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Trust-based working time and organizational performance: evidence from German establishment-level panel data

Author

Listed:
  • Beckmann, Michael

    (University of Basel)

  • Hegedüs, Istvan

Abstract

This paper empirically examines the impact of trust-based working time on firm performance using panel data from German establishments. Trust-based working time is a human resource management practice that involves a high degree of worker autonomy in terms of scheduling individual working time. From the theoretical viewpoint, trust-based working time may affect worker motivation positively as well as negatively. Therefore, at the establishment level the performance effects of trust-based working time remain an open question. The analysis shows that both establishment productivity and profitability increase with the diffusion of trust-based working time. Referring only to establishments with trust-based working time arrangements, both performance effects are estimated at about 1-2 percent, while in the full sample both performance effects are stronger ranging between about 2.5 and 5 percent.

Suggested Citation

  • Beckmann, Michael & Hegedüs, Istvan, 2011. "Trust-based working time and organizational performance: evidence from German establishment-level panel data," Working papers 2011/13, Faculty of Business and Economics - University of Basel.
    • Handle: RePEc:bsl:wpaper:2011/13
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Trust-based working time; working time flexibility; firm performance;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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