IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v9y2021i23p3126-d695073.html
   My bibliography  Save this article

Enterprise Compensation System Statistical Modeling for Decision Support System Development

Author

Listed:
  • Artur Mitsel

    (Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia
    Department of Experimental Physics, Tomsk Polytechnic University, 634050 Tomsk, Russia)

  • Aleksandr Shilnikov

    (Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia)

  • Pavel Senchenko

    (Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia)

  • Anatoly Sidorov

    (Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia)

Abstract

This article raises the issue of decision support system (DSS) development in enterprises concerning the compensation system (CS). The topic is relevant as the CS is one of the main components in human resource management in business. A key element of such DSSs is CS models that provide predictive analytics. Such models are able to give information about how a particular CS affects output, product quality, employee satisfaction, and wage fund. Thus, the main goal of this article is to obtain a CS statistical model and its formulas for determining the probability densities of resultant indicators. To achieve this goal, the authors conducted several blocks of research. Firstly, mathematical formalization of CS functionality was described. Secondly, a statistical model of CS was built. Thirdly, calculations of CS result indicators were made. Reliable scientific methods were used: black box modeling and statistical modeling. This article proposes a statistical and analytical model. As an example, a piecework-bonus system statistical model is demonstrated. The discussion derives formulas of integral estimations showing the probability density of the resulting CS indicators and the related statistical characteristics. These results can be used to predict the behavior of the workforce. This constitutes the scientific novelty of the study, which will establish significant advances in the development of DSSs in the field of labor economics and HR management.

