{"product_id":"personnel-economics-in-practice-isbn-9781118206720","title":"Personnel Economics in Practice","description":"\u003ci\u003ePersonnel Economics in Practice, 3rd Edition\u003c\/i\u003e by Edward Lazear and Michael Gibbs gives readers a rigorous framework for understanding organizational design and the management of employees.  Economics has proven to be a powerful approach in the changing study of organizations and human resources by adding rigor and structure and clarifying many important issues. Not only will readers learn and apply ideas from microeconomics, they will also learn principles that will be valuable in their future careers.  \u003cp\u003eABOUT THE AUTHORS iii\u003c\/p\u003e  \u003cp\u003ePREFACE v\u003c\/p\u003e  \u003cp\u003eACKNOWLEDGMENTS ix\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePART ONE SORTING AND INVESTING IN EMPLOYEES 1\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 1 SETTING HIRING STANDARDS 3\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eAn Example: Hiring RiskyWorkers 3\u003c\/p\u003e  \u003cp\u003eNew Hires as Options 3\u003c\/p\u003e  \u003cp\u003eAnalysis 5\u003c\/p\u003e  \u003cp\u003eA Counterargument 7\u003c\/p\u003e  \u003cp\u003eSetting Hiring Standards 9\u003c\/p\u003e  \u003cp\u003eBalancing Benefits Against Costs 9\u003c\/p\u003e  \u003cp\u003eForeign Competition 11\u003c\/p\u003e  \u003cp\u003eThe Method of Production 12\u003c\/p\u003e  \u003cp\u003eHow Many Workers to Hire? 15\u003c\/p\u003e  \u003cp\u003eOther Factors 16\u003c\/p\u003e  \u003cp\u003eMaking Decisions with Imperfect Information 17\u003c\/p\u003e  \u003cp\u003eMake a Decision Independent of Analysis 17\u003c\/p\u003e  \u003cp\u003eEstimate the Relevant Information 17\u003c\/p\u003e  \u003cp\u003eSummary 19\u003c\/p\u003e  \u003cp\u003eStudy Questions 20\u003c\/p\u003e  \u003cp\u003eReferences 21\u003c\/p\u003e  \u003cp\u003eFurther Reading 21\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 2 RECRUITMENT 22\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eScreening Job Applicants 24\u003c\/p\u003e  \u003cp\u003eCredentials 25\u003c\/p\u003e  \u003cp\u003eLearning a Worker’s Productivity 26\u003c\/p\u003e  \u003cp\u003eFor Whom Is Screening Profitable? 28\u003c\/p\u003e  \u003cp\u003eProbation 30\u003c\/p\u003e  \u003cp\u003eSignaling 32\u003c\/p\u003e  \u003cp\u003eWho Pays and Who Benefits? 35\u003c\/p\u003e  \u003cp\u003eExamples 35\u003c\/p\u003e  \u003cp\u003eSignaling More Formally: Separating and Pooling Equilibria 36\u003c\/p\u003e  \u003cp\u003eWhich Type of Firm Is More Likely to Use Signaling? 38\u003c\/p\u003e  \u003cp\u003eSummary 38\u003c\/p\u003e  \u003cp\u003eStudy Questions 40\u003c\/p\u003e  \u003cp\u003eReferences 40\u003c\/p\u003e  \u003cp\u003eFurther Reading 41\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 3 INVESTMENT IN SKILLS 42\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eMatching 44\u003c\/p\u003e  \u003cp\u003eInvestments in Education 45\u003c\/p\u003e  \u003cp\u003eEffects of Costs and Benefits 47\u003c\/p\u003e  \u003cp\u003eWas Benjamin Franklin Correct? 49\u003c\/p\u003e  \u003cp\u003eInvestments in On-the-Job Training 51\u003c\/p\u003e  \u003cp\u003eGeneral versus Firm-Specific Human Capital 54\u003c\/p\u003e  \u003cp\u003eWho Should Pay for Training? 