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Management in America

Author

Listed:
  • Nicholas Bloom
  • Erik Brynjolfsson
  • Lucia Foster
  • Ron Jarmin
  • Itay Saporta-Eksten
  • John Van Reenen

Abstract

The Census Bureau recently conducted a survey of management practices in over 30,000 plants across the US, the first large-scale survey of management in America. Analyzing these data reveals several striking results. First, more structured management practices are tightly linked to better performance: establishments adopting more structured practices for performance monitoring, target setting and incentives enjoy greater productivity and profitability, higher rates of innovation and faster employment growth. Second, there is a substantial dispersion of management practices across the establishments. We find that 18% of establishments have adopted at least 75% of these more structured management practices, while 27% of establishments adopted less than 50% of these. Third, more structured management practices are more likely to be found in establishments that export, who are larger (or are part of bigger firms), and have more educated employees. Establishments in the South and Midwest have more structured practices on average than those in the Northeast and West. Finally, we find adoption of structured management practices has increased between 2005 and 2010 for surviving establishments, particularly for those practices involving data collection and analysis.

Suggested Citation

  • Nicholas Bloom & Erik Brynjolfsson & Lucia Foster & Ron Jarmin & Itay Saporta-Eksten & John Van Reenen, 2013. "Management in America," Working Papers 13-01, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:13-01
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    File URL: https://www2.census.gov/ces/wp/2013/CES-WP-13-01.pdf
    File Function: First version, 2013
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    References listed on IDEAS

    as
    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    2. Nicholas Bloom & Max Floetotto & Nir Jaimovich & Itay Saporta-Eksten & Stephen J. Terry, 2012. "Really Uncertain Business Cycles," NBER Working Papers 18245, National Bureau of Economic Research, Inc.
    3. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    4. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 1-51.
    5. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011. "Management Practices Across Firms and Countries," CEP Discussion Papers dp1109, Centre for Economic Performance, LSE.
    6. Nicholas Bloom & Helena Schweiger & John Van Reenen, 2011. "The Land that Lean Manufacturing Forgot? Management Practices in Transition Countries," NBER Working Papers 17231, National Bureau of Economic Research, Inc.
    7. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
    8. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Thinking about family firms
      by noreply@blogger.com (Ryan Decker) in Updated priors on 2015-04-20 21:00:00

    Citations

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    Cited by:

    1. Beata Javorcik & Steven Poelhekke, 2017. "Former Foreign Affiliates: Cast Out and Outperformed?," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 501-539.
    2. Nicholas Bloom & Erik Brynjolfsson & Lucia Foster & Ron Jarmin & Megha Patnaik & Itay Saporta-Eksten & John Van Reenen, 2017. "What Drives Differences in Management?," CEP Discussion Papers dp1470, Centre for Economic Performance, LSE.
    3. Bloom, Nicholas & Sadun, Raffaella & Lemos, Renata & Scur, Daniela & Van Reenen, John, 2014. "The new empirical economics of management," LSE Research Online Documents on Economics 58009, London School of Economics and Political Science, LSE Library.
    4. Nicholas Bloom & Renata Lemos & Raffaella Sadun & Daniela Scur & John Van Reenen, 2016. "International Data on Measuring Management Practices," American Economic Review, American Economic Association, vol. 106(5), pages 152-156, May.
    5. Broszeit, Sandra & Laible, Marie-Christine, 2017. "The German Management and Organizational Practices (GMOP) Survey : Survey design and data quality," FDZ Methodenreport 201702_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Lucia Foster & Cheryl Grim & John Haltiwanger, 2016. "Reallocation in the Great Recession: Cleansing or Not?," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 293-331.
    7. Stefan Bender & Nicholas Bloom & David Card & John Van Reenen & Stefanie Wolter, 2018. "Management Practices, Workforce Selection, and Productivity," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 371-409.
    8. Broszeit, Sandra & Laible, Marie-Christine, 2017. "Examining the link between health measures, management practices and establishment performance," IAB Discussion Paper 201726, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Catherine Buffington & Lucia Foster & Ron Jarmin & Scott Ohlmacher, 2016. "The Management and Organizational Practices Survey (MOPS): An Overview," Working Papers 16-28, Center for Economic Studies, U.S. Census Bureau.
    10. Bartz, Wiebke & Mohnen, Pierre & Schweiger, Helena, 2016. "The role of innovation and management practices in determining firm productivity in developing economies," MERIT Working Papers 034, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. repec:eee:inecon:v:111:y:2018:i:c:p:159-176 is not listed on IDEAS
    12. Broszeit, Sandra & Fritsch, Ursula & Görg, Holger & Laible, Marie-Christine, 2016. "Management Practices and Productivity in Germany," IZA Discussion Papers 10370, Institute for the Study of Labor (IZA).
    13. Broszeit, Sandra & Fritsch, Ursula & Görg, Holger & Laible, Marie-Christine, 2016. "Management practices and productivity in Germany (Managementpraktiken und Produktivität in Deutschland)," IAB Discussion Paper 201632, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Lucia Foster & Patrice Norman, 2015. "The Annual Survey of Entrepreneurs: An Introduction," Working Papers 15-40r, Center for Economic Studies, U.S. Census Bureau.
    15. Broszeit, Sandra & Fritsch, Ursula & Görg, Holger & Laible, Marie-Christine, 2016. "Management practices and productivity in Germany," Kiel Working Papers 2050, Kiel Institute for the World Economy (IfW).
    16. Chen Yeh, 2016. "Are firm-level idiosyncratic shocks important for U.S. aggregate volatility?," Working Papers 16-47, Center for Economic Studies, U.S. Census Bureau.
    17. Broszeit, Sandra & Laible, Marie-Christine, 2016. "German management and organizational practices survey (GMOP 0813) : Data collection," FDZ Methodenreport 201606_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. Erik Brynjolfsson & Kristina McElheran, 2016. "Data in Action: Data-Driven Decision Making in U.S. Manufacturing," Working Papers 16-06, Center for Economic Studies, U.S. Census Bureau.
    19. Broszeit, Sandra & Laible, Marie-Christine, 2016. "German management and organizational practices survey (GMOP 0813) : Data documentation," FDZ Datenreport. Documentation on Labour Market Data 201609_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    Keywords

    Management; productivity; organization;

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