Socio-economic Research in Personnel versus Personnel Economics. Issue 1 (2nd January 2017)

• Record Type: Journal Article
• Authors: Nienhueser, Werner
• Is Part Of: Forum for social economics. Volume 46:Issue 1(2017)
• Page Start: 104
• Page End: 119
• Publication Date: 2017-01-02
• Subjects: personnel economics -- socio-economics -- microeconomics; Economics -- Sociological aspects -- Periodicals; Economics -- Periodicals; 330
• DOI: 10.1080/07360932.2014.961498
• Languages: English
• ISSNs: 0736-0932

Abstract

Abstract : This paper argues that personnel economics is still dominated by the assumptions of orthodox microeconomics, and also that newer fields such as transaction cost theory are far removed from socio-economics. Personnel economics is characterised by assumptions of unbounded rationality, stable preferences and functioning markets; power differences are seen as unimportant for explanations. By contrast, a socio-economic perspective works with the assumption of bounded rationality; it takes preferences into account, assumes that markets are characterised by 'non-equilibrium' states and power differences. The paper outlines a socio-economic mode of explanation and suggests that any explanation should include assumptions about three theoretical mechanisms: pursuit of utility, power and sense-making.