Suggested Citation

  • Artur Mitsel & Aleksandr Shilnikov & Pavel Senchenko & Anatoly Sidorov, 2021. "Enterprise Compensation System Statistical Modeling for Decision Support System Development," Mathematics, MDPI, vol. 9(23), pages 1-19, December.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:23:p:3126-:d:695073
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/9/23/3126/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/9/23/3126/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kyungyong Chung & Raouf Boutaba & Salim Hariri, 2016. "Knowledge based decision support system," Information Technology and Management, Springer, vol. 17(1), pages 1-3, March.
    2. Joseph G. Altonji & Anthony A. Smith Jr. & Ivan Vidangos, 2013. "Modeling Earnings Dynamics," Econometrica, Econometric Society, vol. 81(4), pages 1395-1454, July.
    3. Duygu Turker, 2018. "Social Responsibility and Human Resource Management," CSR, Sustainability, Ethics & Governance, in: Managing Social Responsibility, chapter 0, pages 131-144, Springer.
    4. Duygu Turker, 2018. "Managing Social Responsibility," CSR, Sustainability, Ethics & Governance, Springer, number 978-3-319-91710-8, May.
    5. Anja Deelen, 2021. "Flexible Wages or Flexible Workers? A Decomposition of Wage Bill Adjustment by Dutch Firms, 2006–2013," De Economist, Springer, vol. 169(2), pages 179-209, May.
    6. Zhou, Bing & Li, Yu-meng & Sun, Fang-cheng & Zhou, Zhong-guo, 2021. "Executive compensation incentives, risk level and corporate innovation," Emerging Markets Review, Elsevier, vol. 47(C).
    7. Alex Edmans & Xavier Gabaix, 2016. "Executive Compensation: A Modern Primer," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1232-1287, December.
    8. Ruina Yang & Yinhua Mai & Chung‐Yee Lee & Chung‐Piaw Teo, 2020. "Tractable Compensation Plan under Asymmetric Information," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1212-1218, May.
    9. Brink, William & Kuang, Xi (Jason) & Majerczyk, Michael, 2021. "The effects of minimum-wage increases on wage offers, wage premiums and employee effort under incomplete contracts," Accounting, Organizations and Society, Elsevier, vol. 89(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zelalem Gebretsadik Estifo & Luo Fan & Naveed Ahmad Faraz, 2019. "Effect of Employee Oriented Human Resource Management Practices on Counterproductive Work Behaviors," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 5(1), pages 23-41, June.
    2. Noriko Amano, 2018. "Nutrition Inequality: The Role of Prices, Income, and Preferences," 2018 Meeting Papers 453, Society for Economic Dynamics.
    3. Manuel Arellano & Stéphane Bonhomme & Micole De Vera & Laura Hospido & Siqi Wei, 2022. "Income risk inequality: Evidence from Spanish administrative records," Quantitative Economics, Econometric Society, vol. 13(4), pages 1747-1801, November.
    4. repec:spo:wpecon:info:hdl:2441/6ggbvnr6munghes9od0s108ro is not listed on IDEAS
    5. Michael Keane & Elena Capatina & Shiko Maruyama, 2019. "Health Shocks and the Evolution of Earnings over the Life-Cycle," Discussion Papers 2018-14a, School of Economics, The University of New South Wales.
    6. Sabelhaus, John & Song, Jae, 2010. "The great moderation in micro labor earnings," Journal of Monetary Economics, Elsevier, vol. 57(4), pages 391-403, May.
    7. Simon Jäger & Benjamin Schoefer & Samuel Young & Josef Zweimüller, 2020. "Wages and the Value of Nonemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1905-1963.
    8. Harris, Qun & Tanaka, Misa & Soane, Emma, 2020. "Does bonus cap curb risk taking? An experimental study of relative performance pay and bonus regulation," Bank of England working papers 882, Bank of England.
    9. Michael Carlos Best & Henrik Jacobsen Jacobsen, 2013. "Optimal Income Taxation with Career Effects of Work Effort," Working Papers 2013-9, Princeton University. Economics Department..
    10. Chaigneau, Pierre & Edmans, Alex & Gottlieb, Daniel, 2018. "Does improved information improve incentives?," Journal of Financial Economics, Elsevier, vol. 130(2), pages 291-307.
    11. Nils M. Gornemann & Keith Kuester & Makoto Nakajima, 2021. "Doves for the Rich, Hawks for the Poor? Distributional Consequences of Systematic Monetary Policy," Opportunity and Inclusive Growth Institute Working Papers 50, Federal Reserve Bank of Minneapolis.
    12. Fabian Dutschkus & Christian Lukas, 2022. "Social Relationships and Group Dynamics within the Supervisory Board and their Influence on CEO Compensation," Schmalenbach Journal of Business Research, Springer, vol. 74(2), pages 163-200, June.
    13. Bruins, Marianne & Duffy, James A. & Keane, Michael P. & Smith, Anthony A., 2018. "Generalized indirect inference for discrete choice models," Journal of Econometrics, Elsevier, vol. 205(1), pages 177-203.
    14. David Lagakos & Benjamin Moll & Tommaso Porzio & Nancy Qian, 2012. "Experience Matters: Human Capital and Development Accounting," Working Papers 2012-021, Human Capital and Economic Opportunity Working Group.
    15. Robert M. Sauer & Christopher Taber, 2021. "Understanding women's wage growth using indirect inference with importance sampling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(4), pages 453-473, June.
    16. Tim Hazledine, 2016. "Tip of the Iceberg? Organisational Foundations of Top Pay in New Zealand Listed Companies, 1995-2014," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(3), pages 197-206.
    17. Richard Blundell & Christopher R. Bollinger & Charles Hokayem & James P. Ziliak, 2024. "Interpreting Cohort Profiles of Lifecycle Earnings Volatility," Working Papers 24-21, Center for Economic Studies, U.S. Census Bureau.
    18. repec:spo:wpmain:info:hdl:2441/6ggbvnr6munghes9od0s108ro is not listed on IDEAS
    19. Audoly, Richard & De Pace, Federica & Fella, Giulio, 2022. "Job Ladder, Human Capital, and the Cost of Job Loss," CEPR Discussion Papers 17746, C.E.P.R. Discussion Papers.
    20. Liu, Kai, 2015. "Wage Risk and the Value of Job Mobility in Early Employment Careers," IZA Discussion Papers 9256, Institute of Labor Economics (IZA).
    21. repec:hal:journl:hal-01070442 is not listed on IDEAS
    22. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2016. "Matching, Sorting and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 19, pages 63-87, January.
    23. Hong, Jieying, 2019. "Managerial compensation incentives and corporate debt maturity: Evidence from FAS 123R," Journal of Corporate Finance, Elsevier, vol. 56(C), pages 388-414.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:9:y:2021:i:23:p:3126-:d:695073. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.