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Works councils and organizational performance : The role of top managers’ and works councils’ attitudes in bad vis-à -vis good times

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  • A. van den Berg
  • Y.K. Grift
  • A. van Witteloostuijn

Abstract

This study seeks to offer a contribution to the works council – organizational performance literature by adding, to date, largely unexplored potential contingencies: the attitudes of Dutch top managers and works councils as to the functioning of the latter, in bad vis-à -vis good times. The overall conclusion from our probit analyses is that the way in which management and works councils interact, and hence the way in which codetermination is implemented, makes all the difference to the firm’s economic position. Our most compelling finding relates to the role of management: a positive attitude of managers toward the works council is positively associated with organizational performance, both in the private and the public sector. In the private sector, this result is even reinforced in times of reorganization.

Suggested Citation

  • A. van den Berg & Y.K. Grift & A. van Witteloostuijn, 2008. "Works councils and organizational performance : The role of top managers’ and works councils’ attitudes in bad vis-à -vis good times," Working Papers 08-14, Utrecht School of Economics.
  • Handle: RePEc:use:tkiwps:0814
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    File URL: https://dspace.library.uu.nl/bitstream/handle/1874/309750/08_14.pdf
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    References listed on IDEAS

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    1. Addison, John T., 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," IZA Discussion Papers 1620, Institute for the Study of Labor (IZA).
    2. Richard B. Freeman & Edward P. Lazear, 1995. "An Economic Analysis of Works Councils," NBER Chapters,in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 27-52 National Bureau of Economic Research, Inc.
    3. Robert O’brien, 2007. "A Caution Regarding Rules of Thumb for Variance Inflation Factors," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(5), pages 673-690, October.
    4. John T. Addison, 2005. "THE DETERMINANTS OF FIRM PERFORMANCE: UNIONS, WORKS COUNCILS, AND EMPLOYEE INVOLVEMENT/HIGH-PERFORMANCE WORK PRACTICES," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 406-450, July.
    5. Addison, John T & Schnabel, Claus & Wagner, Joachim, 2001. "Work Councils in Germany: Their Effects on Establishment Performance," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 659-694, October.
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    Keywords

    mutual relationship and collaboration between works councils and management; organizational performance;

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