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Works Councils and Organizational Performance

Abstract  

Most studies on the effects of works councils simply analyze whether their mere presence contributes to firm performance.
This study seeks to offer a contribution to the 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.

  • Content Type Journal Article
  • Pages 1-21
  • DOI 10.1007/s12122-011-9105-x
  • Authors
    • Annette van den Berg, Utrecht University School of Economics, Utrecht University, Janskerkhof 12, 3512 BL Utrecht, The Netherlands
    • Yolanda Grift, Utrecht University School of Economics, Utrecht University, Janskerkhof 12, 3512 BL Utrecht, The Netherlands
    • Arjen van Witteloostuijn, Utrecht University School of Economics, Utrecht University, Janskerkhof 12, 3512 BL Utrecht, The Netherlands
    • Journal Journal of Labor Research
    • Online ISSN 1936-4768
    • Print ISSN 0195-3613
Posted in: Journal Article Abstracts on 03/13/2011 | Link to this post on IFP |
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