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Management in America

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Author Info

  • Nicholas Bloom
  • Erik Brynjolfsson
  • Lucia Foster
  • Ron Jarmin
  • Itay Saporta-Eksten
  • John Van Reenen

Abstract

The Census Bureau recently conducted a survey of management practices in over 30,000 plants across the US, the first large-scale survey of management in America. Analyzing these data reveals several striking results. First, more structured management practices are tightly linked to better performance: establishments adopting more structured practices for performance monitoring, target setting and incentives enjoy greater productivity and profitability, higher rates of innovation and faster employment growth. Second, there is a substantial dispersion of management practices across the establishments. We find that 18% of establishments have adopted at least 75% of these more structured management practices, while 27% of establishments adopted less than 50% of these. Third, more structured management practices are more likely to be found in establishments that export, who are larger (or are part of bigger firms), and have more educated employees. Establishments in the South and Midwest have more structured practices on average than those in the Northeast and West. Finally, we find adoption of structured management practices has increased between 2005 and 2010 for surviving establishments, particularly for those practices involving data collection and analysis.

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File URL: ftp://ftp2.census.gov/ces/wp/2013/CES-WP-13-01.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 13-01.

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Length: 38 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:cen:wpaper:13-01

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Related research

Keywords: Management; productivity; organization;

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References

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  1. Bloom, Nicholas & Garicano, Luis & Sadun, Raffaella & Van Reenen, John, 2013. "The distinct effects of Information Technology and Communication Technology on firm organization," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9762, C.E.P.R. Discussion Papers.
  2. Nicholas Bloom & David McKenzie, 2010. "Does Management Matter? Evidence From India," Discussion Papers, Stanford Institute for Economic Policy Research 10-014, Stanford Institute for Economic Policy Research.
  3. Nicholas Bloom & Helena Schweiger & John Van Reenen, 2011. "The Land that Lean Manufacturing Forgot? Management Practices in Transition Countries," CEP Discussion Papers dp1065, Centre for Economic Performance, LSE.
  4. Nicholas Bloom & Max Floetotto & Nir Jaimovich & Itay Saporta-Eksten & Stephen Terry, 2013. "Really Uncertain Business Cycles," CEP Discussion Papers dp1195, Centre for Economic Performance, LSE.
  5. S Black & L Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," CEP Discussion Papers dp0376, Centre for Economic Performance, LSE.
  6. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011. "Management Practices Across Firms and Countries," CEP Discussion Papers dp1109, Centre for Economic Performance, LSE.
  7. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
  8. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
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Cited by:
  1. Lucia Foster & Cheryl Grim & John Haltiwanger, 2014. "Reallocation in the Great Recession: Cleansing or Not?," NBER Working Papers 20427, National Bureau of Economic Research, Inc.

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