Prof. Liat Eldor
THE WHARTON SCHOOL OF THE UNIVERSITY OF PENNSYLVANIA
COLLER SCHOOL OF MANAGEMENT, TEL AVIV UNIVERSITY
OVERVIEW
I study how modern features of HR practices and new work arrangements affect organization-level outcomes related to business performance. In my research models, I apply OB theories and concepts at the organizational level to address contemporary challenges in managing people and new developments in HR practices such as non-standard arrangements of work, and work engagement and leadership issues in the gig economy.
To conduct my research, I employ a wide range of data methodologies, including panel-data, longitudinal measures, and experimental assessments. I obtain these data through close collaborations with leading business organizations such as Tata, TCS, Uber, as well as public agencies. The contexts span from leading retail chains to global high-tech companies and service organizations. I use a wide array of – quantitative and qualitative-methods, including multi-level hierarchical and FX models, Kernel regressions, economics-based techniques, field experiments, interviews, and advanced AI-based Large Language Models (LLMs) text analysis.
Focusing on the topic of work engagement in my PhD studies, my interest in coming to the Wharton School as a Post-Doctoral Fellow, supervised by Prof. Peter Cappelli, was to develop HR expertise that uses my OB academic background and to transition to studies that were closer to business and organizational phenomena and to HR practices. This transition is evident in my publications in recent years as an assistant professor at Coller Management School at Tel Aviv University.
In my Academy of Management Journal paper “Agent Temps Hurt Business Performance,”, I integrate social identity theory with the topic of non-standard work arrangements to examine the now common blended workplace, where standard employees work alongside temporary agency workers. In contrast to the prevailing
assertion that the use of an agency workforce benefits organizations by allowing them to respond faster to changing market conditions, I find greater use of agency temps actually hurts business performance. A novel feature of this study is that it has robust measures not only of sales at the organization level but also of the quality of customer services as assessed by secret shoppers. I examine these relationships using panel data of a range of employee and organization-level sources over four years from a retail chain.
The explanation for this relationship is that agency workers have a negative effect on the identification that regular employees have with their workplace (using social identity theory and status-based argument) which, in turn, reduces their performance and that of the organizations where they work. Applying OB theories from the
diversity literature about blurring boundaries between racial groups, I also introduce two workplace-level buffering strategies, one business-oriented (shared instrumental values), and the other social (integration practices) that moderate the detrimental effects of a blended workplace on the identification of standard
employees and business performance.
In my co-authored theoretical paper, “The Use of Contracts of Employees: Their Widespread Use and The Implications for Management”, published in Academy of Management Annals, I study the increasing use of contractual practices (typically used in non-standard work employments), such as noncompete agreements and
mandatory arbitration clauses in traditional organizational settings. In this paper, I argue that this phenomenon is far more common in conventional employment than acknowledged academically; yet understudied in the management literature. I identify the various contracting arrangements now imposed on regular employees and their effects and implications, as well as what happens when these two systems—contracting and traditional–operate at the same time in organizations, an increasingly common phenomenon nowadays.
My solo-authored paper “Leading by Doing”, published in Academy of Management Journal, introduces the concept of leading by doing. I explore whether leading by doing, where leaders actually manifest the desired behaviors rather than simply telling subordinates what to do, is more effective in cultivating firm-level engagement and productivity. While the idea of leading by doing is commonly advocated in practice, perhaps surprisingly, there have been no empirical studies testing it nor any efforts to establish it as an academic construct. This study is also novel in that, while most research on the effects of leadership has focused on the
employee/individual level, my study looks at organization-level outcomes. In this solo-authored paper, I argue and demonstrate that leading by doing is distinct from other verbally-oriented leadership approaches such as charismatic leadership- where the leader articulates the desired expectations but does not illustrate them in an
observable way. Using three-time-point panel data derived from different sources, the findings provide evidence that leading by example improves firm-level work engagement and productivity after taking into account the potential influence of other leadership characteristics.
My solo-authored paper “The Effect of Organizational Authenticity on Employees’ Performance: Evidence from A field Experiment”, recently accepted in Journal of Management continues my interest in integrating OB theories and concepts with important HR practices, this time using a field experiment to study the effect of organizational authenticity on performance outcomes. Whereas most organizational, HR practices try to communicate the positive attributes of the organization, I propose that expressing organizational authenticity, that represents both the favorable and less favorable attributes of life in the organization, would lead to greater
organizational effectiveness. In contrast to this traditional ‘strength-based’ approach, my field experiment in a global high-tech company (Tata Consultancy Service), demonstrates that organizational authenticity—emphasizing both favorable and less favorable attributes— enhances long-lasting performance and organizational effectiveness. I measure performance at four-time points: at the beginning of intervention (T1), at end of one-month training (T2+T3), and four months on the job (T4).
