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  • June 2019 Newsletter
 
Or do good managers enhance it?
View this email online
IZA World of Labor logo
Bosses matter: The effects of managers on workers’ performance

Firms make extensive investments in their employees: they invest in the hiring of workers that match the firm’s needs, and they invest in workers’ human capital once they are employed.

New research suggests that the hiring and training of good managers may carry substantial weight when it comes to workers’ performance. Kathryn L. Shaw from Stanford University and the US National Bureau of Economic Research also says that a good boss can have a substantial positive effect on the productivity of a typical worker.

While much has been written about the effects of working with good peers, the effects of working with good supervisors appear much more substantial.

Here are a few positive effects good managers have on workers' performance:
 

  • Being assigned to a good boss increases personal productivity relative to being assigned to a bad boss and the effects are large.

  • Good managers have some universal traits: they coach and teach and offer insight into the strategy of the firm and the worker’s career goals in light of that strategy.

  • The effects of good bosses dominate the effects of good peers.

  • Workers quit bad managers and bad managers are more likely to leave the firm.


Shaw adds that: "Research also shows workers are happier with a good boss." IZA World of Labor author Jo Ritzen has also discovered that happiness is key to a productive economy. In his article, he writes: "Happiness of the working population in turn contributes toward a more productive economy."


What are the characteristics of good managers? - Find out in Kathryn L. Shaw's full article.

...................................................................................................................................................

Read further articles on behavioral and personnel economics:
 

  • Anonymous job applications and hiring discrimination (Deutsch) (Español) by Ulf Rinne

  • Are happy workers more productive? (Deutsch) (Español) by Eugenio Proto

  • Happiness as a guide to labor market policy (Deutsch) (Español) by Jo Ritzen

  • Multitasking at work: Do firms get what they pay for? (Deutsch) by Ann P. Bartel

Read related commentaries:
 

  • Working in family firms by Thomas Breda

  • Workplace sickness absence by Wolter Hassink

...................................................................................................................................................

While women’s labor force participation has risen in
many countries, rates remain quite low in
other countries and regions.

Women at work around the world

Read more articles on female labor force participation.

...................................................................................................................................................

Top stories

News and views in labor economics

New campaign calls for employer duty to prevent sexual harassment at work

New campaign calls for employer duty to prevent sexual harassment at work

Employers should be legally liable if they fail to protect their staff from sexual harassment at work.

Employment rate among workers in Ireland at a record high

Employment rate among workers aged 25-54 in Ireland at a record high

The number of workers aged 24-54 who are employed has risen to nearly 80% in the first quarter of 2019. 

Global population to rise by 2 billion over the next 30 years

Global population to rise by 2 billion over next 30 years, says new UN population report

There will be 9.7 billion people living on Earth by 2050, according to the latest UN World Population Prospects 2019. 

Migrants are being exploited by food app couriers

Migrants are being exploited by food app couriers in France

With the rise of Uber and Deliveroo, food delivery has become a multibillion-euro business. 

...................................................................................................................................................

Latest articles

  • University study abroad and graduates’ employability (Deutsch) by Giorgio Di Pietro

  • Compliance with labor laws in developing countries (Deutsch) by Haroon Bhorat, Ravi Kanbur and Benjamin Stanwix

  • Immigrants and entrepreneurship (Deutsch) by Magnus Lofstrom and Chunbei Wang

  • Measuring individual risk preferences (Deutsch) by Catherine C. Eckel


All one-pagers are also available to read and download in German. Find out more.

One-pagers are now available in Spanish. Take a look at the Spanish key topics page.

...................................................................................................................................................

Events

Upcoming events and calls for papers

  • 3rd IZA Labor Statistics Workshop: Contract Work July 23 - July 24, Upjohn Institute, Kalamazoo, USA

  • Summer Academy on the Future of Work August 12 - August 13, Turin, Italy

  • IZA Workshop on Labor Market Institutions September 6 - September 7, Bonn, Germany

  • 2nd IDSC of IZA/CAIS Workshop: Matching Workers and Jobs Online September 20 - September 21, Bochum, Germany

  • 4th IZA Workshop on the Economics of Education September 23 - September 25, Bonn, Germany

  • 3rd IZA/HSE Workshop on Skills and Preferences and Labor Market Outcomes in Post-transition and Emerging Economies September 26 - September 27, St. Petersburg, Russia
     

View all upcoming events and calls for papers on our website.

...................................................................................................................................................

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