Chapter

Employment Systems and the Theory of the Firm: Societal Diversity

David Marsden

in A Theory of Employment Systems

Published in print September 1999 | ISBN: 9780198294221
Published online November 2003 | e-ISBN: 9780191596612 | DOI: http://dx.doi.org/10.1093/0198294220.003.0009
 Employment Systems and the Theory of the Firm: Societal Diversity

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The theory of employment systems provides a synthesis between the ‘human resource–based’ and the ‘opportunism‐based’ theories of the firm. The work rules shape human resource management systems within the firm, and these serve both as a platform for the development of skills and organizational capabilities, and they help contain opportunism. It is also shown how employment systems can shape labour institutions, and influence the development of patterns of corporate governance.

Keywords: corporate governance; employment system; human resources; labour institutions; opportunism; organizational capabilities; skills; theory of the firm; work rules

Chapter.  12254 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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