Building a productive workforce: the role of structured management practices

Christopher Cornwell, Ian Schmutte and Daniela Scur

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Firms’ hiring and firing decisions affect the entire labor market. Managers often make these decisions, yet the effects of management on labor allocation remains largely unexplored. To study the relationship between a firm’s management practices and how it recruits, retains and dismisses its employees, we link a survey of firm-level management practices to production and employee records from Brazil. We find that firms using structured management practices consistently hire and retain better workers, and fire more selectively. Good production workers match with firms using structured personnel management practices. By contrast, better managers match with firms using structured operations management practices.

Keywords: labor allocation; managers; management practices; productivity (search for similar items in EconPapers)
JEL-codes: D20 J31 M11 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2019-08-13
New Economics Papers: this item is included in nep-bec and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://eprints.lse.ac.uk/103404/ Open access version. (application/pdf)

Related works:
Journal Article: Building a Productive Workforce: The Role of Structured Management Practices (2021)
Working Paper: Building a productive workforce: the role of structured management practices (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:103404

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