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The From-Tayloristic-to-Holistic-Organization Model From an Empirical Perspective

  • Carstensen, Vivian
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    The objective of the paper is to confront the conclusions in the seminal papers of Lindbeck and Snower (2001, 2000, 1996) and Snower (1998) with the empirical evidence in the manufacturing sector, thus testing the from-Tayloristic-to-holistic-organization model. Starting from stylized facts as growing incidence of so called high performance/high involvement work systems, the major theoretical findings on determinants and effects of complementary systems of work organization are recapitulated. The derived hypotheses to be tested are: The coexistence of two distinct types of work organization can be shown. According to their characteristics, these types describe a rank order with respect to the existence of sophisticated instruments of human resource management policy. Due to the complementarity property, we observe increasing productivity effects of team production, thus being larger in holistic firms. Empirical evidence reveals that still 43% of firms have a Tayloristic work organization. Holistic firms are more productive. Marginal returns from reorganization towards multiple tasks (team work) prove to be negative in Tayloristic firms and to be positive in holistic firms. Although only borderline significant, these results can be interpreted as an indication for the complementarity hypotheses stipulated by Lindbeck and Snower.

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    File URL: http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-256.pdf
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    Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-256.

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    Length: 42 pages
    Date of creation: Jun 2002
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    Handle: RePEc:han:dpaper:dp-256
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    1. Holmstrom, Bengt, 1999. "The Firm as a Subeconomy," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 74-102, April.
    2. Lindbeck, Assar & Dennis J. Snower , Dennis J., 1995. "Reorganization of Firms and Labor Market Inequality," Working Paper Series 448, Research Institute of Industrial Economics.
    3. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    4. Kochan, Thomas A., 1996. "What works at work : overview and assessment," Working papers 3886-96., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    5. Tor Jakob Klette & Zvi Griliches, 1994. "The Inconsistency of Common Scales Estimators when Output Prices are Unobserved and Endogenous," Discussion Papers 127, Statistics Norway, Research Department.
    6. 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.
    7. Kandel, E. & Lazear, E.P., 1990. "Peer Pressure and Partnerships," Papers 90-07, Rochester, Business - Managerial Economics Research Center.
    8. Richard B. Freeman & Morris M. Kleiner & Cheri Ostroff, 2000. "The Anatomy of Employee Involvement and Its Effects on Firms and Workers," NBER Working Papers 8050, National Bureau of Economic Research, Inc.
    9. George Baker & Robert Gibbons & Kevin J. Murphy, 1993. "Subjective Performance Measures in Optimal Incentive Contracts," NBER Working Papers 4480, National Bureau of Economic Research, Inc.
    10. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-91, September.
    11. W. Bentley MacLeod & Daniel Parent, 1998. "Job Characteristics, Wages and the Employment Contract," CIRANO Working Papers 98s-37, CIRANO.
    12. Truman F. Bewley, 1999. "Work Motivation," Cowles Foundation Discussion Papers 1209, Cowles Foundation for Research in Economics, Yale University.
    13. Truman Bewley, 1999. "Work motivation," Review, Federal Reserve Bank of St. Louis, issue May, pages 35-49.
    14. Bertschek, Irene & Kaiser, Ulrich, 2001. "Productivity effects of organizational change: microeconometric evidence," ZEW Discussion Papers 01-32, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    15. Milgrom, Paul & Roberts, John, 1994. "Comparing Equilibria," American Economic Review, American Economic Association, vol. 84(3), pages 441-59, June.
    16. Lindbeck, Assar & Snower, Dennis J., 2001. "Centralized bargaining and reorganized work: Are they compatible?," European Economic Review, Elsevier, vol. 45(10), pages 1851-1875, December.
    17. Lindbeck, Assar & Snower, Dennis J., 1999. "Multi-Task Learning and the Reorganization of Work. From Tayloristic to Holistic Organization," IZA Discussion Papers 39, Institute for the Study of Labor (IZA).
    18. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, March.
    19. Milgrom, P. & Shannon, C., 1991. "Monotone Comparative Statics," Papers 11, Stanford - Institute for Thoretical Economics.
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