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The From-Tayloristic-to-Holistic-Organization Model From an Empirical Perspective

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  • Carstensen, Vivian
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    Abstract

    The objective of the paper is to confront the conclusions in the seminal papers of Lindbeck and Snower (2001, 2000, 1996) and Snower (1998) with the empirical evidence in the manufacturing sector, thus testing the from-Tayloristic-to-holistic-organization model. Starting from stylized facts as growing incidence of so called high performance/high involvement work systems, the major theoretical findings on determinants and effects of complementary systems of work organization are recapitulated. The derived hypotheses to be tested are: The coexistence of two distinct types of work organization can be shown. According to their characteristics, these types describe a rank order with respect to the existence of sophisticated instruments of human resource management policy. Due to the complementarity property, we observe increasing productivity effects of team production, thus being larger in holistic firms. Empirical evidence reveals that still 43% of firms have a Tayloristic work organization. Holistic firms are more productive. Marginal returns from reorganization towards multiple tasks (team work) prove to be negative in Tayloristic firms and to be positive in holistic firms. Although only borderline significant, these results can be interpreted as an indication for the complementarity hypotheses stipulated by Lindbeck and Snower.

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    Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-256.

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    Length: 42 pages
    Date of creation: Jun 2002
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    Handle: RePEc:han:dpaper:dp-256

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    1. Klette, T.J., 1992. "The Inconsistency of Common Scale Estimators when Output Prices are unobserved and Endogenous," Harvard Institute of Economic Research Working Papers 1586, Harvard - Institute of Economic Research.
    2. Milgrom, Paul & Roberts, John, 1994. "Comparing Equilibria," American Economic Review, American Economic Association, vol. 84(3), pages 441-59, June.
    3. Baker, George & Gibbons, Robert & Murphy, Kevin J, 1994. "Subjective Performance Measures in Optimal Incentive Contracts," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 1125-56, November.
    4. Lindbeck, A. & Snower, D.J., 1996. "Reorganization of Firms and Labor Market Inequality," Papers 605, Stockholm - International Economic Studies.
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    8. Milgrom, P. & Shannon, C., 1991. "Monotone Comparative Statics," Papers 11, Stanford - Institute for Thoretical Economics.
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    10. Irene Bertschek & Ulrich Kaiser, 2004. "Productivity Effects of Organizational Change: Microeconometric Evidence," Management Science, INFORMS, vol. 50(3), pages 394-404, March.
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    13. 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.
    14. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-91, September.
    15. Kandel, E. & Lazear, E.P., 1990. "Peer Pressure and Partnerships," Papers 90-07, Rochester, Business - Managerial Economics Research Center.
    16. Kochan, Thomas A., 1996. "What works at work : overview and assessment," Working papers 3886-96., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    17. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, October.
    18. Richard B. Freeman & Morris M. Kleiner & Cheri Ostroff, 2000. "The Anatomy of Employee Involvement and Its Effects on Firms and Workers," NBER Working Papers 8050, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Carstensen, Vivian, 2002. "Reorganization of Firms and Productivity: A Treatment Effects Approach," Hannover Economic Papers (HEP) dp-257, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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