ECON 416 Lecture Notes - Lecture 10: Reporting Bias, Human Resource Management, Management Consulting
25 May 2017
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Document Summary
We are trying to understand the extent to which differences in well-being across countries can be explained by differences in the way firms operate. We saw the firms in developing countries. Have a hard time accessing the market for capital and cannot borrow as much as they want. Labor market frictions prevent them from using the optimal amount of labor input. Even if they get as much labor as they want, other issues prevent labor from being as productive as it would be in developed countries (nutrition, etc. ) Learning is costly, and organizational barriers slow down technology adoption. Nick bloom and john van reenen have been studying this issue for a decade now. They developed a special survey on management practices covering three broad areas: Monitoring: how well do companies monitor what goes on and use this for improvement. Targets: do companies set the right targets, track the right outcomes, and take appropriate action.
