Socio-economic Research in Personnel versus Personnel Economics |
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Authors: | Werner Nienhueser |
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Institution: | Department of Economics, University of Duisburg-Essen, Chair of Work, Human Resource Management and Organization Universitaetsstr. 11, Essen 45117, Germany |
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Abstract: | This paper argues that personnel economics is still dominated by the assumptions of orthodox microeconomics, and also that newer fields such as transaction cost theory are far removed from socio-economics. Personnel economics is characterised by assumptions of unbounded rationality, stable preferences and functioning markets; power differences are seen as unimportant for explanations. By contrast, a socio-economic perspective works with the assumption of bounded rationality; it takes preferences into account, assumes that markets are characterised by ‘non-equilibrium’ states and power differences. The paper outlines a socio-economic mode of explanation and suggests that any explanation should include assumptions about three theoretical mechanisms: pursuit of utility, power and sense-making. |
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Keywords: | personnel economics socio-economics microeconomics |
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