Credits: 6

Schedule: 16.04.2019 - 31.05.2019

Teacher in charge (valid 01.08.2018-31.07.2020): 

DSc (Econ) Antti Kauhanen

Contact information for the course (applies in this implementation):

Teaching Period (valid 01.08.2018-31.07.2020): 

V Spring (2018-2019), Otaniemi campus

V Spring (2019-2020), Otaniemi campus

Learning Outcomes (valid 01.08.2018-31.07.2020): 

The objective of the course is to familiarize student with economic analysis of central topics in human resource management. The student will learn to use tools and concepts of economics to analyze human resource management decision problems.

Content (valid 01.08.2018-31.07.2020): 

The course introduces economic approach to human resource management. Topics of the course include: recruitment, personnel development, job design, career development, performance measurement, and performance-related pay. The topics are studied with simple models. Analysis of real-world applications and decision problems are emphasized.

Assessment Methods and Criteria (valid 01.08.2018-31.07.2020): 

1. Lectures 24h. The lectures involve discussions of real-world problems. The problems are handed out in advance and the students will present their analysis and discuss the problems in class. There will be 5 topics, of which 4 have to be passed in order to pass the course.
2. Written assignment (50% of the final marking)
3. Final exam (50% of the final marking)

Workload (valid 01.08.2018-31.07.2020): 

Participation in lectures 24h
Preparing for the lecture sessions 24h
Writing the essay 60h
Preparing for the exam 50h
Exam 3h

Details on calculating the workload (applies in this implementation): 

lectures are an important part of the course and you will participate in
discussions and solve problems during the lectures. You won’t be able to just
sit in the class; I expect you to
participate actively
. The lectures will mostly cover i) material from
the textbook that I find challenging, unclear or very important, ii) additional
models, examples and applications that deepen what you have learned from reading
the textbook.

You will
have to prepare for the lectures by reading the relevant chapter from the
textbook and some additional readings (see the outline below). This is important
because otherwise you will not be able to solve the problems or participate in
the discussions. So do get a copy of the textbook.

notes will be available at the course web page. The lecture notes will appear
as we go along.

Study Material (valid 01.08.2018-31.07.2020): 

Lazear Edward P. and Gibbs Michael  Personnel Economics in Practice (2014), 3rd ed., mandatory


Other readings assigned during the course.

Details on the course materials (applies in this implementation): 

The 2nd
edition of the textbook is also fine, but the first edition titled “Personnel Economics for
Managers” is not suitable for this course. It is a completely different book.

I expect you to have the textbook (see more below on the lectures).
You can for example buy the e-version of the textbook for about 55€ from

Other readings will be posted on MyCourses as we go along.

Course Homepage (valid 01.08.2018-31.07.2020):

Prerequisites (valid 01.08.2018-31.07.2020): 

Intermediate Microeconomics (31C00100).

Grading Scale (valid 01.08.2018-31.07.2020): 

0 - 5

Registration for Courses (valid 01.08.2018-31.07.2020): 

Course and exam via WebOodi.

Details on the schedule (applies in this implementation): 

NB! Changes
are possible, they are announced on the MyCourse page.

Tue 16.4. Introduction
to the course & Recruitment (Chap. 2)

Thu 18.4  Recruitment
(Chap. 2)

Tue 23.4. Problem
set 1 (recruitment); Investing in Skills (Chap. 3)

Thu 25.4. Investing
in Skills (Chap. 3)

Mon 29.4. 13-15, U1(U154) Problem set 2 (recruitment);
Centralization v Decentralization (Chap. 5)

Thu 2.5.   Performance
Evaluation (Chap. 9)

Tue 7.5.   Problem
set 3 (Incentive pay); Performance Evaluation (Chap. 9)

Thu 9.5.   Performance
Evaluation (Chap. 9)

Tue 14.5. Problem
set 4 (Incentive pay);

Thu 16.5. Tying Pay to Performance (Chap. 10)

Tue 21.5. Job
Design (Chap. 8)

Thu 23.5. Problem set 5 (Job design), Promotion-Based Incentives (Chap. 11)


Registration and further information