Personnel Economics in Practice

ABOUT THE AUTHORS PREFACE ACKNOWLEDGMENTS PART ONE SORTING AND INVESTING IN EMPLOYEES CHAPTER 1 SETTING HIRING STANDARDS An Example: Hiring Risky Workers New Hires as Options Analysis A Counterargument Setting Hiring Standards Balancing Benefits Against Costs Foreign Competition The Method of Production How Many Workers to Hire? Other Factors Making Decisions with Imperfect Information Make a Decision Independent of Analysis Estimate the Relevant Information Experiment Summary Study Questions References Further Reading Appendix (available online) CHAPTER 2 RECRUITMENT Introduction Screening Job Applicants Credentials Learning a Workers Productivity Is Screening Profitable? For Whom? Probation Signaling Who Pays, and Who Benefits? Examples Signaling More Formally: Separating and Pooling Equilibria Which Type of Firm is More Likely to use Signaling? Summary Study Questions References Further Reading Appendix (available online) CHAPTER 3 INVESTMENT IN SKILLS Introduction Matching Investments in Education Effects of Costs and Benefits Was Benjamin Franklin Correct? Investments in On the Job Training General vs. Firm-Specific Human Capital Who Should Pay for Training? Implications of On the Job Training Rent Sharing and Compensation Implicit Contracting Summary Study Questions References Further Reading Appendix (available online) CHAPTER 4 MANAGING TURNOVER Introduction Is Turnover Good or Bad? Importance of Sorting Technical Change Organizational Change Hierarchical Structure Specific Human Capital Retention Strategies Reducing Costs of Losing Key Employees Embracing Turnover Bidding for Employees Raiding Other Firms: Benefits and Pitfalls Offer Matching Layoffs and Buyouts Who to Target for Layoffs Buyouts Summary Study Questions References Further Reading Appendix (available online) PART TWO ORGANIZATIONAL AND JOB DESIGN CHAPTER 5 DECISION MAKING Introduction The Organization of an Economy Markets as Information Systems Markets as Incentive Systems Markets and Innovation Benefits of Central Planning The Market as Metaphor for Organizational Design Benefits of Centralization Economies of Scale or Public Goods Better Use of Central Knowledge Coordination Benefits of Decentralization Specific vs. General Knowledge Other Benefits of Decentralization Authority and Responsibility Decision Making as a Multistage Process Flat vs. Hierarchical Structures Investing in Better Quality Decision Making Summary Study Questions References Further Reading Appendix (available online) CHAPTER 6 ORGANIZATIONAL STRUCTURE Introduction Types of Organizational Structures Hierarchy Functional Structure Divisional Structure Matrix or Project Structure Network Structure Which Structure Should a Firm Use? Coordination Two Types of Coordination Problems Coordination Mechanisms Implementation Span of Control and Number of Levels in a Hierarchy Skills, Pay, and Structure Evolution of a Firms Structure Summary Study Questions References Further Reading CHAPTER 7 JOB DESIGN Introduction Patterns of Job Design Optimal Job Design: Skills, Tasks, and Decisions Multiskilling and Multitasking Decisions Complementarity and Job Design When to Use Different Job Designs Taylorism Factors Pushing Toward Taylorism or Continuous Improvement Intrinsic Motivation Summary Study Questions References Further Reading Appendix (available online) CHAPTER 8 ADVANCED JOB DESIGN Introduction Teams Group Decision Making Free Rider Effects When to Use Teams Other Benefits of Team Production Implementation of Teams Team Composition Worker-Owned Firms Effects of Information Technology Effects on Organizational Structure Effects on Job Design High Reliability Organizations Summary