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Beyond Incentive Pay: Insiders’ Estimates of the Value of Complementary Human Resource Management Practices (2003)
| Venue: | Journal of Economic Perspectives |
| Citations: | 126 - 4 self |
BibTeX
@ARTICLE{Shaw03beyondincentive,
author = {Kathryn Shaw},
title = {Beyond Incentive Pay: Insiders’ Estimates of the Value of Complementary Human Resource Management Practices},
journal = {Journal of Economic Perspectives},
year = {2003},
pages = {155178}
}
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Abstract
Economists have written extensively on this question, often focusing on various types of incentive pay contracts aimed at eliciting greater effort from employees. This theoretical research identifies features of employment relationships that limit the effectiveness of simple piece-rate incentive pay plans and that force managers to consider other forms of incentive pay. In addition, managers introduce other human resource management practices, concerning employee training, hiring criteria, teamwork, job design, and employee hierarchies, that are aimed at eliciting optimal performance (see reviews in Gibbons, 1998; Gibbons and Waldman, 1999; Lazear, 1999; Murphy, 1999; and Prendergast, 1999). Still, without empirical evidence on businesses ’ human resource practices, it will remain an open question whether the theories proposed in “personnel economics [are] real or merely a series of clever models proposed by abstract thinkers who have little contact with reality ” (Lazear, 1999). In this study, we describe a new research approach – an approach we label “insider econometrics ” – that is aimed at producing empirical estimates of the value of alternative human resource management practices. This “insider ” approach goes deep
Keyphrases
complementary human resource management practice insider estimate beyond incentive pay theoretical research identifies feature human resource management practice employee training open question simple piece-rate incentive pay plan abstract thinker little contact empirical evidence personnel economics incentive pay contract business human resource practice job design various type alternative human resource management practice incentive pay new research approach clever model optimal performance insider approach employee hierarchy force manager insider econometrics empirical estimate employment relationship
