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Does high involvement management improve worker wellbeing?

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  • Böckerman, Petri
  • Bryson, Alex
  • Ilmakunnas, Pekka

Abstract

Employees exposed to high involvement management (HIM) practices have higher subjective wellbeing, fewer accidents but more short absence spells than “like” employees not exposed to HIM. These results are robust to extensive work, wage and sickness absence history controls. We present a model which highlights the possibility of higher short-term absence in the presence of HIM because it is more demanding than standard production and because multi-skilled HIM workers cover for one another’s short absences thus reducing the cost of replacement labour faced by the employer. We find direct empirical support for the assumptions in the model. Consistent with the model, because long-term absences entail replacement labour costs for HIM and non-HIM employers alike, long-term absences are independent of exposure to HIM.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33847.

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Date of creation: 03 Oct 2011
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Handle: RePEc:pra:mprapa:33847

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Keywords: health; subjective wellbeing; sickness absence; job satisfaction; high involvement management; high performance work system;

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Cited by:
  1. Lanfranchi, Joseph & Pekovic, Sanja, 2014. "How green is my firm? Workers' attitudes and behaviors towards job in environmentally-related firms," Ecological Economics, Elsevier, vol. 100(C), pages 16-29.

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