Endnotes

2. An example is a recent Wall Street Journal article on how big data is being used to assist with hiring decisions. http://online.wsj.com/article/SB10000872396390443890304578006252019616768.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird.

3. http://www.marketplace.org/topics/business/added-value-autistic-employees.

4. Arrow, K. (1980). “Discrimination in the Labour Market,” in J. E. King (ed.): Readings in Labour Economics. Oxford: Oxford University Press. Stigler, George. (1981). “Economics or ethics?” in S. McMurrin (ed.), Tanner Lectures on Human Values, Cambridge: Cambridge University Press. Williamson, Oliver. (1985). The Economic Institutions of Capitalism. New York: Free Press.

5. By far, the best way to overview the work of Fehr and others on these and other related topics is to go to Social Science Research Network. You can find much of his work there: http://papers.ssrn.com/sol3/results.cfm.

6. Kasparov, G. 2010 (February 11). “The Chess Master and the Computer,” New York Review of Books.

2. Others books that arrive at much the same conclusions include Richard Thaler and Cass Sunstein’s book Nudge, 2009, London: Penguin Books; Robyn Dawes’s Everyday Irrationality, 2001, Oxford: Westview Press; and Dan Ariely’s Predictably Irrational, 2008, New York: HarperCollins.

3. Tversky, A. and Kahneman, D. (1981). “The Framing of Decisions and the Psychology of Choice,” Science, 211, 453–458.

4. I would argue that the fight regarding whether effective human capital management impacts performance has been long won. See the work of Jac-Fitz Enz, Brian Becker, Mark Huselid, Casey Ichniowski, Ann Bartel, Katherine Shaw, and many others.

5. An excellent overview of the arguments is found in a book review by Philip Tetlock and Barbara Mellers in the January 2002 issue of the Psychological Science Journal 13(1), 94–99. The review is of the book Choice, Values and Frames, edited by Daniel Kahneman and Amos Tversky.

6. Kahneman, D. (2011). Thinking, Fast and Slow. New York: Farrar, Straus and Giroux. 212. The entire book deals with factors that influence our tendency to act rationally.

7. If you are interested, you can find much of this work at Social Science Research Network’s ssrn.com, which is an excellent source of research.

8. Principal-agent theory states that there are owners and nonowners in firms. The owners incur costs in the form of incentive contracts to align the interests of the two parties. The incentive contracts themselves consist of a combination of formal monitors, substitutes for monitors, and direct incentives. Two issues that quickly surface with broad-based stock options are the free-rider and the line-of-sight problems. The free-rider problem argues that those receiving group incentives such as stock options will always be subject to “free riding” on the effort of others. The second is the line-of-sight problem, which is if your effort does not have a direct and obvious impact on the reward, there will be little incentive to focus on it. These two factors would suggest granting stock options to nonexecutives will have no material impact on performance.

9. In all of our research, we found a positive impact on performance associated with the granting of stock options broadly. However, in one of our last papers (July 2011, Sesil and Peng-Lin, Industrial Relations), we found that the impact of broad-based stock options was short-lived.

10. You can find a large amount of research on ownership culture and a variety of other research on employee ownership at the National Center for Employee Ownership. http://www.nceo.org/.

11. An interview with Thomas H. Davenport. July 2010, “Are You Ready to Reengineer Your Decision Making?.”

12. Kahneman, D. (2011). Thinking, Fast and Slow. New York: Farrar, Straus and Giroux. 21.

13. Ibid. 22.

14. Blasi, J., Kruse, D., and Bernstein, A. (2003). In the Company of Owners: The Truth About Stock Options. New York: Basic Books.

15. Ibid.

16. Ibid. 5.

17. http://www.nytimes.com/2007/12/09/magazine/09wwln-idealab-t.html?_r=0.

18. You can find a more detailed explanation of each of these in Daniel Kahneman’s Thinking, Fast and Slow. (2011). New York: Farrar, Straus and Giroux.

19. Thaler, R. H. and Sunstein, C. R. (2009.) Nudge: Improving Decisions About Health, Wealth and Happiness. New York: Penguin Books. 7.

20. Schoemaker, P. and Russo, J. “Managing Frames to Make Better Decisions,” in Hoch, S. J., Kunreuther, H. C., and Gunther, R. E. (eds.). (2001). Wharton on Making Decisions. Hoboken, NJ: John Wiley & Sons, Inc. 131–155.

21. Ibid. 132–133.

22. http://en.wikipedia.org/wiki/Template:Quantities_of_bytes.

