Professional Documents
Culture Documents
Y =+ x
o
Y =earnings
=Starting Salary
=amount of increaseSalary
Firm-related
Firm-Size
Industry
Sector
Experience
Tenure
Occupation
Wages rates are higher in occupations that are more
difficult to learn i.e., human capital
Wages rate are higher for those who engage in unsafe
or risky occupations i.e., compensating wage
differentials
Types of Compensations Schemes: salary, hourly
wage, piece rates, salary plus bonus, profit sharing,
team bonuses
Firms profits (): = Q W
Production function (Q): Q = e +
Workers compensation (W): W = W0 + Q = W0 + (e
+ )
Workers cost function (C): C (e) = e2
What is the optimal level of effort (e)?
High-Commitment HRM
Individual Level
Gender
Education
Exchange Theory
o
There are Two Types of market transactions
Exchange Vs Social
o
Exchange
Inflexibility
Mediocrity
Bathtub model
o
Promotion as an incentive device
o
Promotion as a tournament
Discrimination
-
wf = wm - dr
Statistical
discrimination
o
Based on the use of observable variables to
make inferences about a relevant but
unobservable variable
o
Model assumes employers lack information
about the existence and characteristics of
workers
o
Reinforcement of statistical inferences lead to
stereotypes
o
Screening and signaling model
Employer perceptions are not value-neutral
Self-fulfilling prophecy
o
Feedback between belief and behavior can
cause a situation to become true
Equal opportunities
Equal outcomes
o
Affirmative action
Japanese HRM
- Employment model, characterized by low mobility and high
trust between workers and employers
- Barriers to mobility between firms in Japan
o
Worker protection
o
The importance of seniority in the pay structure
o
Lack of portability of firm-based pensions
o
Firm-size differentials, egalitarian pay norms and
mobility
o
Information problems
o
Problems specific to middle-aged and older workers
o
Regulations concerning fixed period labor contracts
- Barriers to increasing womens labor force participation
o
Government tax and benefit systems
o
Exclusion from the internal labor market (ILM)
o
Policies to reconcile work and family life: Public and
private initiatives
- Bathtub model of employment
Global HRM
- FDI in Japan
o
Given its historical past and institutional trajectory, the
default position towards FDI is inward-looking and
isolationist.
o
But in age of globalization, Japan really doesnt have
much choice.
- Foreign firms in Japan
o
face latecomer disadvantage (liability of foreignness) in
the host economy (less affected by reputation effects)
o
Do not have the patience to nurture
professionals/specialists through inhouse training
o
Compensating wage differential (Tradeoff between
higher earnings and lower employment security)
- Hirschs 5 maxims for American managers
o
Return recruiters calls, maintain marketability
o
Avoid overspecialization, maintain generality
o
Avoid long-term and group assignments, maintain
credibility
o
Cultivate networks, maintain visibility
o
Keep your bags packed, maintain mobility
Demographics
-