On the Role of Pre-Determined Rules for HRM Policies

Tinbergen Institute Discussion Paper 11-034/1

28 Pages Posted: 16 Feb 2011

See all articles by Silvia Dominguez-Martinez

Silvia Dominguez-Martinez

University of Amsterdam - Amsterdam School of Economics (ASE)

Otto H. Swank

Erasmus University Rotterdam - Department of Economics; Tinbergen Institute Rotterdam (TIR)

Date Written: February 11, 2011

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.

Keywords: rules, human resource management policies, self-image, motivation

JEL Classification: M5, D82, D83

Suggested Citation

Dominguez-Martinez, Silvia and Swank, Otto H., On the Role of Pre-Determined Rules for HRM Policies (February 11, 2011). Tinbergen Institute Discussion Paper 11-034/1, Available at SSRN: https://ssrn.com/abstract=1761365 or http://dx.doi.org/10.2139/ssrn.1761365

Silvia Dominguez-Martinez (Contact Author)

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
Amsterdam, North Holland 1018 WB
Netherlands

Otto H. Swank

Erasmus University Rotterdam - Department of Economics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Tinbergen Institute Rotterdam (TIR)

P.O. Box 1738
3000 DR Rotterdam
Netherlands
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