Management Practices, Workforce Selection, and Productivity 2016 Conference of the Global Forum on Productivity Lisbon, 7-8 July 2016 Stefan Bender (Bundesbank), Nicholas Bloom (Stanford), David Card (UC Berkeley), John Van Reenen (LSE), Stefanie Wolter (IAB) Disclaimer: Any opinions expressed in this paper are those of the authors and do not necessarily reflect the views of the Deutsche Bundesbank or the Institute for Employment Research.
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Management Practices, Workforce Selection, and Productivity
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Management Practices, Workforce
Selection, and Productivity
2016 Conference of the Global Forum on Productivity
Lisbon, 7-8 July 2016
Stefan Bender (Bundesbank), Nicholas Bloom (Stanford),
David Card (UC Berkeley), John Van Reenen (LSE),
Stefanie Wolter (IAB)
Disclaimer: Any opinions expressed in this paper are those of the authors and do not necessarily reflect the views
of the Deutsche Bundesbank or the Institute for Employment Research.
Are Management practices just due to
folks like these?
MOTIVATION I
• Big dispersion in firm productivity (e.g. Syverson, 2011)
• Management practices matter a lot for productivity
– Personnel Economics (Ichniowski, Shaw &
Prennushi, 1997; Lazear, 2000; HLE, 2011)
– World Management Survey (WMS): linked to firm total
factor productivity [TFP] (Bloom & Van Reenen, 2007;
Bloom et al, 2013) & country TFP (e.g. Bloom et al,
2015 find ~30% of TFP gaps with US management
related)
MOTIVATION II
• Do “good management practices” simply reflect human
capital: e.g. more talented CEOs (Lucas, 1978), senior
managers, or employees in general?
• Or are these firms more than just the sum of the
“atoms” of human capital of managers– e.g. Toyota
corporate culture persists when managers leave or
founder dies?
IEB: Data: German Employer-Employee Panel
Management Practices & Human Capital
Productivity
WMS Data: World Management Survey
Selection – Inflows & Outflows
Extensions & Robustness
World Management Survey (12,342 firms, 4 major waves:
2004, 2006, 2009, 2014; 34 countries)
Medium sized manufacturing firms(50-5,000 workers, median≈250)
Now extended to Hospitals, Retail, Schools, etc.
1) Developing management questions
• Scorecard for 18 monitoring (e.g. lean), targets & people (e.g.
pay, promotions, retention and hiring). ≈45 minute phone