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 article 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
Schools and Departments: School of Business, Management and Economics > Business and Management
Research Centres and Groups: Future of Work Hub
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Depositing User: Chidiebere Ogbonnaya
Date Deposited: 28 Aug 2018 13:33
Last Modified: 12 Jul 2019 14:30
URI: http://sro.sussex.ac.uk/id/eprint/78313

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