My research seeks to understand how existing organisations, through their structure, composition, and compensation practices, influence employment mobility of individuals in the labour market. I am also interested in the reverse question, namely, how patterns of mobility influence the demographic composition and inequality in and across organisations. I conduct quantitative analyses on large scale micro-data on Swedish labour market to answer these questions. Previously, I have investigated some of these issues using historical data on the Dutch audit industry.
Wage Inequality and Mobility
What are the conditions under which wage inequality in organisations suppress or amplify cross-firm mobility of employees? How does the compensation structure of organisations incentivise employees to start own companies rather than change employers? These are the main questions that motivate my on-going research on inequality and mobility.
- Balachandran, C., Wennberg, K. and Wezel, F. C. (2015). “From Hierarchies to Markets: Wage Inequality and Mobility into Entrepreneurship”. Academy of Management Proceedings. Vol. 2015. No.1. Academy of Management.
Heterogeneity and Mobility
Heterogeneity among employees in a workplace brings not only opportunities but also unique challenges to organisations. Managing a diverse workplace is one of the most challenging yet rewarding tasks of managers. While part of this challenge could be tackled by everyday management practices, it is less efficient for organisations that embrace diversity as a long-term policy. Organisations could, however, permanently adapt their work structures to be more resilient to the coordination challenges that typically arise with heterogeneity. In other words, my research aims to identify organisational structures that show higher resilience to the increasing and changing demography of workplaces. This is especially important for senior management teams who have to manage themselves in guiding the organisations.
- Balachandran, C. (2013),“Iron cage of diversity: Rational bureaucracy and the antecedents of TMT diversity in Dutch accounting firms 1940-1982”. Academy of Management Proceedings. Vol. 2013. No. 1., Academy of Management.
- Balachandran, C. and Wezel, F. C. (2014), “TMT diversity in bureaucracies: Consequences for Dutch accounting firms, 1940-1982”, Academy of Management Proceedings. Vol. 2014. No. 1., Academy of Management.
Segregation in Startup Boards: Determinants and Consequences
Board of Directors often facilitates the flow of valuable resources and knowledge between organisations by serving on multiple boards at the same time or in different points in time. Startups also benefit from the network of Board of Directors. Yet we do not know much about the demographic and human capital composition of boards in startups, whether any systematic pattern exist in the appointments that leads to segregation in terms of demographics and human capital, and the resulting consequences for the growth and survival of startups. In the ongoing research project funded by Handelsbanken Research Foundations, together with Timurs Umans at Kristianstad University and Karl Wennberg at Linköping University and Stockholm School of Economics, I investigate those questions by analysing the employment history of founders.