{"product_id":"personnel-economics-in-practice-3e-9781118206720","title":"Personnel Economics in Practice 3e","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003ePersonnel Economics in Practice, 3rd Edition by Edward Lazear and Michael Gibbs gives readers a rigorous framework for understanding organizational design and the management of employees.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003eABOUT THE AUTHORS vii    PREFACE ix    ACKNOWLEDGMENTS xv    PART ONE SORTING AND INVESTING IN EMPLOYEES 1    CHAPTER 1 SETTING HIRING STANDARDS 3    An Example: Hiring Risky Workers 3    New Hires as Options 3    Analysis 5    A Counterargument 7    Setting Hiring Standards 9    Balancing Benefits Against Costs 10    Foreign Competition 12    The Method of Production 13    How Many Workers to Hire? 16    Other Factors 17    Making Decisions with Imperfect Information 18    Make a Decision Independent of Analysis 18    Estimate the Relevant Information 19    Experiment 19    Summary 20    Study Questions 21    References 22    Further Reading 22    Appendix (available online) 22    CHAPTER 2 RECRUITMENT 25    Introduction 25    Screening Job Applicants 26    Credentials 27    Learning a Worker   s Productivity 28    Is Screening Profitable? For Whom? 31    Probation 32    Signaling 33    Who Pays, and Who Benefits? 36    Examples 37    Signaling More Formally: Separating and Pooling    Equilibria 38    Which Type of Firm is More Likely to use Signaling? 40    Summary 40    Study Questions 42    References 42    Further Reading 43    Appendix (available online) 43    CHAPTER 3 INVESTMENT IN SKILLS 47    Introduction 47    Matching 49    Investments in Education 50    Effects of Costs and Benefits 52    Was Benjamin Franklin Correct? 54    Investments in On the Job Training 57    General vs. Firm-Specific Human Capital 60    Who Should Pay for Training? 63    Implications of On the Job Training 69    Rent Sharing and Compensation 72    Implicit Contracting 74    Summary 75    Study Questions 77    References 78    Further Reading 78    Appendix (available online) 78    CHAPTER 4 MANAGING TURNOVER 81    Introduction 81    Is Turnover Good or Bad? 81    Importance of Sorting 82    Technical Change 83    Organizational Change 83    Hierarchical Structure 84    Specific Human Capital 84    Retention Strategies 84    Reducing Costs of Losing Key Employees 87    Embracing Turnover 88    Bidding for Employees 89    Raiding Other Firms: Benefits and Pitfalls 89    Offer Matching 93    Layoffs and Buyouts 96    Who to Target for Layoffs 96    Buyouts 99    Summary 104    Study Questions 105    References 105    Further Reading 106    Appendix (available online) 106    PART TWO ORGANIZATIONAL AND JOB DESIGN 107    CHAPTER 5 DECISION MAKING 109    Introduction 109    The Organization of an Economy 109    Markets as Information Systems 110    Markets as Incentive Systems 112    Markets and Innovation 112    Benefits of Central Planning 113    The Market as Metaphor for Organizational Design 114    Benefits of Centralization 117    Economies of Scale or Public Goods 117    Better Use of Central Knowledge 118    Coordination 118    Benefits of Decentralization 120    Specific vs. General Knowledge 120    Other Benefits of Decentralization 122    Authority and Responsibility 123    Decision Making as a Multistage Process 124    Flat vs. Hierarchical Structures 126    Investing in Better Quality Decision Making 133    Summary 136    Study Questions 138    References 138    Further Reading 139    Appendix (available online) 139    CHAPTER 6 ORGANIZATIONAL STRUCTURE 143    Introduction 143    Types of Organizational Structures 145    Hierarchy 145    Functional Structure 147    Divisional Structure 148    Matrix or Project Structure 153    Network Structure 155    Which Structure Should a Firm Use? 157    Coordination 158    Two Types of Coordination Problems 158    Coordination Mechanisms 160    Implementation 163    Span of Control and Number of Levels in a Hierarchy 163    Skills, Pay, and Structure 166    Evolution of a Firm   s Structure 167    Summary 168    Study Questions 170    References 170    Further Reading 171    CHAPTER 7 JOB DESIGN 173    Introduction 173    Patterns of Job Design 174    Optimal Job Design: Skills, Tasks, and Decisions 177    Multiskilling and Multitasking 177    Decisions 183    Complementarity and Job Design 184    When to Use Different Job Designs 186    Taylorism 186    Factors Pushing Toward Taylorism or Continuous Improvement 188    Intrinsic Motivation 192    Summary 194    Study Questions 197    References 197    Further Reading 198    Appendix (available online) 198    CHAPTER 8 ADVANCED JOB DESIGN 