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Managerial quality, team success, and individual player performance in major league baseball

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  • Lawrence M. Kahn

Abstract

This paper uses 1969-87 major league baseball data to investigate the impact of managerial quality on team winning and individual player performance. Managerial quality and player performance are measured as predicted pay based on salary regressions; these market-based measures permit conclusions about costs and benefits of managerial quality. There are two major findings. First, when player inputs are controlled for, higher-quality managers lead to higher winning percentages. Second, players tend to play better, relative to their prior performance levels, the higher the manager's quality. These findings suggest that, as emphasized by the human resource management literature, the quality of management makes an important difference in the performance of organizations. (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): 46 (1993)
Issue (Month): 3 (April)
Pages: 531-547

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Handle: RePEc:ilr:articl:v:46:y:1993:i:3:p:531-547

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Cited by:
  1. Bridgewater, Sue & Kahn, Lawrence M. & Goodall, Amanda H., 2011. "Substitution and complementarity between managers and subordinates: Evidence from British football," Labour Economics, Elsevier, Elsevier, vol. 18(3), pages 275-286, June.
  2. Edward P. Lazear & Kathryn L. Shaw & Christopher T. Stanton, 2012. "The Value of Bosses," NBER Working Papers 18317, National Bureau of Economic Research, Inc.
  3. Sue Bridgewater & Lawrence M. Kahn & Amanda H. Goodall, 2009. "Substitution Between Managers and Subordinates: Evidence from British Football," NCER Working Paper Series, National Centre for Econometric Research 51, National Centre for Econometric Research.
  4. B Frick & R Simmons, 2005. "The impact of managerial quality on organizational performance: evidence from German soccer," Working Papers, Lancaster University Management School, Economics Department 566927, Lancaster University Management School, Economics Department.
  5. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 14(3), pages 75-94, Summer.
  6. Holmes, Paul, 2011. "New evidence of salary discrimination in major league baseball," Labour Economics, Elsevier, Elsevier, vol. 18(3), pages 320-331, June.
  7. repec:lan:wpaper:3594 is not listed on IDEAS
  8. Goodall, Amanda H. & Kahn, Lawrence M. & Oswald, Andrew J., 2011. "Why do leaders matter? A study of expert knowledge in a superstar setting," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 77(3), pages 265-284, March.
  9. Goodall, Amanda H. & Kahn, Lawrence M. & Oswald, Andrew J., 2008. "Why Do Leaders Matter? The Role of Expert Knowledge," IZA Discussion Papers 3583, Institute for the Study of Labor (IZA).
  10. repec:lan:wpaper:3596 is not listed on IDEAS
  11. repec:lan:wpaper:3702 is not listed on IDEAS

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