Current & Future Research
Building on these contributions, my ongoing and future research focuses on advancing OB theories and HR models (e.g., Yukl’s leadership taxonomy, Franch & Raben’s model of power), developed for traditional workplaces, by studying how they fit for non-conventional workforces and new work contexts.
For example, I lead a lab exploring engagement, leadership, and power in gig economy settings and nonstandard work dynamics, where two PhD students from Tel Aviv University/Coller School collaborate and work closely with PhD students from the University of Pennsylvania and India Institute of Science. We employ
qualitative methods (e.g., interviews with 200 gig workers in India and the USA). We also employ quantitative techniques (e.g., AI-based text analysis of WhatsApp chats and gig forums). We analyze content, tone, and structure using cutting edge methods such as LLMs, fine tuning, clustering, LDA, and network analysis. We use
Python coding to train AI sophisticated models to identify nuanced incidents and unique characteristics in large scale of data (3 million records). The project is funded by the Israeli Scientific Foundation for three years as well as by Wharton Center for Human Resources & Wharton People Analytics. The first paper is already
accepted to 2025 Academy of Management Conference and EURAM Conference and is under review process in Administrative Quarterly Science, another is under writing stage, while other models are at analyzing stage.
I am also involved with faculty colleagues and post doc students at Wharton with a large-scale project with a U.S.-based high-tech company to identify the most effective HR practices for enhancing organizational engagement in remote working modes. Collaborating closely with their HR department, we intend to analyze
10-year, HR-based data (e.g., various performance metrics, absenteeism, PTOs, perks) and text-based data (e.g., Slack messages, managerial feedback records). We then intend to run field experiments in the company to establish causal links between the proposed HR practices and organizational outcomes. I plan to involve 2 PhD students from Tel Aviv University/Coller Business School in this project.
I am currently engaged in mixed method- experimental field and qualitative- research projects at TCS (a multi-national technology corporation, with 600,000 employees), which aim at rethinking its leadership strategy by replacing human leadership with algorithmic management/AI in daily leadership responsibilities. The focus is on how AI-based leadership can be effectively implemented well as scaled in large, multicultural settings.
My research integrates theories and models from OB with challenges in HR and employment relations, offering actionable solutions for contemporary organizational challenges. Through advanced methodologies, cross national and inter-university collaborations, and a focus on impactful questions, I aim to advance theoretical
knowledge in the management field and contribute to organizational practice.
REFEREED PUBLICATIONS
Hodor, M., Eldor, L., & Cappelli, P. (2025). The lower boundary of workplace mistreatment: Do small slights matter? (NBER Working Paper No. 34362). National Bureau of Economic Research.eitanel2025-11-29T17:45:12+00:00
Abstract
Recent research in psychology, management, and more recently in economics, highlights the role of individual managers and their behavior in shaping employee performance. While emerging literature on harmful managerial behavior has focused primarily on severe forms of workplace mistreatment, especially various types of harassment, much less is known about its boundary conditions: How minor can a manager’s bad behavior be and still negatively affect employee performance? We study what appears to be a very minor workplace mistreatment—failing to deliver an expected birthday gift and greeting card on time—and examine its effect on subsequent employee performance. Using a dynamic difference-in-differences approach with detailed data from a national retail chain, we find that this small slight leads to over a 50% increase in employee absenteeism and a reduction of more than two working hours per month. Our analysis suggests that emotional responses to perceived workplace mistreatment drive the results. These findings indicate that even modest slights can meaningfully harm employee performance.
Abstract
The concept of organizational authenticity—the consistency between an organization’s espoused values and its lived practices—has garnered considerable interest in academic discourse. While the authenticity literature has paid much attention to external stakeholders (e.g., clients), the notion of organizational authenticity perceptions of an important stakeholder—employees—has been understudied. Despite prior evidence of external stakeholders’ positive reactions to organizational authenticity perceptions, whether and how it can also affect employees and their work performance remains an open question. I undertook a randomized field experiment in a large, global consulting company to examine how employee perceptions of organizational authenticity affect their work performance. Compared with the control group, those who perceived their organization as authentic demonstrated higher performance. I show evidence that employee trust in the organization mediates the relationship between employee perceptions of organizational authenticity and work performance. Alternative mediators—organizational identification and organizational likability—did not explain this relationship. The study’s results advance the literature by revealing the important role of organizational authenticity perceptions among an internal stakeholder—employees—and the way it affects work performance.