23. Zikopouloa, C., Eaton, C., deRoos, D., Deutsch, T., and Lapis, G. (2012). Understanding Big Data: Analytics for Enterprise Class Hadoop and Streaming Data. New York: McGraw Hill.

24. Rayer, N. (October 7, 2011). “Maverick Research: Judgment Day, or Why We Should Let Machines Automate Decision Making.” Gartner Research Note. Gartner, Inc.

25. “Connecting the Neural Dots,” (Tuesday, February 26, 2013), New York Times, Science Times section.

26. The articles can be found in the April 2011 issue of Behavioral and Brain Sciences, 34, 57–111.

27. Tetlock, P. (2005). Expert Political Judgment: How Good Is It? Princeton, NJ: Princeton University Press.

28. Klein, G. (2009). Streetlights and Shadows: Searching for the Keys to Adaptive Decision Making. Cambridge, MA: MIT Press. 125.

29. Hoch, S. J. and Kunreuther, H. C. (2001). “A Complex Web of Decisions,” in Hoch, S. J., Kunreuther, H. C., and Gunther, R. E. (eds.). (2001). Wharton on Making Decisions. Hoboken, NJ: John Wiley & Sons, Inc.

30. Sallam, R. L. and Cearley, D. W. (February 16, 2012). “Advanced Analytics: Predictive, Collaborative and Pervasive.” Gartner Research Note. Gartner Inc.

31. Ibid.

32. There is excellent work on this topic by, for example, Jac Fitz-Enz, The New HR Analytics and The ROI of Human Capital. Also by John Boudreau, Retooling HR and (with Peter Ramstad) Beyond HR.

33. Sallam, R. L. and Cearley, D. W. (February 16, 2012). “Advanced Analytics: Predictive, Collaborative and Pervasive.” Gartner Research Note. Gartner Inc.

34. IBM Global Business Services. (2010). “Working Beyond Borders.” The survey is based on interviews with 700 chief human resource managers.

35. Ibid. 2.

36. Ibid.

37. The formula was developed by John Tierney, the New York Times journalist and author, and Garth Sundem, self-proclaimed math geek and author. The formula was found in John Tierney’s March 13 New York Times article “Refining the Formula That Predicts Celebrity Marriages’ Doom,” in the Science Times section.

38. Dawes, R. M. (1979). The robust beauty of improper linear models in decision making. American Psychologist, 34(7), 571–582.

39. Ayres, I. (2007). Super Crunchers: Why Thinking-by-Numbers Is the New Way to Be Smart. New York: Random House.

40. Power, D. J. (2002). Decision Support Systems: Concepts and Resources for Managers. Westport, CT and London: Quorum Books. 157.

41. Kahneman, D. (2011). Thinking, Fast and Slow. New York: Farrar, Straus and Giroux. 227.

42. Hoch, S. J. (2001). “Combining Models with Intuition,” in Hoch, S. J., Kunreuther, H. C., and Gunther, R. E. (eds.). (2001). Wharton on Making Decisions. Hoboken, NJ: John Wiley & Sons, Inc.

43. Ibid. 100–101.

44. Yaser S. Abu-Mostafa. (July 2012). “Machines That Think for Themselves: New Techniques for Teaching Computers How to Learn Are Beating the Experts,” Scientific American, 78.

45. Ibid.

46. Rayer, N. (October 7, 2011). “Maverick Research: Judgment Day, or Why We Should Let Machines Automate Decision Making.” Gartner Research Note. Gartner, Inc.

47. Kasparov, G. (February 11, 2010). “The Chess Master and the Computer,” New York Review of Books.

48. Iervilino, C. (February 17, 2012). “How to Leverage Advanced Analytics for Strategy Maps.” Gartner Research, Gartner, 2012.

2. Berkes, H. (February 6, 2012). Remembering Roger Boisjoly: He Tried to Stop Shuttle Challenger Launch. National Public Radio Two Way Blog, Obituaries.

3. Ibid.

4. Davenport, T. H. (May 2012). “The Wisdom of Your In-House Crowd,” Harvard Business Review.

5. Nowak, M. A. (December 8, 2006). “Five Rules for the Evolution of Cooperation,” Science, 314. 1563.

6. Arrow, Kenneth. (1980). “Discrimination in the Labour Market,” in J. E. King (ed.): Readings in Labour Economics. Oxford: Oxford University Press. Stigler, George. (1981). “Economics or ethics?” in S. McMurrin (ed.), Tanner Lectures on Human Values, Cambridge: Cambridge University Press. Williamson, Oliver. (1985). The Economic Institutions of Capitalism. New York: Free Press.

