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The Impact of Management Practices on Employee Productivity: A Field Experiment with Airline Captains

Author

Listed:
  • Greer K. Gosnell
  • John A. List
  • Robert D. Metcalfe

Abstract

Increasing evidence indicates the importance of management in determining firms’ productivity. Yet, causal evidence regarding the effectiveness of management practices is scarce, especially for high-skilled workers in the developed world. In an eight-month field experiment measuring the productivity of captains in the commercial aviation sector, we test four distinct management practices: (i) performance monitoring; (ii) performance feedback; (iii) target setting; and (iv) pro-social incentives. We find that these management practices—particularly performance monitoring and target setting—significantly increase captains’ productivity with respect to the targeted fuel-saving dimensions. We identify positive spillovers of the tested management practices on job satisfaction and carbon dioxide emissions, and captains overwhelmingly express desire for deeper managerial engagement. Both the implementation and the results of the study reveal an uncharted opportunity for management researchers to delve into the black box of firms and rigorously examine the determinants of productivity amongst skilled labor.

Suggested Citation

  • Greer K. Gosnell & John A. List & Robert D. Metcalfe, 2019. "The Impact of Management Practices on Employee Productivity: A Field Experiment with Airline Captains," NBER Working Papers 25620, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:25620
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    12. repec:feb:framed:0087 is not listed on IDEAS
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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