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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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    Related research

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

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    References

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    1. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December.
    2. Thomas Zwick, 2005. "Continuing Vocational Training Forms and Establishment Productivity in Germany," German Economic Review, Verein für Socialpolitik, vol. 6(2), pages 155-184, 05.
    3. 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.
    4. T. Alexandra Beauregard & Lesley C. Henry, 2009. "Making the link between work-life balance practices and organizational performance," LSE Research Online Documents on Economics 25224, London School of Economics and Political Science, LSE Library.
    5. Steffen Mueller, 2009. "The Productivity Effect of Non-Union Representation," Working Papers 074, Bavarian Graduate Program in Economics (BGPE).
    6. Zwick, Thomas & Wolf, Elke, 2002. "Reassessing the Impact of High Performance Workplaces," ZEW Discussion Papers 02-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Wößmann, Ludger & West, Martin R., 2006. "Class-size effects in school systems around the world: Evidence from between-grade variation in TIMSS," Munich Reprints in Economics 19673, University of Munich, Department of Economics.
    8. 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.
    9. 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.
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    Cited by:
    1. Jochen Späth, 2013. "Non-standard Employment, Working Time Arrangements, Establishment Entry and Exit," IAW Discussion Papers 98, Institut für Angewandte Wirtschaftsforschung (IAW).

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