Economics 4999 Prof. Jeffrey S. Zax

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University of Colorado ·· Boulder Department of Economics

Syllabus and Schedule 14 January 1993

Welcome. I am Prof. Jeffrey S. Zax. This is Economics 4999, The Economics of Hlllllan Resource Management. This class will meet on Mondays, Wednesdays and Fridays from 12:00 noon until 12:50 p.m. throughout the semester in Economics 16. I will hold regular office hours between 11:00 a.m. and 12:00 noon on Mondays and Wednesdays in my office, Economics 111. Appointments can be made for meetings at other times, if these are inconvenient.

The purpose of this course is to explore the relationships between hlllllan resources, employee relations and company economic success, both from practical and theoretical points of view. The course is built around case studies regarding these relationships. The readings for this course fall in several categories:

1. Photocopies of the cases may be purchased at the UMC bookstore.

2. Journal articles are in the Periodical Room of Norlin Library.

3. The book by Ehrenberg and Smith, the chapter by Freeman and Medoff and the chapter by Williamson are available at the reserve desk of Norlin Library, under Economics 4999.

The details of this. course are as follows: The "Tentative schedule and syllabus" describes the schedule for the semester. The actual schedule may vary depending on class progress. Some additional readings and assignments may be announced later, as well.

The "Tentative summary of assignments" lists all assignments, their due dates and the number of points alloted to each. The assignments provide a total of 480 points. Final grades will be assigned on the basis of the comparison between the nlllllber of points achieved and the score that would be achieved by a diligent student of the subject.

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Tentative schedule and syllabus:

I. 8/25 - Introduction

II. Conventional static analysis of labor markets

A. Dates

1. 8/27 - lecture 2. 8/30 - lecture 3. 9/1 - lecture 4. 9/3 - lecture 5. 9/8 - lecture 6. 9/10 - lecture 7. 9/13 - lecture

B. reading - Ehrenberg, Ronald G. and Robert S. Smith, Modern Labor Economics: Theory and Public Policy, Scott, Foresman and Company, Glenview, Illinois 1988, Chapters 3-7, on reserve.

III. the problems of human resource management

A. dates

1. 9/15 - Lynn Pump case discussion 2. 9/1 7 - Lynn Pump case discussion

B. reading - Lazear, Edward P., "Labor economics and the psychology of organiza­tions", The Journal of Economic Perspectives, Vol. 5, No. 2, Spring 1991, pgs. 89-110.

IV. The stages of employment

A. recruitment and hiring

1. 9/1 7 - lecture 2. 9/20

a . lecture b. hand in 3 page analysis of Lynn Pump case

B. evaluation

1. 9/22 - lecture 2. 9/24 - lecture

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C. compensation and motivation

1. Dates

a . 9/24 - lecture b. 9/27

i. lecture ii. Merck case part A discussion

c. 9/29 - Merck case parts A and B discussion d. 10/1

i. lecture ii. hand in 3 page analysis for Merck case

e. 10/4 - lecture f. 10/6 - Mary Kay Cosmetics case discussion and video g. 10/8 - Mary Kay Cosmetics case discussion and video

2. reading

a. Carmichael, H. Lorne, "Self-enforcing contracts, shirking, and life cycle incentives", The Journal of Economic Perspectives, Vol. 3, No. 4, Fall 1989, pgs. 65-84.

b. Sappington, David E.M., "Incentives in principal-agent relationships", The Journal of Economic Perspectives, Vol. 5, No. 2, Spring 1991, pgs. 45-66.

D. training

1. 10/8 - lecture 2. 10/11

a. lecture b. hand in 3 page analysis for Mary Kay Cosmetics case

E. promotion 1. 10/13 - lecture 2. 10/15 - lecture

F. turnover 1. 10/15 - lecture 2. 10/18 - lecture

V. Managing the workforce

A. workplace organization, job analysis and design

1. dates

a. 10/20 - Expense Tracking case b. 10/22

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i. Expense Tracking case ii. lecture

c. 10/25 i. hand in 3 page analysis of Expense Tracking case ii. lecture

d. 10/27 - Mutual Benefit Life case e. 10/29 - Mutual Benefit Life case

2. readings

a . Coase, Ronald H. , "The nature of the firm", Economica, Vol. 4, November 1937, pgs. 386-405.

b. Williamson, Oliver E., "The firm as a nexus of treaties: An introduction", pgs. 1 -25 in The firm as a nexus of treaties, Masahiko Aoki, Bo Gustafsson and Oliver E. Williamson, eds. , Sage Publications, Newbury Park, California, 1990.