Abstract
It is certainly important for people in some jobs to feel safe to speak up, make mistakes, take risks, or ask for help. They include jobs that involve creativity, learning, and exploration. But five studies of workers in a variety of frontline jobs found that more is not always more when it comes to psychological safety. Previous research had focused only on the average effects, which, of course, are made up of high scores and low scores. But psychological safety is not an “either/or” outcome; it is a question of degree. The authors found that when you move from average to high levels of psychological safety, performance in routine jobs actually declined.
- Human Resources Executive, entitled as “Trying to drive psychological safety higher? Why it may backfire for HR”, October 2, 2023.
- Knowledge at Wharton, entitled as:” The Downside of Psychological Safety in the Workplace”, November 21, 2023.
- Fortune, entitled as:” If you make your employees feel too comfortable, they just won’t work as hard, study suggests”, October 19, 2023.
Abstract
While psychological safety climate is widely seen as having a positive relationship with work performance, there are compelling reasons as to why that may not always apply. We draw on cognitive psychology literature to suggest that high levels of psychological safety climate can actually harm the performance of routine tasks. The negative effect of high levels of psychological safety climate on these tasks can be moderated, however, by collective accountability. We find evidence for these propositions across five independent studies at different levels of analysis and organizational settings. We find that while moderate levels of psychological safety climate are associated with better in-role performance, high levels are associated with decreasing in-role performance. Collective accountability can buffer that decreasing performance. These results help identify the boundary conditions of psychological safety climate and extend research on it to organization-level and business outcomes with real-world consequences.
- Its core insights have been published at Wall Street Journal “Treating Employees Like Contractors Is On the Rise—and Will Likely Backfire” November 8th, 2023: https://www.wsj.com/articles/employees-contractors-productivity-duties-11667597666
Abstract
While many management studies have documented the rise of alternative, nonemployment working arrangements like the “gig” economy and electronic platforms, the application of contracting practices to actual employees is far more common in traditional employment, but understudied in the management literature. These practices include requiring employees to sign legal contracts such as noncompete agreements that limit their ability to quit, or mandatory arbitration clauses. We begin by describing the unique nature of traditional employment and of contracting. We then document the various contracting arrangements now imposed on employees, their prevalence, their effects, and what happens when these two systems operate at the same time. We also discuss the implications for the practice of management and provide a guide to research questions raised by this development.
Read in the Academy of Management
Read in the Wall Street Journal
* Featured in Academy of Management Insights.
Abstract
This paper presents a research model for the creation of organizational value through leading by example. I argue that leading by example serves as a unique value-creation driver by enhancing engagement, productivity, and service quality at the business level. Using a strategy-based resource management framework, I also argue that there are synergies between leading by example and the manifestation of organizational core values. My theory is grounded in the strategy-based notion that combining organizational resources—leading by example (practical element) and organizational core values (conceptual element)—optimizes employee engagement, which in turn enhances productivity and service quality. I examine my model empirically using two-time-point panel data derived from three different sources (employees, financial data, and secret shoppers) in a sample of 233 retail stores. The findings provide evidence that leading by example improves productivity and service quality (after taking into account the potential influence of charismatic leadership). The indirect effect of leading by example on productivity and service quality (through engagement) is even stronger when manifestation of organizational core values is high. Contributions to theory, research, and practice are presented.
* Featured in Academy of Management Insights.
Abstract
The use of agency temps in the workplace has been the subject of considerable research interest, much of it focused on the effects that using temps have on the job attitudes of regular employees. We advance this stream of research by examining the effects of using agency temps on business performance. We find first that when otherwise identical workplaces make greater use of temporary help provided by agencies, the identification of the employee or “regular” workforce with their workplace declines because the perceived status of the workplace declines. This, in turn, leads to lower store-level service quality and sales. This effect is independent of the notion suggested in earlier studies that temp workers threaten the job security and opportunities for advancement of regular employees. Finally, we find that these negative effects can be mitigated by workplace-level strategies associated with shared instrumental values and social integration practices. We examine these relationships using a range of employee and store-level data sources over time from a retail chain.
Abstract
We argue that collective engagement can serve as a unique value‐creation capacity at the business level by linking shared vision and service performance. We also propose that competitive intensity will be a market indicator by which management can enhance the effect of shared vision on collective engagement, and indirectly strengthen service performance (through collective engagement). Furthermore, we argue that this distinctive value‐creation capability, embedded in collective engagement, generates competitive advantage; specifically, one that competing organizations will struggle to replicate. We examine our moderated‐mediation model by using a three‐time‐point method derived from five different sources in 198 retail‐service branches. Our findings indicate that collective engagement, fueled by shared organizational vision, improves service performance. Furthermore, as this conditional indirect effect of shared vision on service quality and customer satisfaction was solely generated through collective engagement rather than other mechanisms (i.e., commitment and involvement), it creates a competitive advantage for engagement‐oriented organizations.