7. By far, the best way to overview the work of Fehr and others on these and other related topics is to go to Social Science Research Network. You can find much of his work there. http://papers.ssrn.com/sol3/results.cfm.

8. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=717081.

9. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1090311.

10. The movie came out in 2001 and stared Russell Crowe and Jennifer Donnelly and was directed by Ron Howard. The movie is based on the book by the same name written by Sylvia Nasar and published in 1998.

11. E. O. Wilson, the Harvard evolutionary biologist who received the Pulitzer Prize for nonfiction for his book and is considered to be the founder of sociobiology.

12. Hopkins, M. (March 2010). “An Interview with Thomas W. Malone: A Billion Brains Are Better Than One,” MIT Sloan Management Review.

13. Dean, L., Kendal, R., Schapiro, S., Thierry, B., and Laland, K. (March 2, 2012). “Identification of the Social and Cognitive Processes Underlying Human Cumulative Culture,” Science.

14. Rozwell, C. (May 1, 2009). “Socialization of Knowledge Management Drives Greater Reuse.” Gartner Research Note. Gartner, Inc.

15. Logan, D. (May 8, 2009). “Content Management Plus Organization Equals Knowledge Management.” Gartner Research, Gartner Inc.

16. Shafei, F., Sundaram, D., and Piramuthu, S. (2012). “Multi-enterprise collaborative decision support system,” Expert System with Application, 39, 7637–7651. This article has a focus more generally on the use of collaborative software in order to obtain information from external sources such as from customers and clients.

17. Thaler, R. and Sunstein, C. (2008). Nudge: Improving Decisions About Health, Wealth and Happiness. London: Penguin Books. In their books, they advance the notion of libertarian paternalism, which consists of the government steering us in the direction of better choices but in a manner that preserves freedom of choice.

18. Abele, J. (July-August 2011). “Bringing Minds Together,” Harvard Business Review.

19. https://workfamily.sas.upenn.edu/sites/workfamily.sas.upenn.edu/files/imported/pdfs/SASwharton.pdf.

20. Davenport, T. H. (May 2012). “The Wisdom of Your In-House Crowd,” Harvard Business Review.

21. Abele, J. (July-August 2011). “Bringing Minds Together,” Harvard Business Review.

22. Ibid. 89.

23. Gilbert, M., Shegda, K., Chin, K., and Gavin, T. (October 13, 2011). “Magic Quadrant for Enterprise Content Management.” Gartner Research, Gartner, Inc.

24. Ibid.

25. Sallam, R. (September 1, 2011). “Who’s Who in Collaborative Decision Making.” Gartner Research Note. Gartner, Inc.

26. Ibid.

2. http://www.businessweek.com/articles/2013-05-06/employers-love-wellness-programs-dot-but-do-they-work#r=hp-lst.

3. Lev’s 2001 book Intangibles Management, Measurement, and Reporting (Washington D.C.: Brookings Institution Press) is an excellent overview of the role of intangibles and how to measure. An additional work is Unseen Wealth: Report of the Brookings Task Force on Intangibles, by Margaret M. Blair and Steven M. H. Wallman (Washington D.C.: Brookings Institution Press, 2001).

4. Ibid.

5. You can find a good discussion and overview of organizational capital in Lev and Radhakrishnana’s (2003) “The Measurement of Firm-Specific Organizational Capital.” NBER Working Paper # 9581.

6. Evenson, R. E. and Westphal, L. E. (1995). “Technological Change and Technological Strategy,” in Behrman, J. and Srinivasan, T. N. (eds.), Handbook of Development Economics 3e. Amsterdam: North Holland, 2209–29.

7. Jovanovic, B. (1979). “Firm-Specific Capital and Turnover,” The Journal of Political Economy, 87(6), 1246–60.

8. Rosen, S. (1972). “Learning by Experience as Joint Production,” The Quarterly Journal of Economics, 86(3), 366–82.

9. Lin, Y. P. and Sesil, J. C. (July 2011). British Journal of Industrial Relations, 49(52), s402–s416.

10. Noe, R. A., Hollenbeck, J. R., Gerhart, B., and Wright, P. M. (2010). Human Resource Management: Gaining a Competitive Advantage 7e. New York: McGraw-Hill Irwin. 75.

11. Kaufman, B. K. and Miller, B. I. (April 2011). “The Firm’s Choice of HRM Practice: Economics meets strategic human resource management,” Industrial and Labor Relations Review, 64, 528.

