Complementarities of HRM Practices

We provide an overview over different literature streams that aim
at explaining the origin of persistent productivity differences
across organization by variation in the use of management
practices. We focus on human resource management (HRM) practices,
document gaps in the literature, and show how insights from
behavioral economics can inform the analysis. To this end, we
develop a simple agency model illustrating how social preferences
influence the design and impact of incentive schemes, investigate
how auxiliary HRM practices can strengthen this interaction, and
provide an overview over empirical investigations of this
questions. Finally, we identify avenues for further research in
this field.