56\u003c\/p\u003e  \u003cp\u003eImplications of On-the-Job Training 61\u003c\/p\u003e  \u003cp\u003eRent Sharing and Compensation 63\u003c\/p\u003e  \u003cp\u003eSummary 66\u003c\/p\u003e  \u003cp\u003eStudy Questions 67\u003c\/p\u003e  \u003cp\u003eReferences 68\u003c\/p\u003e  \u003cp\u003eFurther Reading 68\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 4 MANAGING TURNOVER 69\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eIs Turnover Good or Bad? 69\u003c\/p\u003e  \u003cp\u003eImportance of Sorting 70\u003c\/p\u003e  \u003cp\u003eTechnical Change 70\u003c\/p\u003e  \u003cp\u003eOrganizational Change 71\u003c\/p\u003e  \u003cp\u003eHierarchical Structure 71\u003c\/p\u003e  \u003cp\u003eSpecific Human Capital 71\u003c\/p\u003e  \u003cp\u003eRetention Strategies 72\u003c\/p\u003e  \u003cp\u003eReducing Costs of Losing Key Employees 73\u003c\/p\u003e  \u003cp\u003eEmbracing Turnover 75\u003c\/p\u003e  \u003cp\u003eBidding for Employees 76\u003c\/p\u003e  \u003cp\u003eRaiding Other Firms: Benefits and Pitfalls 76\u003c\/p\u003e  \u003cp\u003eOffer Matching 80\u003c\/p\u003e  \u003cp\u003eLayoffs and Buyouts 82\u003c\/p\u003e  \u003cp\u003eWho to Target for Layoffs 83\u003c\/p\u003e  \u003cp\u003eBuyouts 86\u003c\/p\u003e  \u003cp\u003eSummary 90\u003c\/p\u003e  \u003cp\u003eStudy Questions 91\u003c\/p\u003e  \u003cp\u003eReferences 91\u003c\/p\u003e  \u003cp\u003eFurther Reading 92\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePART TWO ORGANIZATIONAL AND JOB DESIGN 93\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 5 DECISION MAKING 95\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eThe Organization of an Economy 95\u003c\/p\u003e  \u003cp\u003eMarkets as Information Systems 96\u003c\/p\u003e  \u003cp\u003eMarkets as Incentive Systems 98\u003c\/p\u003e  \u003cp\u003eMarkets and Innovation 98\u003c\/p\u003e  \u003cp\u003eBenefits of Central Planning 98\u003c\/p\u003e  \u003cp\u003eThe Market as Metaphor for Organizational Design 100\u003c\/p\u003e  \u003cp\u003eBenefits of Centralization 102\u003c\/p\u003e  \u003cp\u003eEconomies of Scale or Public Goods 102\u003c\/p\u003e  \u003cp\u003eBetter Use of Central Knowledge 103\u003c\/p\u003e  \u003cp\u003eCoordination 103\u003c\/p\u003e  \u003cp\u003eControl 104\u003c\/p\u003e  \u003cp\u003eBenefits of Decentralization 105\u003c\/p\u003e  \u003cp\u003eSpecific versus General Knowledge 105\u003c\/p\u003e  \u003cp\u003eOther Benefits of Decentralization 107\u003c\/p\u003e  \u003cp\u003eDecision Management and Control 108\u003c\/p\u003e  \u003cp\u003eDecision Making as a Multistage Process 108\u003c\/p\u003e  \u003cp\u003eCreativity versus Control 110\u003c\/p\u003e  \u003cp\u003eInvesting in Better-Quality Decision Making 118\u003c\/p\u003e  \u003cp\u003eSummary 121\u003c\/p\u003e  \u003cp\u003eStudy Questions 123\u003c\/p\u003e  \u003cp\u003eReferences 123\u003c\/p\u003e  \u003cp\u003eFurther Reading 124\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 6 ORGANIZATIONAL STRUCTURE 125\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eTypes of Organizational Structures 126\u003c\/p\u003e  \u003cp\u003eHierarchy 126\u003c\/p\u003e  \u003cp\u003eFunctional Structure 128\u003c\/p\u003e  \u003cp\u003eDivisional Structure 129\u003c\/p\u003e  \u003cp\u003eMatrix or Project Structure 133\u003c\/p\u003e  \u003cp\u003eNetwork Structure 136\u003c\/p\u003e  \u003cp\u003eWhich Structure Should a Firm Use? 139\u003c\/p\u003e  \u003cp\u003eCoordination 140\u003c\/p\u003e  \u003cp\u003eTwo Types of Coordination Problems 140\u003c\/p\u003e  \u003cp\u003eCoordination Mechanisms 142\u003c\/p\u003e  \u003cp\u003eImplementation 145\u003c\/p\u003e  \u003cp\u003eSpan of Control and Number of Levels in a Hierarchy 145\u003c\/p\u003e  \u003cp\u003eSkills, Pay, and Structure 148\u003c\/p\u003e  \u003cp\u003eEvolution of a Firm’s Structure 149\u003c\/p\u003e  \u003cp\u003eSummary 150\u003c\/p\u003e  \u003cp\u003eStudy Questions 152\u003c\/p\u003e  \u003cp\u003eReferences 153\u003c\/p\u003e  \u003cp\u003eFurther Reading 154\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 7 JOB DESIGN 155\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003ePatterns of Job Design 155\u003c\/p\u003e  \u003cp\u003eOptimal Job Design: Skills, Tasks, and Decisions 159\u003c\/p\u003e  \u003cp\u003eMultiskilling and Multitasking 159\u003c\/p\u003e  \u003cp\u003eDecisions 163\u003c\/p\u003e  \u003cp\u003eComplementarity and Job Design 164\u003c\/p\u003e  \u003cp\u003eWhen to Use Different Job Designs 165\u003c\/p\u003e  \u003cp\u003eTaylorism 166\u003c\/p\u003e  \u003cp\u003eFactors Pushing Toward Taylorism or Continuous Improvement 168\u003c\/p\u003e  \u003cp\u003eIntrinsic Motivation 171\u003c\/p\u003e  \u003cp\u003eSummary 173\u003c\/p\u003e  \u003cp\u003eStudy Questions 175\u003c\/p\u003e  \u003cp\u003eReferences 176\u003c\/p\u003e  \u003cp\u003eFurther Reading 177\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 8 ADVANCED JOB DESIGN 178\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eTeams 179\u003c\/p\u003e  \u003cp\u003eGroup Decision Making 179\u003c\/p\u003e  \u003cp\u003eFree Rider Effects 179\u003c\/p\u003e  \u003cp\u003eWhen to Use Teams 180\u003c\/p\u003e  \u003cp\u003eOther Benefits of Team Production 181\u003c\/p\u003e  \u003cp\u003eImplementation of Teams 186\u003c\/p\u003e  \u003cp\u003eTeam Composition 187\u003c\/p\u003e  \u003cp\u003eEffects of Information Technology 190\u003c\/p\u003e  \u003cp\u003eEffects on Organizational Structure 190\u003c\/p\u003e  \u003cp\u003eEffects on Job Design 193\u003c\/p\u003e  \u003cp\u003eHigh-Reliability Organizations 196\u003c\/p\u003e  \u003cp\u003eSummary 198\u003c\/p\u003e  \u003cp\u003eStudy Questions 199\u003c\/p\u003e  \u003cp\u003eReferences 200\u003c\/p\u003e  \u003cp\u003eFurther Reading 200\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePART THREE PAYING FOR PERFORMANCE 201\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 9 PERFORMANCE EVALUATION 207\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003ePurposes of Performance Evaluation 208\u003c\/p\u003e  \u003cp\u003eWays to Evaluate Performance 208\u003c\/p\u003e  \u003cp\u003eQuantitative Performance Measurement 208\u003c\/p\u003e  \u003cp\u003eRisk Profile 209\u003c\/p\u003e  \u003cp\u003eDistortion 210\u003c\/p\u003e  \u003cp\u003eManipulation 214\u003c\/p\u003e  \u003cp\u003eMatch of the Performance Measure to Job Design 215\u003c\/p\u003e  \u003cp\u003eSubjective Evaluation 218\u003c\/p\u003e  \u003cp\u003eWhy Use Subjective Evaluations? 219\u003c\/p\u003e  \u003cp\u003eReduce Distortion and Manipulation 220\u003c\/p\u003e  \u003cp\u003ePractical Considerations 222\u003c\/p\u003e  \u003cp\u003eSummary 227\u003c\/p\u003e  \u003cp\u003eStudy Questions 228\u003c\/p\u003e  \u003cp\u003eReferences 229\u003c\/p\u003e  \u003cp\u003eFurther Reading 229\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 10 REWARDING PERFORMANCE 230\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eHow Strong Should Incentives Be? 233\u003c\/p\u003e  \u003cp\u003eIntuition 233\u003c\/p\u003e  \u003cp\u003eImperfect Evaluations and Optimal Incentives 237\u003c\/p\u003e  \u003cp\u003eSummary: How Strong Should Incentives Be? 242\u003c\/p\u003e  \u003cp\u003ePaying for Performance: Common Examples 243\u003c\/p\u003e  \u003cp\u003eRewards or Penalties? 