B. participation/control/authority

1. dates

a. 10/29 - lecture b. 11/1

i. hand in 3 page analysis of Mutua l Benefit Life case ii. NUMMI case

c. 11/3 i. NUMMI case ii. lecture

d. 1115 i. lecture ii. hand in 3 page analysis of NUMMI case

e. 11/8 - Gulflands case f. 11/10

i. Gulflands case ii. lecture

g. 11/12 i. lecture ii. h and in 3 page analysis of Gulflands case

2. readings

a. Marglin, Stephen, "What do bosses do? The origins and functions of hierar­chy in capitalist production", Review of Radical Political Economy, Vol. 6, No. 2, Summer 1974, pgs. 60-112.

b. Landes, David, "What do bosses really do?", The Journal of Economic Histo­r:L Vol. 46, No. 3, September 1986, pgs. 585-623.

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D. commitment

1. 11/1. 2 - IBM case 2. 11/1. 5 - IBM case

E. discrimination

1. dates

a . 11/1. 7 i. hand in 3 page analysis of IBM case ii. lecture

b. 11/19 i. lecture

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ii. Santa Clara County Transportation Agency case c. 11/22 - Santa Clara County Transportation Agency case d. 11/24

i. lecture ii. hand in 3 page analysis of Santa Clara Transportation Agency case

e. 11/29 - lecture

2. readings

a . Jaynes, Gerald D., "The labor market status of black Americans: 1939-1985" The Journal of Economic Perspectives, Vol. 4, No. 4, Fall 1990, pgs. 9-24.

b. Smith, James P. and Michael Ward, "Women in the labor market and in the family", The Journal of Economic Perspectives, Vol. 3, No. 1, Winter 1989, pgs. 9-24.

c. Bergmann, Barbara R., "Does the market for women's labor need fixing", The Journal of Economic Perspectives, Vol. 3, No. 1, Winter 1989, pgs. 43-60.

F. unionization

1. dates

a. 11/29 - lecture b. 12/1. - lecture c. 12/3 - Toshiba Consumer Products case d. 12/6

i. Toshiba Consumer Products case ii. lecture

e. 12/8 i. hand in 3 page analysis of Toshiba Conswner Products case ii. lecture

2. reading

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a. Freeman, Richard B. and James L. Medoff, What Do Unions Do? Basic Books, Inc., New York, 1984, Chapter 1.

b. Freeman, Richard B., "Contraction and expansion: The divergence of private sector and public sector unionism in the United States", The Journal of Economic Perspectives, Vol. 2, No. 2, Spring 1983, pgs. 63-88.

VII. Final examination

A. Date - 12/13, 9:00a.m.-10:30a.m. B. assignment

1. take-home component - 7 page written analysis of the People's Express Case examination, due at final examination

2. in-class component - essay examination concentrating on material in readings and lectures

Summary of assignments:

discussion paper paper Title date length date points 1. Lynn Pump case 9/15,9/17 3 9/20 30 2. Merck case 9/27,9/29 3 10/1 30 3. Mary Kay Cosmetics case 10/6,10/8 3 10/11 30 4. Expense Tracking case 10/20,10/22 3 10/25 30 5. Mutual Benefit Life case 10/27,10/29 3 11/1 30 6. NUMMI case 11/1,11/3 3 11/5 30 7. Gulflands case 11/8,11/10 3 11/12 30 8. IBM case 11/12,11/15 3 11/17 30 9. Santa Clara County

Transportation Agency case 11/19,11/22 3 11/24 30 10. Toshiba Consumer

Products case 12/3,12/6 3 12/8 30 11. Peoples Express none 7 12/13 90

12.Finalexamination 12/13 90

Total points 480

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