Credits: 6

Schedule: 14.04.2020 - 26.05.2020

Teacher in charge (valid 01.08.2018-31.07.2020): 

DSc (Econ) Antti Kauhanen

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.

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

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)

Elaboration of the evaluation criteria and methods, and acquainting students with the evaluation (applies in this implementation): 


The lectures are an important part of the course and you will participate in
discussions and solve problems during the lectures. This spring this will be a bit more challenging as the lectures are delivered through Zoom, but I think we'll figure out how to keep the lectures interactive.

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. For example, the e-book is available at

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

Problem sets

During the lectures we will also discuss the problem sets. The problem sets will appear on the course web site approximately one week before the lecture where it will be discussed. You may work in small groups (3 pers max). You will submit your solutions through MyCourses and the deadline is the start of the lecture.  I excpect you to present your analysis in the class.


essay allows you to show that you are able to handle the material taught in
this course independently. Each
student hands in their own paper. The essay is submitted through MyCourses. The deadline will be decided on the first lecture, but in any case it will be in early June.

I will update this information as soon as I know how the exam will be implemented.

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

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.

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 14.4. Introduction
to the course & Recruitment (Chap. 2)

Thu 16.4 Recruitment
(Chap. 2)

Tue 21.4. Problem
set 1 (recruitment); Investing in Skills (Chap. 3)

Thu 23.4. Investing
in Skills (Chap. 3)

Tue 28.4. Problem set 2
(recruitment); Centralization v Decentralization (Chap. 5)

Thu 30.4. Performance
Evaluation (Chap. 9)

Tue 5.5. Problem
set 3 (Incentive pay); Performance Evaluation (Chap. 9)

Thu 7.5. Performance
Evaluation (Chap. 9)

Tue 12.5. Problem
set 4 (Incentive pay); Tying Pay to Performance (Chap. 10)

Thu 14.5. Job
Design (Chap. 8)

Tue 19.5. Problem set 5 (Incentive
pay); Promotion-Based Incentives (Chap. 11)

Wed 20.5. Evaluation
of decisions


Registration and further information