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On the Role of Pre-Determined Rules for HRM Policies

Author

Listed:
  • Silvia Dominguez Martinez

    (University of Amsterdam)

  • Otto H. Swank

    (Erasmus University Rotterdam)

Abstract

Using simple game-theoretical models, this paper studies the role of pre-determined rules for HRM policies. We consider a model in which HRM decisions affect employees' self-images and thereby their motivation. We show that in the absence of written rules, managers are too reluctant (1) to differentiate between employees on the basis of their abilities, and (2) to terminate employment of employees on probation. Generally, organizations benefit from committing to strict rules for various HRM practices.

Suggested Citation

  • Silvia Dominguez Martinez & Otto H. Swank, 2011. "On the Role of Pre-Determined Rules for HRM Policies," Tinbergen Institute Discussion Papers 11-034/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20110034
    as

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    References listed on IDEAS

    as
    1. Benoît S. Y. Crutzen & Otto H. Swank & Bauke Visser, 2013. "Confidence Management: On Interpersonal Comparisons in Teams," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(4), pages 744-767, December.
    2. Florian Ederer, 2010. "Feedback and Motivation in Dynamic Tournaments," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(3), pages 733-769, September.
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    4. Junichiro Ishida, 2006. "Optimal Promotion Policies with the Looking-Glass Effect," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 857-878, October.
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    6. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(3), pages 489-520.
    7. Prendergast, Canice & Topel, Robert, 1993. "Discretion and bias in performance evaluation," European Economic Review, Elsevier, vol. 37(2-3), pages 355-365, April.
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    More about this item

    Keywords

    rules; human resource management policies; self-image; motivation;
    All these keywords.

    JEL classification:

    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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