Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223727 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13285
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using multilevel mixed effects ordered logistic models, this paper conducts an original investigation of the new management as a technology approach for all EU nations in a framework that explicitly recognizes worker representation while incorporating the notion of affective commitment. It is reported that that low worker commitment is unlikely to be found in establishments with better management practices and that, controlling for management practices and worker representation, the hypothesis that financial and productivity performance is superior in establishments without worker representation is not rejected by the data. For establishments with worker representation, the works council-only variant is seemingly the most favorable regime for financial performance, although this does not carry over to the labor productivity outcome. On net, however, the evidence suggests that the selected management practices are likely to be favorable to performance in plants with and without formal workplace representation. Greater worker commitment is strongly associated with improved labor productivity. Moreover, in this case there is seemingly no difference between works council-only representation and no representation at all. Overall, although the results for workplace representation and the financial situation are mixed, it is the case that greater commitment trumps any negative influence of worker representation type.
Subjects: 
management as a technology
human resource management
worker commitment
worker representation
labor productivity
financial performance
JEL: 
D22
J53
J50
L20
M54
Document Type: 
Working Paper

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