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Trust-Based Working Time and Organizational Performance: Evidence from German Establishment-Level Panel Data

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  • Michael Beckmann

    ()

  • Istvàn Hegedüs

    () (University of Basel)

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    Abstract

    This paper empirically examines the impact of trust-based working time on firm performance using panel data from German establishments. Trust-based working time is a human resource management practice that involves a high degree of worker autonomy in terms of scheduling individual working time. From the theoretical viewpoint, trust-based working time may affect worker motivation positively as well as negatively. Therefore, at the establishment level the performance effects of trust-based working time remain an open question. The analysis shows that both establishment productivity and profitability increase with the diffusion of trust-based working time. Referring only to establishments with trust-based working time arrangements, both performance effects are estimated at about 1-2 percent, while in the full sample both per- formance effects are stronger ranging between about 2.5 and 5 percent.

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    Bibliographic Info

    Paper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2011/13.

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    Date of creation: 2011
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    Handle: RePEc:bsl:wpaper:2011/13

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    Postal: Peter-Merian-Weg 6, Postfach, CH-4002 Basel
    Web page: http://wwz.unibas.ch
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    Related research

    Keywords: Trust-based working time; working time flexibility; firm performance;

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    References

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    1. Beblo, Miriam & Heinze, Anja & Wolf, Elke, 2004. "Is there a wage premium or wage discount for flexible hours?," ZEW Discussion Papers 04-83, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Dominik Hanglberger, 2010. "Arbeitszufriedenheit und flexible Arbeitszeiten – Empirische Analyse mit Daten des Sozio-oekonomischen Panels," FFB-Discussionpaper 80, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    3. Federica Origo & Laura Pagani, 2008. "Workplace flexibility and job satisfaction: some evidence from Europe," International Journal of Manpower, Emerald Group Publishing, vol. 29(6), pages 539-566, September.
    4. Askenazy, Philippe & Caroli, Eve, 2006. "Innovative Work Practices, Information Technologies and Working Conditions: Evidence for France," IZA Discussion Papers 2321, Institute for the Study of Labor (IZA).
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