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Improving Management Through Worker Evaluations: Evidence from Auto Manufacturing

Author

Listed:
  • Jing Cai
  • Shing-Yi Wang

Abstract

Using a randomized experiment with an automobile manufacturing firm in China, we measure the effects of letting workers evaluate their managers on worker and firm outcomes. In the treatment teams, workers evaluate their managers monthly. We find that providing feedback leads to significant reductions in worker turnover and increases in team-level productivity. In addition, workers report higher levels of happiness and well-being. The evidence suggests that these results are driven by learning by managers, leading to changes in their behavior and an overall better relationship between managers and workers.

Suggested Citation

  • Jing Cai & Shing-Yi Wang, 2023. "Improving Management Through Worker Evaluations: Evidence from Auto Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(4), pages 2459-2497.
    • Handle: RePEc:oup:qjecon:v:137:y:2023:i:4:p:2459-2497.
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    File URL: http://hdl.handle.net/10.1093/qje/qjac019
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    Cited by:

    1. Kathrin Manthei & Dirk Sliwka & Timo Vogelsang, 2023. "Talking About Performance or Paying for It? A Field Experiment on Performance Reviews and Incentives," Management Science, INFORMS, vol. 69(4), pages 2198-2216, April.
    2. Li, Lingfang (Ivy) & Wu, Yuting & Zhu, Xun & Chu, Rongwei & Hung, Iris, 2022. "Job Changing Frequency and Experimental Decisions: A Field Study of Migrant Workers in the Manufacturing Industry," MPRA Paper 115472, University Library of Munich, Germany.
    3. Daniela Scur & Raffaella Sadun & John Van Reenen & Renata Lemos & Nicholas Bloom, 2021. "The World Management Survey at 18: lessons and the way forward," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 231-258.
    4. Akerlof, Robert & Ashraf, Anik & Macchiavello, Rocco & Rabbani, Atonu, 2020. "Layoffs and productivity at a Bangladeshi sweater factor," The Warwick Economics Research Paper Series (TWERPS) 1293, University of Warwick, Department of Economics.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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