201    Introduction 201    Teams 202    Group Decision Making 202    Free Rider Effects 202    When to Use Teams 203    Other Benefits of Team Production 205    Implementation of Teams 209    Team Composition 212    Worker-Owned Firms 214    Effects of Information Technology 215    Effects on Organizational Structure 215    Effects on Job Design 219    High Reliability Organizations 222    Summary 224    Study Questions 226    References 226    Further Reading 227    Appendix (available online) 227    PART THREE PAYING FOR PERFORMANCE 231    CHAPTER 9 PERFORMANCE EVALUATION 237    Introduction 237    Purposes of Performance Evaluation 238    Ways to Evaluate Performance 238    Quantitative Performance Measurement 238    Risk Profile 239    Risk vs. Distortion: Performance Measure Scope 241    Match of the Performance Measure to Job Design 244    Manipulation 246    Subjective Evaluation 247    Why Use Subjective Evaluations? 248    The Benefits of Subjective Evaluations 251    Practical Considerations 253    Summary 257    Study Questions 258    References 259    Further Reading 259    CHAPTER 10 REWARDING PERFORMANCE 261    Introduction 261    How Strong Should Incentives Be? 264    Intuition 264    Imperfect Evaluations and Optimal Incentives 269    Summary: How Strong Should Incentives Be? 272    Paying for Performance: Common Examples 273    Rewards or Penalties? 273    Lump Sums, Demotions, or Promotions 276    Caps on Rewards 278    Applications 280    Profit Sharing and ESOPs 280    Organizational Form and Contracting 282    Motivating Creativity 284    Summary 285    Study Questions 286    References 287    Further Reading 287    Appendix (available online) 287    CHAPTER 11 CAREER-BASED INCENTIVES 293    Introduction 293    Promotions and Incentives 296    Should Promotions be Used as an Incentive System? 296    Promotion Rule: Tournament or Standard? 298    How Do Promotions Generate Incentives? 303    Advanced Issues 308    Turnover 312    Evidence 312    Career Concerns 313    Seniority Pay and Incentives 314    Practical Considerations 316    Summary 317    Study Questions 319    References 320    Further Reading 320    Appendix (available online)  321    CHAPTER 12 OPTIONS AND EXECUTIVE PAY 325    Introduction 325    Employee Stock Options 326    Stock Options   A Brief Overview 326    Should Firms Grant Employees Options? 327    Options as Incentive Pay 329    Executive Pay 333    What is the Most Important Question? 334    Executive Pay for Performance 334    Other Incentives \u0026amp; Controls 337    Do Executive Incentives Matter? 338    Summary 342    Employee Stock Options 342    Executive Pay 342    Study Questions 343    References 343    Further Reading 344    Appendix (available online) 344    PART FOUR APPLICATIONS 347    CHAPTER 13 BENEFITS 349    Introduction 349    Wages vs. Benefits 349    Why Offer Benefits? 353    Cost Advantage 353    Value Advantage 354    Government Mandate 356    Implementation of Benefits 357    Improving Employee Sorting 357    Cafeteria Plans 358    Pensions 360    Paid Time Off 368    Summary 371    Study Questions 372    References 373    Further Reading 373    CHAPTER 14 ENTREPRENEURSHIP AND INTRAPRENEURSHIP 375    Introduction 375    Entrepreneurship 376    The Choice to become an Entrepreneur 377    Intrapreneurship 385    Internal Markets 386    Creativity vs. Control 388    Speed of Decision Making 390    Reducing Bureaucracy 390    Continuous Improvement 391    Summary 393    Study Questions 393    References 394    Further Reading 395    Appendix (available online) 395    CHAPTER 15 THE EMPLOYMENT RELATIONSHIP 397    Introduction 397    Employment as an Economic Transaction 397    Perfect Competition 397    Imperfect Competition 398    Complex Contracting 400    Summary 402    Communication between Management andWorkers 403    Communication from Management to Workers 403    Communication from Workers to Management 405    The Decision to Empower Workers 408    Improving Cooperation 414    From the Prisoner   s Dilemma to Employment 417    Reputation and the Employment Relationship 418    Investing in Reputation 419    Summary 425    Personnel Economics in Practice 425    Study Questions 427    References 428    Further Reading 428    Appendix (available online) 429    GLOSSARY 435    INDEX 445","brand":"John Wiley \u0026 Sons","offers":[{"title":"Default Title","offer_id":51926168535383,"sku":"9781118206720","price":204.2,"currency_code":"GBP","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781118206720.jpg?v=1760622477","url":"https:\/\/bookcurl.com\/products\/personnel-economics-in-practice-3e-9781118206720","provider":"Book Curl","version":"1.0","type":"link"}