High-involvement management, economic recession, well-being and organizational performance

Wood, Stephen and Ogbonnaya, Chidiebere (2018) High-involvement management, economic recession, well-being and organizational performance. Journal of Management, 44 (8). pp. 3070-3095. ISSN 0149-2063

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Abstract

High-involvement management was introduced as a means of overcoming economic crises; but it has been argued that the inevitability of cost-cutting measures when organizations face such crises would undermine its efficacy. This paper first presents theories of why tensions may exist between high-involvement management and actions typically taken by management during recessions, such as wage and employment freezes. It then reports research aimed at testing whether the performance effects of high-involvement management were lower in organizations where management took such actions to combat the post-2008 recession, due to their adverse effects on employees' job satisfaction and well-being – and even whether high-involvement management still had a performance premium after the recession. Using data from Britain’s Workplace Employment Relations Survey of 2011, the research shows that both dimensions of high-involvement management – role- and organizational-involvement management – continued to be positively associated with economic performance as the economy came out of recession. Recessionary actions were negatively related to both employee job satisfaction and well-being, while job satisfaction mediated the relationship between role-involvement management and economic performance, which is consistent with mutual gains theory. However, recessionary action reduced the positive effect that role-involvement management had on job satisfaction and well-being, and thus may have reduced its positive performance effects. In the case of organizational-involvement management, it reduced the level of job dissatisfaction and ill-being, suggesting that it may provide workers with more information and greater certainty about the future.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Faculty of Social Sciences
Depositing User: Pure Connector
Date Deposited: 23 Sep 2016 23:55
Last Modified: 22 Jul 2020 00:55
URI: https://ueaeprints.uea.ac.uk/id/eprint/59741
DOI: 10.1177/0149206316659111

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