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Miscellaneous
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| Number of pages / Number of words: |
20 / 5325 |
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If technology and labor force skills are complements in firms' production functions, and if HRM systems impact the cost of acquiring, developing, and retaining the portfolio of skills in a firm, then firms' choice of HRM system affects their ability to adjust worker skill levels to maximize the value of their technological investments...
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For example, if firms need to augment the skill of their workforce to complement an investment in technology, they face a traditional "make versus buy" problem. Firms can structure their HRM system to develop the necessary skills in-house or they can structure their HRM to attract workers with the necessary skills on the external market...
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