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Management-Employee Relations, Firm Size and Job Satisfaction

Author

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  • Aysit Tansel

    () (Department of Economics, METU)

  • Saziye Gazioglu

    () (Department of Economics and Institute of Applied Mathematics, METU)

Abstract

This paper investigates the job satisfaction in relation to managerial attitudes towards employees and firm size using the linked employer-employee survey results in Britain.We first investigate the management-employee relationships and the firm size using maximum likelihood probit estimation . Next various measues of job satisfaction are related to the management-employee relations via maximum likelihood ordered probit estimates. Four measures of job satisfaction that have not been used often are considered. They are satisfaction with influence over job; satisfaction with amount of pay; satisfaction with sense of achievement and satisfaction with respect from supervisors. Main findings indicate that management-employee relationships are less satisfactory in the large firms than in the small firms. Job satisfaction levels are lower in large firms. Less satisfactory management-employee relationships in the large firms may be a major source of the observed lower level of job satisfaction in them. These results have important policy implications from the point of view of the firm management while achieving the aims of their organizations in particular in the large firms in the area of management-employee relationships. Improving the management-employee relations in large firms will increase employee satisfaction in many respects as well as increase productivity and reduce turnover. The nature of the management-employee relations with firm size and job satisfaction has not been investigated before.

Suggested Citation

  • Aysit Tansel & Saziye Gazioglu, 2012. "Management-Employee Relations, Firm Size and Job Satisfaction," ERC Working Papers 1211, ERC - Economic Research Center, Middle East Technical University, revised Dec 2012.
  • Handle: RePEc:met:wpaper:1211
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    References listed on IDEAS

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    Cited by:

    1. William Magee, 2015. "Effects of Gender and Age on Pride in Work, and Job Satisfaction," Journal of Happiness Studies, Springer, vol. 16(5), pages 1091-1115, October.
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    3. McKay, Andy & Newell, Andrew T. & Rienzo, Cinzia, 2018. "Job Satisfaction among Young Workers in Eastern and Southern Africa: A Comparative Analysis," IZA Discussion Papers 11380, Institute of Labor Economics (IZA).
    4. Alex Bryson & Michael White, 2019. "HRM and Small-Firm Employee Motivation: Before and After the Great Recession," ILR Review, Cornell University, ILR School, vol. 72(3), pages 749-773, May.
    5. Cecile Schultz & Reulene Küsel, 2019. "Manager-Employee Relationships during Turbulent Times at a Gold Mine in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 81-88.
    6. Zhiming Cheng, 2014. "The Effects of Employee Involvement and Participation on Subjective Wellbeing: Evidence from Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(2), pages 457-483, September.
    7. Bryson, Alex & White, Michael, 2017. "HRM and Small-Firm Employee Motivation: Before and after the Recession," IZA Discussion Papers 10737, Institute of Labor Economics (IZA).
    8. Paulo Aguiar do Monte, 2019. "Effort Level by Firm Size in a Developing Country," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(1), pages 73-87, March.
    9. Luisa Corrado & Majlinda Joxhe, 2016. "The Effect of Survey Design on Extreme Response Style: Rating Job Satisfaction," CEIS Research Paper 365, Tor Vergata University, CEIS, revised 08 Feb 2016.

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    More about this item

    Keywords

    Job Satisfaction; Managerial Attitudes; Firm size; Linked Employer-Employee data; Britain;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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