Harnessing Information to Improve Human Resource Practices in the Workplace
Firms and workers routinely run into problems because they are ill-informed about whether they are well suited for each other, whether workers are engaged, and whether the workers are receiving the right training and possess the right skills to adequately perform their jobs. This is an information problem—and performance management systems are designed to address it by collecting detailed data on individual performance on the job.
Dr. Fabian Lange, Canada Research Chair in Labour and Personnel Economics, collects and analyzes data from performance management systems to better understand their implications for individuals and firms. He and his research team are asking whether these systems, which rely heavily on supervisor ratings, change the way that employees interact with their supervisors. Is this productive? How effectively do these systems address information problems?
This fundamental research into the foundations of the modern workplace will achieve three key goals: It will shape our understanding of the employee–employer relationship and the role it plays in the modern workplace. It will provide guidance to firms on how to effectively design human resource practices. And finally, it will provide an empirical basis for discussions about the use and potential abuse of data collected about employees in modern corporations.