Abstract
Background
In contrast to earlier assumptions that the “ideal worker” should embrace traditional notions of career success, there is growing recognition that possessing holistic career values may be beneficial in the work domain as well. However, there is little empirical evidence to support this argument. We hypothesised that individuals who at the time of their university graduation possessed holistic career values would display stronger personal life satisfaction 20 years later, which in turn would enhance their work engagement (i.e. an individual’s perceptions of the extent to which the work environment possesses engaging characteristics).
Methods
Data from a longitudinal study of 158 university students who completed two questionnaires, one in 1992 and the other 20 years later, supported our hypotheses.
Results
We found that individuals who possessed holistic career values displayed stronger personal life satisfaction 20 years later, which in turn enhanced their work engagement. We further found that this indirect effect of holistic career values on work engagement (through personal life satisfaction) is conditionally moderated by work–family interference.
Conclusions
Cultivating a holistic career perspective among employees is beneficial for both employee well‐being (i.e. personal life satisfaction) and the flourishing of their organisations (i.e. work engagement).
Abstract
Surveys to assess how engaged workers are in their jobs are highly popular among employers, who hope the results will help them improve employee productivity and creativity and reduce turnover. But consultants and academics have long differed in their conclusions about how much can be inferred from the results of these surveys. Based on our own work as academics we caution business leaders implementing such a survey: it may not tell you anything about your employees that you can do much about.
Abstract
This study seeks to investigate the effect of compassion in the public service workplace. Our compassion model is based on public service sector employees who receive compassionate feelings such as affection, generosity, caring, and tenderness from their supervisors. A longitudinal study of 166 public service employees, their supervisors and 333 of their clients (citizens) was conducted in Israel. In this longitudinal study, we found evidence that receipt of compassion from supervisors (at time 1) in the public service workplace was positively associated with employees’ sense of work engagement, and negatively related to their work burnout (at time 2). Furthermore, receipt of compassion (at time 1) was also found to impact public service employees’ organizational citizenship behavior (OCB) and knowledge sharing (at time 2) as rated by their supervisors, as well as their service-oriented performance of compassionate behavior toward clients (at time 2), rated by the citizens. Finally, we found evidence for compassion acting as a mechanism for coping with common stressful public service conditions such as demanding citizens and administrative workload, which are inherent in this sector. Compassion in the public service workplace may therefore be salient in effecting public service work performance, and as such should be consciously targeted by public sector managers and policy makers.
Abstract
Scholars have generally neglected the importance of the subjective aspects of time in the field of work stress. In this paper we analyze the joint effects of employee perceptions of subjective time and cultural, organizational, individual, and situational factors on employee experiences of stress. By explicitly considering the role of subjective time in stress research, we develop several propositions and discuss recommendations for future research. We discuss implications for organizational practice in reducing stress, revolving around the manipulation and experience of time.
Abstract
Scholars have largely focused on the negative consequences of organisational politics for employees’ performance. In contrast, we maintain that organisational politics has positive aspects and moderates the relationship between employee engagement and behaviors at work such as knowledge sharing, creativity, proactivity, and adaptivity. Using data from 253 high‐tech employees and their supervisors in Israel, our findings demonstrate that perceptions of organisational politics strengthen the relationship between employee engagement and these behaviors. When engaged employees perceive their workplace to be political, they are more proactive, creative, and adaptive, and more likely to share their knowledge with their peers. These findings confirm the challenge/opportunity stressor theory regarding perceptions of organisational politics and suggest that whether politics is viewed as positive or negative depends on the employees’ point of view. For those who are engaged and more actively involved in their jobs, politics can be regarded as a challenge and even an opportunity for obtaining more resources to improve their performance. Implications for the development of theory and practice in this area are discussed.
