WDW101Y1 Lecture Notes - Lecture 10: Human Capital, Mechanism Design, Reservation Wage
25 Mar 2016
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Document Summary
Core competencies: form the foundation for successful performance at all jobs in the organization. Competency sets: translate each core competency into action. Competency indicators: observable behaviors that indicate the levels of competency within each set. 2. to control the cost to attract and retain employees. Labor costs= pay level * number of employees (compilation of the base salary) Marginal revenue of labor: the additional revenue generated by each additional unit of human resources, with other production factors held constant. Compensating differentials theory: the idea that higher wages must be offered to compensate for negative features of jobs efficiency wage theory: high wages may increase efficiency and lower labor costs by attracting higher quality applicants who will work harder. Efficiency wage theory: high wage may increase efficiency and actually lower labor costs if they: attract higher-quality applicants. 5. lower turnover increase worker effort reduce shrinking (what economists say when they mean slacking off ) reduce the need to supervise employees.
