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Transaction cost-choice analysis of organizational recruitment: A case study of a financial institution

Posted on:1990-02-08Degree:Ph.DType:Dissertation
University:Indiana UniversityCandidate:Marx, Jonathan IraFull Text:PDF
GTID:1479390017954374Subject:Economics
Abstract/Summary:
This dissertation examines organizational recruitment practices in a large Midwestern financial institution. The empirical analysis focuses on the organization's attempts to fill approximately 575 job openings (ranging across roughly 130 job titles) originating between November, 1987 and February, 1988.;In attempting to understand why the organization uses certain recruitment techniques to fill particular positions, I present a theory of human resource management which synthesizes elements from both transaction cost theory and strategic choice theory. Based on certain job characteristics, a finite number of cost effective arrangements of internal governance structures and external search strategies are predicted. The hypothesized solutions to particular human asset management and acquisition dilemmas are compared to those actually chosen by management. An effort is made to uncover the particular factors which influence exact choices.;As suggested by the strategic cost-choice theory, the firm examines both the internal and external labor pools in most searches. While the firm displays a great deal of choice in specific internal job design (i.e., compensation and part-time designation) and recruitment decisions, a consistency between efforts to reduce turnover and recruitment choices appears essential for efficient human resource management. Importantly, the findings indicate that informal external recruitment strategies such as referrals are a viable search method.
Keywords/Search Tags:Recruitment, Management
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