday–Michelson interferometer and the use of the superconducting single photon detector (SSPD), we achieved a quantum bit error rate below 2% when the fiber length was no more than 205 km, and of 3.45% for a 260 km fiber with 52.9 dB loss. We also improved the quantum efficiency of SSPD to obtain a high key rate for 50 km length.
238 citations
TL;DR: This paper reports long-distance quantum key distribution (QKD) by using state-of-the-art devices: a quantum-dot SPS (QD SPS) emitting a photon in the telecom band of 1.5 μm and a superconducting nanowire SPD (SNSPD), which achieves the maximal secure key rate without using decoy states.
Abstract: Advances in single-photon sources (SPSs) and single-photon detectors (SPDs) promise unique applications in the field of quantum information technology. In this paper, we report long-distance quantum key distribution (QKD) by using state-of-the-art devices: a quantum-dot SPS (QD SPS) emitting a photon in the telecom band of 1.5 μm and a superconducting nanowire SPD (SNSPD). At the distance of 100 km, we obtained the maximal secure key rate of 27.6 bps without using decoy states, which is at least threefold larger than the rate obtained in the previously reported 50-km-long QKD experiment. We also succeeded in transmitting secure keys at the rate of 0.307 bps over 120 km. This is the longest QKD distance yet reported by using known true SPSs. The ultralow multiphoton emissions of our SPS and ultralow dark count of the SNSPD contributed to this result. The experimental results demonstrate the potential applicability of QD SPSs to practical telecom QKD networks.
171 citations
References
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TL;DR: The free-rider effects would seem to choke off the free-riders in organizations of any significant size as mentioned in this paper, which is why cooperation and profit sharing are often claimed to motivate workers by giving them a share of the pie.
Abstract: Partnerships and profit sharing are often claimed to motivate workers by giving them a share of the pie. But in organizations of any significant size, the free-rider effects would seem to choke off...
1,805 citations
"Profit-Sharing – A Tool for Improvi..." refers background in this paper
...The most influential work on this topic, which serves as a starting point or at least as a point of reference of other articles, is (Kandel & Lazear, 1992), where is deployed a formalized model to analyze free riding....
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...Definitely, central both from the viewpoint of number of its citations (375) and frequency of co-citations with other articles is paper by Kandel and Lazear (1992), which dealt with overcoming the problem of free-rider and is a cornerstone of other articles on this topic (see also chapter 5.4)....
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Journal Article•
695 citations
"Profit-Sharing – A Tool for Improvi..." refers background in this paper
...What is important from the viewpoint of our paper is that Kohn (who is a fierce opponent of incentives) explicitly expressed an opinion that he had no objections against profit-sharing (Kohn, 1993b, p. 49)....
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...This goes especially for tangible rewards for performance and in this regard we can mention highly cited article “Why incentive plans cannot work” by Kohn (1993a), where Kohn expressed very negative attitude toward incentives and consequently was criticized by numerous proponents of…...
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Posted Content•
TL;DR: This paper used CPS data from 1964 to 1985 to test for the existence of rent-sharing in US tabor markets, using an unbalanced panel from the manufacturing sector, and random effects and fixed-effects specifications, finding that changes in wages are explained by movements in lagged levels of profitability and unemployment.
Abstract: The paper uses CPS data from 1964 to 1985 to test for the existence of rent-sharing in US tabor markets, Using an unbalanced panel from the manufacturing sector, and random-effects and fixed-effects specifications, the paper finds that changes in wages are explained by movements in lagged levels of profitability and unemployment. The results appear to be consistent with rent-sharing theory (or a labor contract framework with risk-averse firms) and to be inconsistent with the competitive labor market model. The paper estimates the unemployment elasticity of pay at approximately -0.03, and the profit elasticity of pay at between 0.02 and 0.05.
495 citations
"Profit-Sharing – A Tool for Improvi..." refers background in this paper
...Article by Blanchflower, Oswald, and Sanfey (1996) addressed a specific topic – an idea that a rise in a sector’s profitability after some time leads to a rise in the long-run level of wages in that sector....
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TL;DR: In this paper, the authors used data from 41 steel production lines to assess the effects of Japanese and U.S. human resource management (HRM) practices on worker productivity.
Abstract: This study uses personally collected data from 41 steel production lines to assess the effects of Japanese and U.S. human resource management (HRM) practices on worker productivity. The Japanese production lines employ a common system of HRM practices including: problem-solving teams, extensive orientation, training throughout employees' careers, extensive information sharing, rotation across jobs, employment security, and profit sharing. A majority of U.S. plants now have one or two features of this system of HRM practices, but only a minority have a comprehensive system of innovative work practices that parallels the full system of practices found among the Japanese manufacturers. We find that the Japanese lines are significantly more productive than the U.S. lines. However, U.S. manufacturers that have adopted a full system of innovative HRM practices patterned after the Japanese system achieve levels of productivity and quality equal to the performance of the Japanese manufacturers. This study's evidence helps reconcile conflicting views about the effectiveness of adopting Japanese-style worker involvement schemes in the United States. United States manufacturers that have adopted a definition of employee participation that extends only to problem-solving teams or information sharing do not see large improvements in productivity. However, U.S. manufacturers that adopt a broader definition of participation that mimics the full Japanese HRM system see substantial performance gains.
464 citations
"Profit-Sharing – A Tool for Improvi..." refers background in this paper
...Ichniowski and Shaw (1999) addressed a topic of simultaneous utilization of profit-sharing and other human resource practices (problem-solving teams, extensive orientation, training throughout employees’ careers, extensive information sharing, rotation across jobs and employment security) and…...
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Journal Article•
TL;DR: In this article, the authors present an experimental examination of a variety of group incentive programs, including simple revenue sharing and more sophisticated, target-based systems such as profit sharing or productivity gainsharing, as well as tournament-based and monitoring schemes.
Abstract: This paper presents an experimental examination of a variety of group incentive programs. We investigate simple revenue sharing and more sophisticated, targetbased systems such as profit sharing or productivity gainsharing, as well as tournament-based and monitoring schemes. Our results can be characterized by three facts: (I) history matters; how a group performs in one incentive scheme depends on its history together under the scheme that preceded it; (2) relative performance schemes outperform target-based schemes; and (3) monitoring can elicit high effort from workers, but the probability of monitoring must be high and, therefore, costly. (JEL J33, C92)
424 citations