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The Impact on Economic Performance of a Transformation in Workplace Relations

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  • Joel Cutcher-Gershenfeld

Abstract

This study examines how a transformation in patterns of conflict and cooperation affected economic performance in 25 work areas of a large, unionized manufacturing facility in the period 1984–87. Unlike most studies of industrial relations and economic performance, this study clearly distinguishes conflict from cooperation but evaluates the two together, rather than focusing on only one. An analysis of data collected from union and employer records and interviews strongly suggests that work areas with “traditional†labor-management relations, rooted in adversarial assumptions, had higher costs, more scrap, lower productivity, and a lower return to direct labor hours worked than work areas with “transformational†relations, characterized by increased cooperation and improved dispute resolution.

Suggested Citation

  • Joel Cutcher-Gershenfeld, 1991. "The Impact on Economic Performance of a Transformation in Workplace Relations," ILR Review, Cornell University, ILR School, vol. 44(2), pages 241-260, January.
    • Handle: RePEc:sae:ilrrev:v:44:y:1991:i:2:p:241-260
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    Cited by:

    1. Dostie Benoit & Jayaraman Rajshri, 2012. "Organizational Redesign, Information Technologies and Workplace Productivity," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-41, February.
    2. Thomas Kochan & Marc Weinstein, 1994. "Recent Developments in US Industrial Relations," British Journal of Industrial Relations, London School of Economics, vol. 32(4), pages 483-504, December.
    3. Rosemary Batt & Eileen Appelbaum, 1995. "Worker Participation in Diverse Settings: Does the Form Affect the Outcome, and If So, Who Benefits?," British Journal of Industrial Relations, London School of Economics, vol. 33(3), pages 353-378, September.
    4. Thomas Kochan & Eileen Appelbaum & Carrie Leana & Jody Hoffer Gittell, 2013. "The Human Capital Dimensions of Sustainable Investment: What Investment Analysts Need to Know," CEPR Reports and Issue Briefs 2013-07, Center for Economic and Policy Research (CEPR).
    5. Vichet Sum, 2015. "Can firms with the best training program withstand the storm of economic policy uncertainty?," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(1), pages 206-213, February.
    6. Barry Gerhart, 2005. "Human Resources and Business Performance: Findings, Unanswered Questions, and an Alternative Approach," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(2), pages 174-185.
    7. Alexander J. S. Colvin, 2013. "Participation Versus Procedures in Non-Union Dispute Resolution," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52, pages 259-283, January.
    8. Michael David Maffie, 2023. "Becoming a pirate: Independence as an alternative to exit in the gig economy," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 46-67, March.
    9. Franco GANDOLFI & Magnus HANSSON, 2015. "A Global Perspective on the Non-Financial Consequences of Downsizing," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 185-204, May.
    10. Cutcher-Gershenfeld, Joel, 2003. "Lean Transformation in the U.S. Aerospace Industry: Appreciating Interdependent Social and Technical Systems," Working papers 4299-03, Massachusetts Institute of Technology (MIT), Sloan School of Management.

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