12. Ibid.

13. Ibid. 526.

14. Ibid.

15. Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., and Martin, K. (2012). An Introduction to Management Science: Quantitative Approaches to Decision Making. Mason, OH: South-Western Cenage Learning.

16. The terms management science and operation research are currently considered interchangeable with decision science according to Anderson et.al., 2012.

17. Iervolino, C. (February 17, 2012). “How to Leverage Advanced Analytics for Strategy Maps.” Research Note. Gartner, Inc.

18. This information was largely found in the IBM’s Solution Brief “Business Analytics and Optimization–CFO performance dashboard–Advanced Edition,” December, 2011. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&infosubt=SP&htmlfid=gbs03077usen&appname.

19. In particular, the work of Casey Ichniowski, Kathryn Shaw, and Ann Bartel provides strong evidence of the impact of effective human capital management on organizational success.

20. Iervolino, C. (February 17, 2012). “How to Leverage Advanced Analytics for Strategy Maps.” Gartner Research Notes, Gartner, Inc.

21. Evelson B. and Schooley, C. (November 7, 2011). “Use of HR Analytics to Optimize Talent Processes.” Forrester Research Inc. Cambridge, MA.

22. Holincheck, J., Otter, T., and Freyermth, J. (February 29, 2012). Agenda for ERP and Enterprise Suites for Human Capital Management 2012.

23. There is sophisticated statistical analysis software used to analyze time series data. For example, STATA.

24. See SAS Talent Scorecard. http://www.sas.com/solutions/hci/hcscorecard/index.html#section=1.

25. Much good work on intangible capital has been done by Baruch Lev and can be found in his 2001 book Intangibles Management, Measurement, and Reporting (Washington D.C.: Brookings Institution Press).

26. Kaplan, R. S. and Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Boston: Harvard Business School Publishing.

27. Holincheck, J. (May 10, 2011). “The Talent Management Suite Market Emerges.” Gartner Research Note, Gartner, Inc.

28. Holincheck, J. (May 10, 2011). “The Talent Management Suite Market Emerges.” Gartner Research Note, Gartner, Inc.

2. http://www.oecd.org/employment/emp/40937574.pdf.

3. http://www.npr.org/blogs/health/2013/04/22/177452578/young-adults-with-autism-can-thrive-in-high-tech-jobs.

4. This article in the New York Times is an excellent source of information on the use of big data and sophisticated analytics to assist with selection decisions. http://www.nytimes.com/2013/04/28/technology/how-big-data-is-playing-recruiter-for-specialized-workers.html?smid=fb-nytimes&WT.z_sma=TE_HBD_20130429&_r=0.

5. Ibid.

6. http://www.nytimes.com/2013/04/21/technology/big-data-trying-to-build-better-workers.html?pagewanted=all&_r=0.

7. http://www.foxbusiness.com/news/2013/03/12/rpt-yahoo-mayer-gets-internal-flak-for-more-rigorous-hiring/.

8. Ibid.

9. Bureau of National Affairs. (February 2011). “Pretty Women May Face Hiring Disadvantages, Study Finds,” H.R. focus 88(2), 13.

10. “An Executive Perspective on Workforce Planning 2004.” The Rand Corporation. Santa Monica, CA.

11. Kahneman, D. 2011. Thinking, Fast and Slow. New York: Farrar, Straus and Giroux. 246.

12. Ibid. 247.

13. Flyvbjerg, B. (January 2008). “Curbing Optimism Bias and Strategic Misrepresentation in Planning: Reference class forecasting in practice,” European Planning Studies, 16(1), No. 1, 3–21.

14. Ibid. 8.

15. Glassdoor. http://www.crunchbase.com/company/glassdoor.

16. Garber, M. (March 20, 2012). “Would You Give Job Interviewers Your Facebook Password? Because They Might Ask.” The Atlantic. http://www.theatlantic.com/technology/archive/2012/03/would-you-give-job-interviewers-your-facebook-password-because-they-might-ask/254810/.

17. Ibid. In Maryland, House Bill 364 was introduced in January 2012; and in Illinois, Illinois Bill 3782 was introduced in March 2012.

18. Hansell, S. (January 3, 2007). “Google’s Answer to Filling Jobs Is an Algorithm,” New York Times.

19. Dizikes, P. 2012. March 6th. “Hail to the geeks” MIT News Office.

20. Ibid.

21. Scarborough, D. J. et al. Electronic Employee Selection Systems and Methods. U.S. Patent No. 7,080,057 B2, filed August 2, 2001, and issued July 18, 2006. http://www.google.com/patents.

