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Building a productive workforce: the role of structured management practices

Cornwell, Christopher, Schmutte, Ian M. and Scur, Daniela (2019) Building a productive workforce: the role of structured management practices. CEP Discussion Papers. Centre for Economic Performance, LSE, London, UK.

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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.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2019 The Authors
Divisions: LSE
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
JEL classification: M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M11 - Production Management
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited: 14 Feb 2020 15:15
Last Modified: 12 Sep 2020 23:14
URI: http://eprints.lse.ac.uk/id/eprint/103404

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