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Building a productive workforce: the role of structured management

Author

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  • Cornwell, Christopher
  • Schmutte, Ian M.
  • Scur, Daniela

Abstract

Firms' hiring and firing decisions affect the entire labor market. Managers often make these decisions, yet the effects of management on labor allocation remains largely unexplored. To study the relationship between a firm's management practices and how it recruits, retains and dismisses its employees, we link a survey of firm-level management practices to production and employee records from Brazil. We find that firms using structured management practices consistently hire and retain better workers, and fire more selectively. Good production workers match with firms using structured personnel management practices. By contrast, better managers match with firms using structured operations management practices.

Suggested Citation

  • Cornwell, Christopher & Schmutte, Ian M. & Scur, Daniela, 2019. "Building a productive workforce: the role of structured management," CEPR Discussion Papers 13908, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:13908
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    References listed on IDEAS

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    Cited by:

    1. Arellano-Bover, Jaime & Saltiel, Fernando, 2021. "Differences in On-the-Job Learning across Firms," IZA Discussion Papers 14473, Institute of Labor Economics (IZA).
    2. Kevin Donovan & Will Jianyu Lu & Todd Schoellman, 2020. "Labor Market Dynamics and Development," Staff Report 596, Federal Reserve Bank of Minneapolis.

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    More about this item

    Keywords

    labor allocation; Management Practices; Managers; productivity;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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