243\u003c\/p\u003e  \u003cp\u003eLump Sums, Demotions, or Promotions 246\u003c\/p\u003e  \u003cp\u003eCaps on Rewards 249\u003c\/p\u003e  \u003cp\u003eApplications 251\u003c\/p\u003e  \u003cp\u003eProfit Sharing and ESOPs 251\u003c\/p\u003e  \u003cp\u003eOrganizational Form and Contracting 253\u003c\/p\u003e  \u003cp\u003eMotivating Creativity 254\u003c\/p\u003e  \u003cp\u003eSummary 255\u003c\/p\u003e  \u003cp\u003eStudy Questions 256\u003c\/p\u003e  \u003cp\u003eReferences 257\u003c\/p\u003e  \u003cp\u003eFurther Reading 257\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 11 CAREER-BASED INCENTIVES 258\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003ePromotions and Incentives 261\u003c\/p\u003e  \u003cp\u003eShould Promotions Be Used as an Incentive System? 261\u003c\/p\u003e  \u003cp\u003ePromotion Rule: Tournament or Standard? 262\u003c\/p\u003e  \u003cp\u003eHow Do Promotions Generate Incentives? 267\u003c\/p\u003e  \u003cp\u003eAdvanced Issues 271\u003c\/p\u003e  \u003cp\u003eEvidence 275\u003c\/p\u003e  \u003cp\u003eCareer Concerns 276\u003c\/p\u003e  \u003cp\u003eSeniority Pay and Incentives 276\u003c\/p\u003e  \u003cp\u003ePractical Considerations 278\u003c\/p\u003e  \u003cp\u003eSummary 279\u003c\/p\u003e  \u003cp\u003eStudy Questions 281\u003c\/p\u003e  \u003cp\u003eReferences 282\u003c\/p\u003e  \u003cp\u003eFurther Reading 282\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 12 OPTIONS AND EXECUTIVE PAY 284\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eEmployee Stock Options 285\u003c\/p\u003e  \u003cp\u003eStock Options–A Brief Overview 285\u003c\/p\u003e  \u003cp\u003eShould Firms Grant Employees Options? 286\u003c\/p\u003e  \u003cp\u003eOptions as Incentive Pay 288\u003c\/p\u003e  \u003cp\u003eExecutive Pay 293\u003c\/p\u003e  \u003cp\u003eWhat Is the Most Important Question? 293\u003c\/p\u003e  \u003cp\u003eExecutive Pay for Performance 295\u003c\/p\u003e  \u003cp\u003eOther Incentives and Controls 297\u003c\/p\u003e  \u003cp\u003eDo Executive Incentives Matter? 299\u003c\/p\u003e  \u003cp\u003eSummary 302\u003c\/p\u003e  \u003cp\u003eEmployee Stock Options 302\u003c\/p\u003e  \u003cp\u003eExecutive Pay 303\u003c\/p\u003e  \u003cp\u003eStudy Questions 303\u003c\/p\u003e  \u003cp\u003eReferences 304\u003c\/p\u003e  \u003cp\u003eFurther Reading 304\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePART FOUR APPLICATIONS 307\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 13 BENEFITS 309\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eWages versus Benefits 309\u003c\/p\u003e  \u003cp\u003eWhy Offer Benefits? 