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The impact on economic performance of a transformation in industrial relations

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  • Joel Cutcher-Gershenfeld

Abstract

This study examines how a transformation in patterns of conflict and cooperation affected economic performance in 25 work areas of a large, unionized manufacturing facility in the period 1984-87. Unlike most studies of industrial relations and economic performance, this study clearly distinguishes conflict from cooperation but evaluates the two together, rather than focusing on only one. An analysis of data collected from union and employer records and interviews strongly suggests that work areas with "traditional" labor-management relations, rooted in adversarial assumptions, had higher costs, more scrap, lower productivity, and a lower return to direct labor hours worked than work areas with "transformational" relations, characterized by increased cooperation and improved dispute resolution. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 44 (1991)
Issue (Month): 2 (January)
Pages: 241-260

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Handle: RePEc:ilr:articl:v:44:y:1991:i:2:p:241-260

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Cited by:
  1. Benoit Dostie & Rajshri Jayaraman, 2008. "Organizational redesign, information technologies and workplace productivity," ESMT Research Working Papers ESMT-08-007, ESMT European School of Management and Technology.
  2. Thomas Kochan & Eileen Appelbaum & Carrie Leana & Jody Hoffer Gittell, 2013. "The Human Capital Dimensions of Sustainable Investment: What Investment Analysts Need to Know," CEPR Reports and Issue Briefs 2013-07, Center for Economic and Policy Research (CEPR).
  3. Cutcher-Gershenfeld, Joel, 2003. "Lean Transformation in the U.S. Aerospace Industry: Appreciating Interdependent Social and Technical Systems," Working papers 4299-03, Massachusetts Institute of Technology (MIT), Sloan School of Management.
  4. Susan Helper & Morris M. Kleiner, 2007. "International Differences in Lean Production, Productivity and Employee Attitudes," NBER Working Papers 13015, National Bureau of Economic Research, Inc.
  5. Graafland, J.J. & Rutten, B., 2004. "Perceived Organisational Support and Profitability," Discussion Paper 2004-45, Tilburg University, Center for Economic Research.
  6. Lindbeck, Assar & Snower, Dennis J., 2012. "Centralized Bargaining, Multi-Tasking, and Work Incentives," Working Paper Series 473, Research Institute of Industrial Economics.
  7. Kochan, Thomas A., 1992. "Teaching and building middle range industrial relations theory," Working papers 3380-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  8. Valerij Dermol & Nada Trunk Širca, 2013. "Training, Creativity and Innovation," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.
  9. Hazril Izwar IBRAHIM & Khairul Anuar Mohammad SHAH, 2013. "Effects of Organizational Characteristics Factors on the Implementation of Strategic Human Resource Practices: Evidence from Malaysian Manufacturing Firms," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(1), pages 5-24, June.
  10. Muhammad Arif Khattak & Nadeem Iqbal & Sajid Rahman Khattak, 2013. "Relationship between Employees Involvement and Organization Performance in Milieu of Pakistan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(1), pages 219-230, January.

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