Abstract

Managers often implement new organizational practices to improve firm performance while neglecting possible side effects. This study examines the relationship between 6 organizational practices and both productivity and injury rates in 86 small manufacturing firms. The use of performance-based pay was associated with higher injury rates and lower productivity (on 1 of 2 measures). The opposite pattern held for training: Training hours were negatively related to the injury rate and positively related to 1 measure of productivity. Surprisingly, higher hours worked per week was associated with a lower injury rate and also with lower productivity. The use of teams was associated with a lower injury rate but was unrelated to productivity. The potential interaction between hazard control measures and organizational practices in predicting injury rates is also discussed.

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