Empirical evaluation of Human Resource Management (706822)
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Empirical evaluation of human resource management practices - exam summary
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Course
Empirical evaluation of Human Resource Management (706822)
Institution
Humboldt-Universität Zu Berlin (HU Berlin)
Summary of the course Empirical evaluation of human resource management practices at the Humboldt Universität zu Berlin. Written in English, as the course is given. Summarizing all the slides, papers and materials from Moodle. Overall, evertything you need to know for the exam.
empiricial evaluation of human resource management
human resource management practices
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Humboldt-Universität zu Berlin (HU Berlin)
Business Administration
Empirical evaluation of Human Resource Management (706822)
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Syllabus:
Module 1 – Empirical Approach and Management
1) Measuring and Explaining management practices across firms and countries (Bloom &
Reenen, 2007)
2) Why do management practices differ across firms and countries? (Bloom & Reenen, 2010)
3) Does management really work? (Bloom et al., 2012)
4) Scoring grid used in Bloom & Van Reenen study
Module 2 – RCTs in organizations
5) Running Randomised Controlled Trials in Innovation, Entrepreneurship and Groups: An
introductory Guide (Edovald & Firpo, 2016)
6) Field experiments in economics: The past, the present, and the future Levitt & List (2009)
Module 3 – Does management matter?
7) Does management matter? Evidence from India (Bloom et al., 2013)
8) Middle managers, personnel turnover, and performance: a long-term field experiment in a
Retail Chain (Friebel et al., 2012)
Module 4 – Does communication matter?
9) Face-to-face communication in organizations (Battiston et al., 2021)
10) The impact of management practices on employee productivity: a field experiment with
airline captains (Gosnell et al., 2020)
Module 5 – Does working from home work?
11) Does working from home work? Evidence from a Chinese experiment (Bloom et al., 2015)
12) How many jobs can be done at home (Dingel & Neiman, 2020)
13) Work from home & productivity: evidence from personnel & analytic data on IT professionals
(Gibbs et al., 2023)
14) Smart working: work flexibility without constraints (Angelici & Profeta, 2023)
15) ‘Working remotely?’ Selection, Treatment, and Market Provision of remote work (Harrington
& Emanuel, 2023)
16) The working-from-home delusion fades (The economist, 2023)
Module 6 – Team bonus
17) Team incentives and performance: Evidence from a retail chain (Friebel et al., 2017)
Module 7 – Monetary incentives and their impact on organizations
18) When bonuses backfire: Evidence from the workplace (Alfitian et al.2023)
19) Performance pay and prior learning – evidence from a retail chain (Mathei et al., 2021)
20) Information, incentives, and attention: a field experiment on the interaction of management
controls (Manthei et al., 2022)
21) Talking about performance or paying for it? A field experiment on performance reviews and
incentives (Manthei et al., 2022)
Module 8 – Monetary pay and employees performance
22) Social preferences and the response to incentives: evidence from personnel data (Bandiera et
al., 2005)
, 23) Incentives for managers and inequality among workers: evidence from a firm-level
experiment (Bandiera et al., 2007)
Module 9 – Non-monetary practices and their impact on employees
24) Effects of supportive leadership behaviours on employee satisfaction, engagement and
performance: an experimental field investigation (Haeckl & Rege, 2022)
25) What do workplace wellness programs do? Evidence from Illinois workplace wellness study
(Jones et al., 2020)
,Module 1 – Empirical approach and management
1.Measuring and Explaining management practices across firms and countries (Bloom & Reenen,
2007)
Bloom and Van Reenen (2007) study survey data to evaluate whether differences in the use of
management practices can explain productivity differences between firms.
Outcomes:
- Management practices display significant cross-country differences.
- Management practices show even bigger within-country variations.
What could rationalize such variations in management practices?
- (Lack of) competition: creates incentive to reduce inefficiencies and kills off badly managed
firms
- Family firms: due to limited selection into managerial positions (primogeniture) these tend to
be very badly managed.
2.Why do management practices differ across firms and countries? (Bloom & Reenen, 2010)
They used an interview-based evaluation tool to assess 18 basic management practices. Interviewers
give a score from 1-5 on the 18 practices, a scoring grid is used (see document (4)).
Outcomes:
- Core management practices can’t be taken for granted, there are large differences in
management practices.
- Firms with strong managerial processes perform significantly better on productivity,
profitability, growth and longevity.
- The differences in the quality of those processes – and in performance – persist over time,
suggesting that competent management is not easy to replicate.
3.Does management really work? (Bloom et al., 2012)
Three key areas of management practices:
1) Monitoring: monitor what goes on inside the firm, use for continuous improvement.
2) Targets: set the right targets, track the right outcome and take appropriate action if not.
3) Incentives: promoting and rewarding employees based on performance
Management practices matter: there is a solid empirical evidence that good management practices
correlate with higher productivity, survival rate, higher profits, faster growth. But this effect can not
be taken as causal.
False perception: managers’ self-assessments are far away from reality. Overconfidence is a problem
for managers. The authors explained these results by:
- False beliefs of managers who really need to improve
- But also, managers may overestimate the costs and/or underestimate the value of good
management
, Statistical method: OLS regression
Interpretation of functional forms:
Correlation does not mean causality. Regression analysis is not a, since a statistical relationship
doesn’t guarantee a causal relationship between dependent and independent variables. There can be
omitted variables and/or reversed causality.
With experiments, RCTs, we can observe if a relationship is causal, see next module.
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