Building a Productive Workforce: The Role of Structured Management Practices
Christopher Cornwell (),
Ian M. Schmutte and
Daniela Scur ()
CEP Discussion Papers from Centre for Economic Performance, LSE
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: D22 M11 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-hrm
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1644
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