(Translated by https://www.hiragana.jp/)
Mapping the Dynamics of Management Styles— Evidence from German Survey Data
IDEAS home Printed from https://ideas.repec.org/p/rco/dpaper/481.html
   My bibliography  Save this paper

Mapping the Dynamics of Management Styles— Evidence from German Survey Data

Author

Listed:
  • Florian Englmaier

    (LMU Munich)

  • Michael Hofmann

    (LMU München)

  • Stefanie Wolter

    (IAB Nürnberg)

Abstract

We study how firms adjust the bundles of management practices they adopt over time, using repeated survey data collected in Germany from 2012 to 2018. By employing unsupervised machine learning, we leverage high-dimensional data on human resource policies to describe clusters of management practices (management styles). Our results suggest that two management styles exist, one of which employs many and highly structured practices, while the other lacks these practices but retains training measures. We document sizeable differences in styles across German firms, which can (only) partially be explained by firm characteristics. Further, we show that management is highly persistent over time, in part because newly adopted practices are discontinued after a short time. We suggest miscalculations of cots-benefit trade-offs and non-fitting corporate culture as potential hindrances of adopting structured management. In light of previous findings that structured management increases firm performance, our findings have important policy implications since they show that firms which are managed in an unstructured way fail to catch up and will continue to underperform.

Suggested Citation

  • Florian Englmaier & Michael Hofmann & Stefanie Wolter, 2023. "Mapping the Dynamics of Management Styles— Evidence from German Survey Data," Rationality and Competition Discussion Paper Series 481, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:481
    as

    Download full text from publisher

    File URL: https://rationality-and-competition.de/wp-content/uploads/discussion_paper/481.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    2. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2018. "The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 635-687.
    3. Nicholas Bloom & Carol Propper & Stephan Seiler & John Van Reenen, 2015. "The Impact of Competition on Management Quality: Evidence from Public Hospitals," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 457-489.
    4. Nicholas Bloom & Aprajit Mahajan & David McKenzie & John Roberts, 2020. "Do Management Interventions Last? Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 198-219, April.
    5. Nicholas Bloom & Renata Lemos & Raffaella Sadun & Daniela Scur & John Reenen, 2014. "Jeea-Fbbva Lecture 2013: The New Empirical Economics Of Management," Journal of the European Economic Association, European Economic Association, vol. 12(4), pages 835-876, August.
    6. Bloom, Nicholas & Sadun, Raffaella & Lemos, Renata & Scur, Daniela & Van Reenen, John, 2014. "The new empirical economics of management," LSE Research Online Documents on Economics 58009, London School of Economics and Political Science, LSE Library.
    7. Oriana Bandiera & Andrea Prat & Stephen Hansen & Raffaella Sadun, 2020. "CEO Behavior and Firm Performance," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1325-1369.
    8. Ruf, Kevin & Mackeben, Jan & Haepp, Tobias & Wolter, Stefanie & Grunau, Philipp, 2020. "LPP - Linked Personnel Panel 1819: Quality of work and economic success : longitudinal study in German establishments (data documentation on the fourth wave)," FDZ Datenreport. Documentation on Labour Market Data 202011_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Casey Ichniowski & Kathryn Shaw, 2003. "Beyond Incentive Pay: Insiders' Estimates of the Value of Complementary Human Resource Management Practices," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 155-180, Winter.
    10. repec:oup:qjecon:v:128:y:2012:i:1:p:1-51 is not listed on IDEAS
    11. repec:iab:iabfda:202011(en is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anna Valero, 2021. "Education and management practices," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 302-322.
    2. Sivropoulos-Valero, Anna Valero, 2021. "Education and management practices," LSE Research Online Documents on Economics 114436, London School of Economics and Political Science, LSE Library.
    3. Anna Valero, 2021. "Education and management practices," POID Working Papers 007, Centre for Economic Performance, LSE.
    4. Sivropoulos-Valero, Anna Alexandra, 2021. "Education and economic growth," LSE Research Online Documents on Economics 114434, London School of Economics and Political Science, LSE Library.
    5. Anna Valero, 2021. "Education and economic growth," POID Working Papers 006, Centre for Economic Performance, LSE.
    6. Anna Valero, 2021. "Education and economic growth," CEP Discussion Papers dp1764, Centre for Economic Performance, LSE.
    7. Girum Abebe & Marcel Fafchamps & Michael Koelle & Simon Quinn, 2019. "Learning Management Through Matching: A Field Experiment Using Mechanism Design," CSAE Working Paper Series 2019-11, Centre for the Study of African Economies, University of Oxford.
    8. Baltrunaite, Audinga & Bovini, Giulia & Mocetti, Sauro, 2023. "Managerial talent and managerial practices: Are they complements?," Journal of Corporate Finance, Elsevier, vol. 79(C).
    9. Sunghoon Chung, 2023. "Management Practices in Korean Manufacturers: A Striking Level Difference between Production and Incentive Management," Korean Economic Review, Korean Economic Association, vol. 39, pages 103-135.
    10. Anand, Gautam & Atluri, Aishwarya & Crawfurd, Lee & Pugatch, Todd & Sheth, Ketki, 2023. "Improving school management in low and middle income countries: A systematic review," Economics of Education Review, Elsevier, vol. 97(C).
    11. Sharma, Smriti & Tarp, Finn, 2018. "Does managerial personality matter? Evidence from firms in Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 432-445.
    12. Florian Englmaier & Katharina Schüßler, 2015. "Complementarities of HRM Practices - A Case for Employing Multiple Methods and Integrating Multiple Fields," CESifo Working Paper Series 5249, CESifo.
    13. Andy Feng & Anna Valero, 2020. "Skill-Biased Management: Evidence from Manufacturing Firms," The Economic Journal, Royal Economic Society, vol. 130(628), pages 1057-1080.
    14. Nguyen Tuan Kiet & Ho Huu Phuong Chi & Trinh Cong Duc, 2022. "Management practices of firms: A study in the Vietnamese Mekong Delta," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1185-1208, July.
    15. Chicas Romero,Mauricio & Bedoya,Juan & Yanez Pagans,Monica & Silveyra De La Garza,Marcela Lucia & De Hoyos Navarro,Rafael E., 2021. "School Management, Grants, and Test Scores : Experimental Evidence from Mexico," Policy Research Working Paper Series 9535, The World Bank.
    16. Aga,Gemechu A. & Campos,Francisco Moraes Leitao & Conconi,Adriana & Davies,Elwyn Adriaan Robin & Geginat,Carolin, 2021. "Are Firm Capabilities Holding Back Firms in Mozambique ?," Policy Research Working Paper Series 9724, The World Bank.
    17. Binz, Oliver & Ferracuti, Elia & Joos, Peter, 2023. "Investment, inflation, and the role of internal information systems as a transmission channel," Journal of Accounting and Economics, Elsevier, vol. 76(2).
    18. Englmaier, Florian & Schüßler, Katharina, 2015. "Complementarities of HRM Practices," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 503, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    19. Romero, Mauricio & Bedoya, Juan & Yanez-Pagans, Monica & Silveyra, Marcela & de Hoyos, Rafael, 2022. "Direct vs indirect management training: Experimental evidence from schools in Mexico," Journal of Development Economics, Elsevier, vol. 154(C).
    20. Yong Soo Keong & Partha Sen & Cao Jing, 2024. "An Inquiry into the North-South Management Gap in China," CESifo Working Paper Series 10952, CESifo.

    More about this item

    Keywords

    management practices; personnel management; panel data analysis; machine learning;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rco:dpaper:481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Viviana Lalli (email available below). General contact details of provider: https://rationality-and-competition.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.