Thursday, February 6, 2014

Achieving Efficient Employment Relations - A study by Artur Victoria

In the best of all possible worlds, what would lead to economically efficient employment relations? We focus on three basic categories:

1. Efficient adaptation and coordination. The circumstances facing a firm change. Old opportunities go away and new opportunities appear. Employees discover both talents and shortcomings. Clearly, it benefits the firm (in the sense of producing value) if employees can be deployed and redeployed in ways that take advantage of these changing circumstances and new information. Moreover, because production is often interdependent, the actions of employees have to be coordinated. (When we write "have to be coordinated," it sounds as if we implicitly mean by the bosses. But we don't mean that; employees can, in some cases, do a very good job of coordinating themselves.)

2. Investing in productive human capital. Employer and employee can and sometimes do take actions that improve their ability to work productively together. For instance, the employee may take time and effort to build up a network of useful contacts in the organization, or he may try to acquire skills that are particularly useful in his current job. The employer can subsidize the employee's training, and she can provide opportunities for network building.leia todo o artigo