International Differences in Lean Production, Productivity and Employee Attitudes

Susan Helper and Morris M. Kleiner

No 13015, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The study examines US-European productivity and worker attitude differences, focusing on changes in incentive structures. We analyze productivity and worker attitudes in five plants in the UK and US belonging to the same multinational producer of automotive sensors and actuators. We examine the firm's efforts to make complementary changes in product strategy and human-resource policies. In particular, we look at the impact of a Value-Added Gainsharing plan (VAG) that was introduced at different times among the four plants. Our analysis draws on multiple plant visits, surveys of almost all of the workforce, and confidential financial data. Our study offers a rare look inside a low-wage, non-union firm. We find that the VAG had an impact on productivity and profitability. We find that the UK plant's productivity and worker satisfaction was well below that of the US plants. However, neither our analysis nor interviews with managers suggest that differences in national institutions play a key role in explaining these results.

JEL-codes: D21 D24 J31 J33 J53 J81 L11 L2 L23 L25 L6 (search for similar items in EconPapers)
Date: 2007-04
New Economics Papers: this item is included in nep-bec, nep-eff and nep-lab
Note: IO LS PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Shaw, Kathryn and Richard Freeman (eds.) International Differences in the Business Practices and Productivity of Firm, A National Bureau of Economic Research Conference Report. Chicago and London: University of Chicago Press, 2009.
Published as International Differences in Lean Production, Productivity, and Employee Attitudes , Susan Helper, Morris M. Kleiner. in International Differences in the Business Practices and Productivity of Firms , Freeman and Shaw. 2009

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