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This paper focuses on labor economics that one examines the relationship between Human Resource Management (HRM) and productivity. HRM includes incentive pay (individual and group) as well as many non-pay aspects of the employment relationship such as matching and work organization. They place HRM more generally within the literature on management practices and productivity. They start with some facts on levels and trends of both HRM and productivity and the main economic theories of HRM. They look at some of the determinants of HRM - risk, competition, ownership and regulation.
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