Abstract
Employee engagement has recently been introduced as a concept advantageous to organizations. However, little is known about the value of employee engagement in explaining work performance behaviors compared with similar concepts. The learning climate, defined as the organization’s beneficial activities in helping employees create, acquire, and transfer knowledge, has also been proposed as an antecedent of employee engagement. Using data from a sample of 625 employees and their supervisors in various occupations and organizations throughout Israel, we investigated employee engagement as a key mechanism for explaining the relationship between perceptions of the organization’s learning climate and employees’ proactivity, knowledge sharing, creativity, and adaptivity. We also tested whether employee engagement explained the relationship more thoroughly than similar concepts such as job satisfaction and job involvement. Multilevel regression analyses supported our hypotheses that employee engagement mediates the relationship between the perceived learning climate and these extra‐role behaviors. Moreover, engagement provides a more thorough explanation than job satisfaction or job involvement for these relationships. The implications for organizational theory, research, and practice are discussed. Copyright © 2015 John Wiley & Sons, Ltd.
Abstract
Research interest in the new concept of employee engagement has grown dramatically in recent years. Employee engagement represents a work-related state of mind characterized by feelings of vigor, fulfillment, enthusiasm, absorption and dedication. However, scholars are still ambivalent about its theoretical contribution to explaining the employee–organization relationship. The goal of the study is to strengthen the theoretical foundation of the employee engagement concept in light of this relationship. We first compared employee engagement to other close concepts such as psychological empowerment and psychological contract. We then examined its contribution to the explanation of work centrality over and above psychological empowerment and psychological contract. Our study is based on an interactive sample of 593 employees from both private and public organizations in Israel. Our findings demonstrate that employee engagement is distinct from psychological empowerment and psychological contract and has an incremental value for work centrality over and above psychological empowerment and psychological contract. Implications of our findings are discussed the light of the employee–organization relationship.
Abstract
This article deals with the emerging concept of Employee Engagement (EE) and its meaning for public administration research and theory. Generically, EE reflects a positive, fulfilling, affective-motivational, work-related state of mind characterized by vigor, dedication, and absorption. In an attempt to understand whether the concept of EE is meaningful for public administration research and theory, we examine its essence and foundation using a comparative method. First, we compare EE with two well-established employee–organization relationship (EOR) concepts: Affective Commitment (AC) and Job Involvement (JI). Second, we compare EE in public versus private sector employees, and finally, we compare the concept in employees and managers in the public sector. Our study is based on an interactive sample of 593 employees and managers from both the private and public sectors in Israel. The results support several hypotheses. First, EE is an empirically distinct construct compared with other EOR concepts. Second, EE is higher among public sector employees than private sector employees. Third, EE is higher among public managers than public employees. Implications of our findings and recommendations for future theoretical and empirical studies of EE are discussed.
Book Chapters
Eldor, L. (2024). Why Care about Compassionate Leadership? In K. Lasater & K. N. LaVenia, (Eds.). Compassionate Leadership for School Improvement and Renewal, (pages 95-115), Age Publishing.
Cappelli. P., & Eldor, L. (2021). Contracting, Engagement, and the “Gig” Economy. In J. Meyer & B. Schneider (Eds.), Research agenda for employee engagement in the changing world of work, (pages 103-119), Edward Elgar Publishing.
Awards
2023. ISF. 3-year Grant on the Topic of Engagement in the Gig Economy.
Best Doctoral Student Research Conference Paper Award of the Academy of Management.
From the Public and Nonprofit Division (AOM-PNP), Annual Meeting 2017, Atlanta, Georgia.Israel Institute Postdoctoral Fellowship, 2015, $51,000.
Scholarship for post-doctorate studies in Europe under Email II Erasmus Mundus Program.
From the European Commission at the Catholic University of Leuven, Department of Psychology, 2015, Belgium, EURO 22,000.Scholarship for Post-Doctorate Studies in Europe under EDEN Erasmus Mundus Education Network Program.
From the European Commission, 2015, EURO 12,800.PNP Best Article Honorable Mention
From the Best Article Award Committee of the Public and Nonprofit Division of the Academy of Management (AOM-PNP), 2014’s Annual Meeting.Vigoda-Gadot, E., Eldor, L., & Isaak, V. Research Grant.
From the Israel National Institute for Health Policy and Health Services: The Effect of Ethical climate and Employee Engagement on Quality of treatment and Service in Healthcare Organizations, 2015, NIS 200,000.Excellence Scholarship.
From the Rector of University of Haifa and Graduate Studies Authority, 2011, 2012, 2013, and 2014.The Shirom Award for Doctoral Proposal and Special excellence.
From the Recanati Foundation Dissertation Grant Award, 2013, Tel Aviv University, NIS 18,000.Winner of the 2013 Israeli Industrial Relations Research Association Award.
For the Best Master Organizational Psychology Thesis, NIS 3,000.Paper Publication Award for Peer-Reviewed Publishing during Ph.D studies.
From the Graduate Studies Authority, 2013, University of Haifa, NIS 3,000.