I briefly comment on two chapters on the topic of compensation, one written from a “micro” perspective and the other from a “macro” perspective. To begin, I catalog what I see as some important facts describing compensation in the workplace, and comment on areas where research could better align with such facts. Next, I identify commonalities and differences in the issues addressed by Larkin and by Nyberg and Reilly, as well as providing a few of my own thoughts on these issues. I find that the two chapters have few commonalities, instead focusing on different issues in the study of compensation. Comparing and contrasting these different perspectives is helpful in identifying some important takeaways as well as in thinking about what research is needed going forward. I provide my thoughts on both.
Ingo Weller and Barry Gerhart
This chapter discusses methodological challenges in doing empirical quantitative research on HRM and effectiveness in the field of comparative human resource management (HRM). In particular, attention is paid to the challenges of adopting an appropriate level of analysis and of inferring causality in studying the HRM_effectiveness link. The authors provide examples of how to handle methodological problems when working with quantitative data, including advice on fixed-effects models and conducting quasi-experiments in comparative HRM studies.