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Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employees and Employers

Author Info

  • David I. Levine

    ()

    (Haas School of Business, University of California, Berkeley, Berkeley, California 94720)

  • Michael W. Toffel

    ()

    (Harvard Business School, Harvard University, Boston, Massachusetts 02163)

Abstract

Several studies have examined how the ISO 9001 quality management systems standard predicts changes in organizational outcomes such as profits. This is the first large-scale study to explore how employee outcomes such as employment, earnings, and health and safety change when employers adopt ISO 9001. We analyzed a matched sample of nearly 1,000 companies in California. ISO 9001 adopters subsequently had far lower organizational death rates than a matched control group of nonadopters. Among surviving employers, ISO adopters had higher growth rates for sales, employment, payroll, and average annual earnings. Injury rates declined slightly for ISO 9001 adopters, although total injury costs did not. These results have implications for organizational theory, managers, and public policy.

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File URL: http://dx.doi.org/10.1287/mnsc.1100.1159
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Article provided by INFORMS in its journal Management Science.

Volume (Year): 56 (2010)
Issue (Month): 6 (June)
Pages: 978-996

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Handle: RePEc:inm:ormnsc:v:56:y:2010:i:6:p:978-996
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Keywords: ISO 9001; quality management; standards; occupational health and safety; wages; labor; empirical; California;

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Cited by:

  1. Lamar Pierce & Michael W. Toffel, 2010. "The Role of Organizational Scope and Governance in Strengthening Private Monitoring," Harvard Business School Working Papers 11-004, Harvard Business School, revised Feb 2012.
  2. Chonnikarn Fern Jira & Michael W. Toffel, 2011. "Engaging Supply Chains in Climate Change," Harvard Business School Working Papers 12-026, Harvard Business School, revised Oct 2012.
  3. Susan A. Kayser & John W. Maxwell & Michael W. Toffel, 2014. "Supply Chain Screening Without Certification: The Critical Role of Stakeholder Pressure," Harvard Business School Working Papers 15-009, Harvard Business School.
  4. Ion IVAN & Cristian CIUREA & Mihai DOINEA & Arthur AVRAMIEA, 2012. "Collaborative Management of Risks and Complexity in Banking Systems," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 16(2), pages 128-141.
  5. Joseph Lanfranchi & Sanja Pekovic, 2012. "How Green is my Firm? Workers' Attitudes towards Job, Job Involvement and Effort in Environmentally-Related Firms," Working Papers halshs-00744483, HAL.
  6. Paglia, John K. & Harjoto, Maretno A., 2014. "The effects of private equity and venture capital on sales and employment growth in small and medium-sized businesses," Journal of Banking & Finance, Elsevier, vol. 47(C), pages 177-197.
  7. Jodi L. Short & Michael W. Toffel & Andrea Read Hugill, 2013. "Monitoring the Monitors: How Social Factors Influence Supply Chain Auditors," Harvard Business School Working Papers 14-032, Harvard Business School, revised Sep 2014.

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