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Investment or identification: The decision to exercise stock options as an indicator of organizational identification

Posted on:2010-07-09Degree:Ed.DType:Dissertation
University:University of PennsylvaniaCandidate:Almeda, David CharlesFull Text:PDF
GTID:1449390002488315Subject:Economics
Abstract/Summary:
Talent management can broadly be defined as the attraction, integration, development and retention of employees. Historically, many of the components of an organization's talent management strategy and tactics have been allocated in a largely isolated manner to the various specialized human resources (HR) functions. Focus should be given to constructing aligned HR organizations with the goal of delivering talent management solutions that will drive the business as effectively and efficiently as possible. Particular attention should be paid to constructing and staffing HR organizations in a fashion that enables meaningful impact on the level of organizational identification of employees.;This research attempts to bring together two HR areas that are not typically considered together: compensation and organizational development. This is done by considering employee stock divestment behavior to be a representation of organizational identification. More specifically, the study empirically assesses the non-qualified stock option selling behavior of executives by examining the case of one company over a seven-year period, from 2001 through 2007. One form of equity grant, non-qualified stock options, is examined. The study explores three classes of independent variables (individual executive characteristics, organizational characteristics, and market characteristics) as predictors of non-qualified stock option selling behavior. The results indicate that all three classes contain indicators that are related to non-qualified stock selling behavior, which is potentially indicative of organization identification.;The study of executive behaviors and tendencies related to an executive's decision to sell non-qualified stock options can provide valuable insight into the level of organizational identification of an institution's employees. Viewing organizational identification through the unique lens of non-qualified stock option selling behavior provides an atypical, factual and useful vehicle for measuring the level of executive identification with an organization's distinctive and enduring characteristics. This perspective also proves useful in creating a more informed view of the efficacy of non-qualified stock option programs and in furthering the understanding of organizational identification as a whole.
Keywords/Search Tags:Organizational identification, Stock option
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