Book

Question 1

Classical wage theory

Answer 1

there is not much employers can do to use wages as a strategic instrument to attract talent

Question 1

Monopsony power meaning

Answer 1

employers have the power to set wages in a certain region because they are the only employer and workers have limited options to decline the wage offer this organization makes

Question 2

Efficient wage theory (by Stieglitzand Shapiro)

Answer 2

There is profit in higher wages becausethe higher costs of thesalaries pay for themselves in better performance of employees

When employers pay higher wages, they increase the norm for shirking

Retention advantage is made

Question 3

Shirking meaning

Answer 3

employees seek to get the highest rewards for the least possible effort

Question 4

Iterative decision-making process

Answer 4

logical sequence of rational decisions in the process: identify problem, collect evidence, generate solutions, implement

Question 5

Conscientiousness meaning

Answer 5

preference to work hard, neatly, completing all tasks.

Question 6

Types of social capital

Answer 6

-Structural social capital (number and pattern of connections that individuals or groups have with others
-Relational social capital (Quality of relations within a network ‘bonding’)
-Cognitive social capital (Overall climate in an organization regarding the goodwill to share info and trust each other