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Advances in Developing Human Resources
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The Economics of Utility, Agency, Theory, and Human Resource Development

Ross E. Azevedo

Department of Human Resources and Industrial Relations, Carlson School of Management, University of Minnesota, Twin Cities

Mesut Akdere

Department of Administrative Leadership at the University of Wisconsin-Milwaukee

The problem and the solution . Rational self-interest economic behavior of individuals may lead to undesirable outcomes for the institution. The principal—agent problem and its potential solutions deal with the ways that organizations must pay close attention in the relationships to optimize their physical and human resources for organizational success. Human resource development can play a significant role in facilitating a positive principal—agent relationship.

Key Words: agency theory • principal—agent problem • HRD contributions

Advances in Developing Human Resources, Vol. 10, No. 6, 817-833 (2008)
DOI: 10.1177/1523422308324700
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