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Bosses matter: The effects of managers on workers’ performance

Author

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  • Kathryn L. Shaw

    (Stanford University and National Bureau of Economic Research, USA, and IZA, Germany)

Abstract

A good boss can have a substantial positive effect on the productivity of a typical worker. While much has been written about the peer effects of working with good peers, the effects of working with good bosses appear much more substantial. A good boss can enhance the performance of their employees and can lower the quit rate. This may also be relevant in situations where it is challenging to employ incentive pay structures, such as when quality is difficult to observe. As such, firms should invest sufficiently in the hiring of good bosses with skills that are appropriate to their role.

Suggested Citation

  • Kathryn L. Shaw, 2019. "Bosses matter: The effects of managers on workers’ performance," World of Labour, LISER, pages 456-456, January.
    • Handle: RePEc:iza:izawol:journl:2019:n:456
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    References listed on IDEAS

    as
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    7. Edward P. Lazear & Kathryn L. Shaw & Christopher T. Stanton, 2015. "The Value of Bosses," Journal of Labor Economics, University of Chicago Press, vol. 33(4), pages 823-861.
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    9. Owan, Hideo & 都留, 康 & Tsuru, Tsuyoshi & Uehara, Katsuhito, 2012. "Seller-Buyer Ethnic Matches: The Case Of Car Transactions At Two North American Auto Dealerships," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 53(2), pages 217-236, December.
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    Cited by:

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    2. Jussi Keppo & Nizar Touzi & Ruiting Zuo, 2024. "Dynamic Contracting in Asset Management Under the Investor-Partner-Manager Relationship," Operations Research, INFORMS, vol. 72(3), pages 903-915, May.

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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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