Working Paper: NBER ID: w27680
Authors: Jing Cai; Shingyi Wang
Abstract: Using a randomized experiment with an automobile manufacturing firm in China, we measure the effects of letting workers evaluate their managers on worker and firm outcomes. In the treatment teams, workers evaluate their supervisors monthly. We find that providing feedback leads to significant reductions in worker turnover and increases in team-level productivity. In addition, workers report higher levels of happiness and positive mood. The evidence suggests that these results are driven by changes in the behavior of managers and an overall better relationship between managers and workers.
Keywords: management practices; worker evaluations; employee turnover; productivity; China
JEL Codes: D22; O1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Workers evaluate their managers (M54) | Reduction in worker turnover (J63) |
| Workers evaluate their managers (M54) | Increase in team-level productivity (O49) |
| Reduction in worker turnover (J63) | Increase in team-level productivity (O49) |
| Workers evaluate their managers (M54) | Improvement in worker well-being (J89) |
| Improved managerial behavior (M54) | Improvement in worker well-being (J89) |
| Workers evaluate their managers (M54) | Improved managerial behavior (M54) |
| Improved managerial behavior (M54) | Reduction in worker turnover (J63) |