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Q: Should you adopt a “No offer matching policy?” A: It depends on whether or not you think the worker will actually leave the firm If workers are likely to leave the firm for better offers, then you want the opportunity to “offer match” if the offer is still equal to or below the workers value to you If workers are not likely to leave the firm,...

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Suppliers (p. 94) Entities that provide an organization with the external resources that it needs to operate, including money, materials, people, and information Regulation (p. 95) Rules set by external governing bodies that dictate standards and procedures for industries, businesses, and professionals Government activism – role played by gover...

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Students take an exam. After the exam, the students are ranked according to their performance. An ordinal ranking lists the students in order of their performance (i.e., Harry did best, Joe did second best, Betty did third best, and so on). A cardinal ranking gives the mark of the exam, based on an absolute marking standard (i.e., Harry got 80, Joe...

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Balancing loop-  a reactionary force that attempts to move a current state to a desired state through some level of action Reinforcing loop- a reactionary force, where an action produces a result that causes more of the same action, resulting in either a condition of growth or decline.

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The amount of education individuals will get depends on Factors affecting their current and future earnings Individuals whose earnings are substantially boosted by education are more likely to get more education than those where the effect is smaller (educational ability) Age-earnings profile: lifetime earnings under different scenarios Their ...

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Motion studies – Frank B. Gilbreth (p. 39) Motion picture cameras captured the step-by-step movements taken to complete a task Sought efficiencies by orchestrating the maximum results for the least worker effort Scientific management and the mind – Lillian Gilbreth (p. 40) Studied how managerial perceptions, emotions, and thoughts affected work...

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Derived Demand The part of demand for a good that is derived from the production and sale of other goods. Direct Demand The part of demand for a good that comes from the desire of buyers to directly consume the good itself.

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To avoid hiring “lemons,” we can also screen candidates e.g. Sanford Bernstein analysts: intensive screening via credentials, tests, psychometric evaluations, interviews risky hires more relevant if there is high upside potential screening more relevant when the issue is avoiding downside risk Most screening methods are disappointingly ineffect...

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Models are like maps – using visual methods, they simply the process and facilitate understanding of complex concepts. Microeconomic models need to: Resemble Reality Be Understandable Be an Appropriate Scale

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the riskier the candidate (holding expected productivity constant) young candidates w/ less experience new positions the smaller the downside, larger the upside if you are hiring a “portfolio” of people & can diversify the lower are termination costs creative jobs with high upside potential creative / adaptable people if the firm can pay...

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