Works councils and organizational performance: The role of top managers’ and works councils’ attitudes in bad vis-à -vis good times

A. van den Berg, Y.K. Grift and A. van Witteloostuijn

No 08-14, Working Papers from Utrecht School of Economics

Abstract: This study seeks to offer a contribution to the works council – organizational performance literature by adding, to date, largely unexplored potential contingencies: the attitudes of Dutch top managers and works councils as to the functioning of the latter, in bad vis-à -vis good times. The overall conclusion from our probit analyses is that the way in which management and works councils interact, and hence the way in which codetermination is implemented, makes all the difference to the firm’s economic position. Our most compelling finding relates to the role of management: a positive attitude of managers toward the works council is positively associated with organizational performance, both in the private and the public sector. In the private sector, this result is even reinforced in times of reorganization.

Keywords: mutual relationship and collaboration between works councils and management; organizational performance (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-bec
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