Economics of Human Resources

1. Economics of Human Resources Nick Bloom (Stanford Economics) Lecture 4: Incentives management

2. Incentives (people) management Today we will run through 6 dimensions on incentives management (part of HR and talent management) The concept is around the management and motivation of people As before, while the data is mainly for manufacturing, these questions have been used in retail, hospitals, schools, healthcare clinics, tax collection agencies, charities, PPPs and law firms 2

3. (15) Removing poor performers

4. (15) Removing poor performers

5. The survey scores to question (15), removing poor performers – all countries, manufacturing Average 3.11 All countries, manufacturing firms (100 to 5000 employees), 9820 observations

6. The survey scores to question (15), removing poor performers – USA, manufacturing Average 3.73 Manufacturing firms (100 to 5000 employees), 1291 observations

7. The survey scores to question (15), removing poor performers – Japan, manufacturing Average 2.78 Manufacturing firms (100 to 5000 employees), 176 observations

8. The survey scores to question (15), removing poor performers – France, manufacturing Average 2.90 Manufacturing firms (100 to 5000 employees), 605 observations

9. The survey scores to question (15), removing poor performers – India, manufacturing Average 2.81 Manufacturing firms (100 to 5000 employees), 1135 observations

10. The survey scores to question (15), removing poor performers – US, Canada and UK, retail Average 3.03 All countries, retail firms (100 to 5000 employees)660 observations

11. The survey scores to question (15), removing poor performers: developed countries, hospitals Average 2.56 Hospitals, Canada, France, Germany, Italy, Sweden, UK, US, 1183 observations

12. The survey scores to question (15), removing poor performers: developed countries, schools Average 2.50 Schools in Canada, Germany, Sweden, UK, US777 observations

13. (14) Rewarding high-performance

14. (14) Rewarding high performance

15. The survey scores to question (14), rewarding high performance – all countries, manufacturing Average 2.61 All countries, manufacturing firms (100 to 5000 employees), 9820 observations

16. The survey scores to question (14), rewarding high performance: developed countries, hospitals Average 2.31 Hospitals, Canada, France, Germany, Italy, Sweden, UK, US, 1183 observations

17. The survey scores to question (14), rewarding high performance: developed countries, schools Average 2.18 Schools in Canada, Germany, Sweden, UK, US777 observations

18. (16) Promoting high performers

19. (16) Promoting high performers

20. The survey scores to question (16), promoting high performers – all countries, manufacturing Average 3.02 All countries, manufacturing firms (100 to 5000 employees), 9820 observations

21. The survey scores to question (16), promoting high performers: developed countries, hospitals Average 2.44 Hospitals, Canada, France, Germany, Italy, Sweden, UK, US, 1183 observations

22. The survey scores to question (16), promoting high performers : developed countries, schools Average 2.41 Schools in Canada, Germany, Sweden, UK, US777 observations

23. (17) Attracting human capital

24. (17) Attracting human capital

25. The survey scores to question (17), attracting human capital – all countries, manufacturing Average 3.06 All countries, manufacturing firms (100 to 5000 employees), 9739 observations

26. (18) Retaining human capital

27. (18) Retaining human capital

28. The survey scores to question (18), retaining human capital – all countries, manufacturing Average 2.55 All countries, manufacturing firms (100 to 5000 employees), 9782 observations

29. (13) Managing human capital

30. (13) Managing human capital

31. The survey scores to question (13), managing human capital – all countries, manufacturing Average 2.43 All countries, manufacturing firms (100 to 5000 employees), 9806 observations

32. (7) Consequence management

33. (7) Consequence management

34. The survey scores to question (7), consequence management – all countries, manufacturing Average 3.56 All countries, manufacturing firms (100 to 5000 employees), 9820 observations

35. My favourite quotes The traditional British Chat-Up [Male manager speaking to an Australian female interviewer] Production Manager: “Your accent is really cute and I love the way you talk. Do you fancy meeting up near the factory?” Interviewer “Sorry, but I’m washing my hair every night for the next month….”

36. My favourite quotes The traditional Indian Chat-Up Production Manager: “Are you a Brahmin?’ Interviewer “Yes, why do you ask?” Production manager “And are you married?” Interviewer “No?” Production manager “Excellent, excellent, my son is looking for a bride and I think you could be perfect. I must contact your parents to discuss this”