Identity and the Economics of Organizations Harvard Case Solution & Analysis

The ability to place workers in jobs with which they identify a central place in the organization that does the job. The authors discuss the limits of monetary incentives and strength of personality, enhance the economic model to encourage a new look at the different policies of management, organizational behavior and employment policies. They argue that identity is the next step in the evolution of the organization of economic modeling, and show that the simplest representation of the organization is equal to its physical capital: the more complex form of specific human capital adds to the description of the company employees. Since the firm can profitably motivate their employees through such investments, these investments should be considered as part of the capital organization, his motivational capital.
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by George Akerlof, Rachel Kranton Source: Rotman School of Management, 5 pages. Publication Date: September 01, 2006. Prod. #: ROT032-PDF-ENG

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