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Profit sharing and the quality of relations with the boss

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  • Green, Colin P.
  • Heywood, John S.

Abstract

Profit sharing generates conflicting changes in the relationship between supervisors and workers. It may increase cooperation and helping effort. At the same time it can increase direct monitoring and pressure by the supervisor, and mutual monitoring and peer pressure from other workers that is transmitted through the supervisor. Using UK data on satisfaction with the boss, we show in both cross-section and panel estimates that workers under profit sharing tend to have lower satisfaction with their supervisor. This result persists even as profit sharing has no or a positive influence on other dimensions of job satisfaction. Additional estimates show that lower satisfaction with the supervisor is largely generated by women, who may be less able to respond to peer pressure, and by non-union workers, who may have more to lose by failing to respond to peer pressure.

Suggested Citation

  • Green, Colin P. & Heywood, John S., 2010. "Profit sharing and the quality of relations with the boss," Labour Economics, Elsevier, vol. 17(5), pages 859-867, October.
  • Handle: RePEc:eee:labeco:v:17:y:2010:i:5:p:859-867
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    Cited by:

    1. Alex Bryson & Andrew E. Clark & Colin P. Green, 2021. "Footsie, Yeah! Share Prices and Worker Wellbeing," DoQSS Working Papers 21-26, Quantitative Social Science - UCL Social Research Institute, University College London.
    2. Fathi Fakhfakh & Andrew Robinson & Aguibou Tall, 2019. "Financial Participation and Collective Conflicts: Evidence from French Firms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 674-703, October.
    3. Bryson, Alex & Clark, Andrew E. & Freeman, Richard B. & Green, Colin P., 2016. "Share capitalism and worker wellbeing," Labour Economics, Elsevier, vol. 42(C), pages 151-158.
    4. Benjamin M. Artz & Amanda H. Goodall & Andrew J. Oswald, 2017. "Boss Competence and Worker Well-Being," ILR Review, Cornell University, ILR School, vol. 70(2), pages 419-450, March.
    5. Green, Colin P. & Heywood, John S., 2022. "Does Performance Pay Influence Hours of Work?," IZA Discussion Papers 15474, Institute of Labor Economics (IZA).
    6. Petr Petera & Jana Fibírová, 2015. "Basic Approaches to Profit-Sharing and Ideas for Utilization [Základní přístupy k "profit-sharingu" a náměty na další využití]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2015(3), pages 97-117.
    7. Green, Colin P. & Heywood, John S., 2023. "Performance pay, work hours and employee health in the UK," Labour Economics, Elsevier, vol. 84(C).
    8. Belloc, Filippo, 2022. "Profit sharing and innovation across organizational layers," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 598-623.

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    More about this item

    Keywords

    Mutual monitoring Job satisfaction Supervision Profit shares;

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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