Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The hidden costs of high performance work practices: evidence from a large German steel company
AU - Frick, Bernd
AU - Goetzen, Ute
AU - Simmons, Robert
PY - 2013
Y1 - 2013
N2 - The authors use monthly data from 25 production units in a German steel plant over the period 1992 to 2001 to test for impacts of teamwork and performance-related pay on productivity, accidents, and absence rates. They find that teamwork and performance pay provide incentives to workers to increase quantity at the expense of quality and to run the machines for long hours instead of spending time on maintenance. Absenteeism increases when a combination of teamwork and performance pay is applied to production units that previously had neither. Results suggest that teamwork and performance pay can create hidden costs for manufacturers and do not necessarily increase worker productivity.
AB - The authors use monthly data from 25 production units in a German steel plant over the period 1992 to 2001 to test for impacts of teamwork and performance-related pay on productivity, accidents, and absence rates. They find that teamwork and performance pay provide incentives to workers to increase quantity at the expense of quality and to run the machines for long hours instead of spending time on maintenance. Absenteeism increases when a combination of teamwork and performance pay is applied to production units that previously had neither. Results suggest that teamwork and performance pay can create hidden costs for manufacturers and do not necessarily increase worker productivity.
M3 - Journal article
VL - 66
SP - 198
EP - 224
JO - Industrial and Labor Relations Review
JF - Industrial and Labor Relations Review
SN - 0019-7939
IS - 1
ER -