312\u003c\/p\u003e  \u003cp\u003eCost Advantage 312\u003c\/p\u003e  \u003cp\u003eValue Advantage 313\u003c\/p\u003e  \u003cp\u003eGovernment Mandate 315\u003c\/p\u003e  \u003cp\u003eImplementation of Benefits 316\u003c\/p\u003e  \u003cp\u003eImproving Employee Sorting 316\u003c\/p\u003e  \u003cp\u003eCafeteria Plans 317\u003c\/p\u003e  \u003cp\u003ePensions 319\u003c\/p\u003e  \u003cp\u003ePaid Time Off 327\u003c\/p\u003e  \u003cp\u003eSummary 329\u003c\/p\u003e  \u003cp\u003eStudy Questions 331\u003c\/p\u003e  \u003cp\u003eReferences 331\u003c\/p\u003e  \u003cp\u003eFurther Reading 332\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 14 ENTREPRENEURSHIP AND INTRAPRENEURSHIP 333\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eEntrepreneurship 334\u003c\/p\u003e  \u003cp\u003eThe Choice to Become an Entrepreneur 335\u003c\/p\u003e  \u003cp\u003eIntrapreneurship 344\u003c\/p\u003e  \u003cp\u003eInternal Markets 345\u003c\/p\u003e  \u003cp\u003eCreativity versus Control 347\u003c\/p\u003e  \u003cp\u003eRecruiting 347\u003c\/p\u003e  \u003cp\u003eMotivating Creativity 348\u003c\/p\u003e  \u003cp\u003eSpeed of Decision Making 350\u003c\/p\u003e  \u003cp\u003eReducing Bureaucracy 350\u003c\/p\u003e  \u003cp\u003eContinuous Improvement 351\u003c\/p\u003e  \u003cp\u003eSummary 353\u003c\/p\u003e  \u003cp\u003eStudy Questions 353\u003c\/p\u003e  \u003cp\u003eReferences 354\u003c\/p\u003e  \u003cp\u003eFurther Reading 355\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eCHAPTER 15 THE EMPLOYMENT RELATIONSHIP 356\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eEmployment as an Economic Transaction 356\u003c\/p\u003e  \u003cp\u003ePerfect Competition 356\u003c\/p\u003e  \u003cp\u003eImperfect Competition 357\u003c\/p\u003e  \u003cp\u003eComplex Contracting 358\u003c\/p\u003e  \u003cp\u003eSummary 361\u003c\/p\u003e  \u003cp\u003eCommunication between Management andWorkers 362\u003c\/p\u003e  \u003cp\u003eCommunication from Management to Workers 362\u003c\/p\u003e  \u003cp\u003eCommunication from Workers to Management 364\u003c\/p\u003e  \u003cp\u003eThe Optimal Level of Worker Consultation 366\u003c\/p\u003e  \u003cp\u003eImproving Cooperation 370\u003c\/p\u003e  \u003cp\u003eFrom the Prisoner’s Dilemma to Employment 372\u003c\/p\u003e  \u003cp\u003eReputation and the Employment Relationship 374\u003c\/p\u003e  \u003cp\u003eInvesting in Reputation 375\u003c\/p\u003e  \u003cp\u003eSummary 381\u003c\/p\u003e  \u003cp\u003ePersonnel Economics in Practice 381\u003c\/p\u003e  \u003cp\u003eStudy Questions 383\u003c\/p\u003e  \u003cp\u003eReferences 383\u003c\/p\u003e  \u003cp\u003eFurther Reading 384\u003c\/p\u003e  \u003cp\u003eAppendix (available online)\u003c\/p\u003e  \u003cp\u003eGLOSSARY 385\u003c\/p\u003e  \u003cp\u003eINDEX 393\u003c\/p\u003e \u003cb\u003eEdward P. Lazear\u003c\/b\u003e, senior fellow at the Hoover Institution of War, Revolution and Peace since 1985, is also the Jack Steele Parker Professor of Human Resources, Management and Economics at Stanford University's Graduate School of Business. Current and founding editor of the Journal of Labor Economics, and past president of the Society of Labor Economists, Professor Lazear is the visionary leader in the field of human resource management. \u003cp\u003e\u003cb\u003eMichael Gibbs\u003c\/b\u003e is Clinical Professor of Economics at the University of Chicago Graduate School of Business. Gibbs earned his PhD in Economics from the University of Chicago. He is a leading empirical researcher in the field of personnel economics, and has received awards for excellence in research and teaching.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989768913125,"sku":"NP9781118206720","price":183.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118206720.jpg?v=1761785408","url":"https:\/\/k12savings.com\/products\/personnel-economics-in-practice-isbn-9781118206720","provider":"K12savings","version":"1.0","type":"link"}