Teams, Autonomy, and the Financial Performance of Firms: New Evidence from Panel Data

Abstract

I use the 1998–2004 Workplace Employee Relations Survey (WERS) panel data set of British establishments to analyze the effect of team production (either autonomous/self-managed or closely managed) on financial performance. The pattern of evidence is consistent with a positive association between team production in an establishment's largest occupational group and the likelihood of improved financial performance for that establishment. However, the results are mixed concerning whether the positive effects of teams are larger for autonomous teams versus nonautonomous teams.