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Does High Involvement Management Improve Worker Wellbeing?

Author

Listed:
  • Petri Böckerman

    (Labour Institute for Economic Research and School of Management, University of Tampere)

  • Alex Bryson

    (National Institute of Economic and Social Research and CEP, London)

  • Pekka Ilmakunnas

    (Aalto University School of Economics, Helsinki)

Abstract

Employees exposed to high involvement management (HIM) practices have higher subjective wellbeing, fewer accidents but more short absence spells than "like" employees not exposed to HIM. These results are robust to extensive work, wage and sickness absence history controls. We highlight the possibility of higher short-term absence in the presence of HIM because it is more demanding than standard production and because multi-skilled HIM workers cover for one another's short absences thus reducing the cost of replacement labour faced by the employer. We find direct empirical support for this. In accordance with the theoretical framework we find also that long-term absences are independent of exposure to HIM, which is consistent with long-term absences entailing replacement labour costs and with short absences having a negative effect on longer absences.

Suggested Citation

  • Petri Böckerman & Alex Bryson & Pekka Ilmakunnas, 2012. "Does High Involvement Management Improve Worker Wellbeing?," Working Papers 1286, Tampere University, Faculty of Management and Business, Economics.
    • Handle: RePEc:tam:wpaper:1286
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    File URL: http://urn.fi/urn:isbn:978-951-44-8787-3
    File Function: First version, 2012
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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