22. Breaugh, J. A. (2009). “The Use of Biodata for Employee Selection: Past research and future direction,” Human Resource Management Review, 19, 219–231.

23. Ibid.

24. Goldsmith, D. B. (1922). “The Use of the Personal History Blank as a Salesmanship Test,” Journal of Applied Psychology, 6(2), 149–155.

25. Ployhart, R. E., Schneider, B., and Schmitt, N. (2006). Staffing Organizations: Contemporary Practice and Theory 3e. Mahwah, NJ: Lawrence Erlbaum Associates.

26. Furnham, A. (2008). “HR Professionals’ Beliefs About, and Knowledge of, Assessment Techniques and Psychometric Tests International,” Journal of Selection and Assessment, 16, 300–305.

27. Ibid.

2. http://www.gsb.stanford.edu/news/research/berk-incentives.html.

3. http://fcic-static.law.stanford.edu/cdn_media/fcic-testimony/2009-1020-Stiglitz-article.pdf.

4. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=761970.

5. Bebchuk, L. and Fried, J. (2004). Pay Without Performance: The Unfulfilled Promise of Executive Compensation. Harvard University Press.

6. http://www.oecd.org/employment/emp/40846335.pdf.

7. Stigliz, J. E. (2012). The Price of Inequality: How Today’s Divided Society Endangers Our Future. W.W. Norton & Company.

8. This may sound extreme, however, there were those who argued that the financial crisis was precipitated by excess risk taking, which was directly related to the way in which bankers and mortgage brokers were incented.

9. This YouTube video provides a good overview of the concept of marginal revenue product. http://www.youtube.com/watch?v=jhgTxU1q48g.

10. http://www.packers.com/community/shareholders.html.

11. Murphy, Audie (2002). To Hell and Back. New York: Henry Holt and Co.

12. Akerlof, G. A. (1982). “Labor Contracts as Partial Gift Exchange,” Quarterly Journal of Economics, 97, 543–569.

13. Noe, R. A., Hollenbeck, J. R., Gerhart, B., and Wright, P. M. (2010). Human Resource Management: Gaining a Competitive Advantage 7e. New York: McGraw-Hill Irwin. 351.

14. Ibid. 354.

15. Harter, J. K., Schmidt, F. L., and Hayes, T. L. (2002). “Business-Unit Level Relationships between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis,” Journal of Applied Psychology, 87, 88–95.

16. Latham, G., Almost, J., Mann, S., and Moore, C. (2005). “New Developments in Performance Management,” Organizational Dynamics, 34, 77–87.

17. Evelson, G. and Schooley, C. (November 7, 2011). “Use of HR Analytics to Optimize Talent Processes.” Forrester Research Inc. Cambridge, MA. Holincheck, J. (May 10, 2011). “The Talent Management Suite Market Emerges.” Gartner Research Note. Gartner, Inc.

18. http://www.santafe.edu

19. Bebchuk, L. and Fried, J. (2004). Pay Without Performance: The Unfulfilled Promise of Executive Compensation. Harvard University Press.

20. http://en.wikipedia.org/wiki/World_Health_Organization_ranking_of_health_systems.

2. This site provides a good introduction to agent-based modeling (ABM). ABM provides a method for modeling actual individual behaviors. http://www.agent-based-models.com/blog/about.

3. For these definitions, I draw heavily from Stuart Russell and Peter Norvig’s Artificial Intelligence: A Modern Approach 3e (Pearson Education, 2010). This is largely taken from the Introduction, pages 1–5.

4. Ibid.

5. Giarratano, J. C. and Riley, G. D. (2005). Expert Systems: Principles and Programming. Boston: Thompson Learning, Inc.

6. Fayyad, U., Piatetsky-Shapiro, G. and Smyth, P. (1996). “From Data Mining to Knowledge Discovery in Database.”

7. http://en.wikipedia.org/wiki/Data_mining.

8. http://en.wikipedia.org/wiki/Decision_tree_learning.

9. https://en.wikipedia.org/wiki/Expert_system.

10. http://en.wikipedia.org/wiki/Fuzzy_logic.

11. http://en.wikipedia.org/wiki/Genetic_algorithm.

12. Yaser S. Abu-Mostafa. (July 2012). “Machines That Think for Themselves: New Techniques for Teaching Computers How to Learn Are Beating the Experts,” Scientific American, 78.

13. http://en.wikipedia.org/wiki/Neural_network.