oalogo2  

AUTHOR(S):

Ilona Cserháti, Tibor Keresztély, Tibor Takács

 

TITLE

Analysis of Employee Well-Being and Productivity by Decomposition

pdf PDF

ABSTRACT

The paper examines the relationship between the workplace well-being and productivity in the European countries. It is quantified by the Oaxaca decomposition technique, how the job-satisfaction may increase the productivity in the different regions. The developed economies are considered according to the four main social models (Anglo-Saxon, Nordic, Mediterranean and continental countries), while three groups of transition economies are distinguished (Baltic, Middle and South-Eastern European countries). It has been found that workplace well-being have a relevant impact on productivity in the European economies, but the strength of this impact positively correlates with the development level.

KEYWORDS

Workplace well-being, productivity, Oaxaca decomposition

REFERENCES

[1] M. Arntz, T. Gregory and U. Zierahn, 'The risk for automation of jobs in OECD countries: a comparative analysis’, OECD Social, Employment and Migration Working Papers, No. 189, OECD Publishing Paris, 2016. dx.doi.org/10.1787/5jlz9h56dv7-en

[2] N. M. Ashkanasy, R. J. Bennett and M. J. Martinko (editors), 'Understanding the high performance workplace’, in: Understanding the high performance workplace: the line between motivation and abuse, Routledge, New York, USA, 2016.

[3] R. D. Arvey, T. J. Bouchard, N. L. Segal and L. M. Abraham, 'Job satisfaction: environmental and genetic components’, Journal of Applied Psychology, Vol. 74, No. 2, 1989, pp. 187-192. dx.doi.org/10.1037/0021-9010.74.2.187

[4] D. H. Autor, 'Wage Density Decompositions, MIT Labour Economics, 14.662, Lecture Note 1, 2015.

[5] P. Bockerman and P. Ilmakunnas, 'The job satisfaction-productivity nexus: a study using matched survey and register data’, Industrial and Labor Relations Review, Vol. 65, No. 2, pp. 244-262, 2012.

[6] A. Bryson, J. Forth and L. Stokes, 'Does worker wellbeing affect workplace performance?’, London School of Economics and Political Science, Centre for Economic Performance Discussion Paper No. 1363, ISSN 2042-2695, July 2015.

[7] B. Cambré, E. Kippers, M. van Veldhoven and H. de Vitte, 'Jobs and organisations: explaining group level differences in job satisfaction in the banking sector’, Personnel Review, Vol. 41, No. 2, 2012, pp. 41-59.

[8] I. Cserháti and T. Keresztély, 'Methodological issues on measuring employee wellbeing’, Journal of International Publications, Economy & Business, Vol.11, 2017, pp. 41-51.

[9] S. Easton and D. van Laar, User manual of the Work-Related Quality of Life (WRQoL) Scale: a measure of quality of working life. University of Portsmouth, Portsmouth, 2012.

[10] D. Fisher, 'Mood and emotions while working: missing pieces of job satisfaction?’, Journal of Organizational Behavior, Vol. 21, No. 2, pp. 185-202, 2000.

[11] J. K. Harter, F. L. Schmidt and T. L. Hayes, 'Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: a meta-analysis’, RegionImpact of job satisfactionImpact of other characteristicsAnglo-Saxon89.2%10.8%Nordic82.0%18.0%Continental62.9%37.1%Mediterranean41.5%58.5%Middle European40.4%59.6%Baltic35.8%64.2%South-Eastern European22.2%77.8%All countries48.8%51.2% Journal of Applied Psychology, Vol 87, No. 2, 2002, pp 268-279.

[12] L-C. Huang, D. Ahlstrom, A. Y-P. Lee, S-Y. Chen and M-J. Hsieh, 'High performance work systems, employee well-being, and job involvement: an empirical study’, Personnel Review, Vol. 45, No. 2, 2016, pp. 296-314.

[13] S. Johnson, I. Robertson and C. L. Cooper, 'Well-being: productivity & happiness at work’, Springer 2017.

[14] T. A. Judge, D. Heller and M. K. Mount, 'Five-factor model of personality and job satisfaction: a meta-analysis’, Journal of Applied Psychology, Vol. 87, No. 3, pp. 530–541, 2002.

[15] S. Lavy and H. Littman-Ovadia, 'My better self – using strength at work and work productivity, organizational citizenship behavior, and satisfaction’, Journal of Career Development, Vol. 44, No. 2, 2017, pp. 95-109.

[16] R. Layard, Happiness: lessons from a new science, 2nd edition, Penguin Books, 2011.

[17] R. Oaxaca, 'Male-female wage differentials in urban labor markets’, International Economic Review, Vol. 14, No. 3, 1973, pp. 693-709.

[18] OECD, 'The OECD Better Life Initiative’, The Statistics Newsletter, Issue No. 52, 2011.

[19] A. J. Oswald, E. Proto and D. Sgroi, 'Happiness and productivity’, IZA Discussion Papers No, 4645, 2009.

[20] M. Patterson, P. Warr and M. West, 'Organizational climate and company productivity: the role of employee affect and employee level’, Journal of Occupational and Organizational Psychology, Vol. 77, No. 2, pp. 193-216, 2014.

[21] E. Proto, 'Are happy workers more productive? – Firms concerns about the well-being of their employees are largely supported by the evidence’, IZA World of Labor, No. 315, 2016.

[22] K. Pugliesi, 'The consequences of emotional labor: effects on work stress, job satisfaction and well-being’, Motivation and Emotion, Vol. 23, No. 2, pp. 125-154, 1999.

[23] M. R. B. Rubel and D. M. H. Kee, 'Quality of work life and employee performance: antecedent and outcome of job satisfaction in partial least square (PLS) ’, World Applied Sciences Journal, Vol. 31, No. 4, 2014, pp. 456-467.

[24] J. Stiglitz, A. Sen and J. P. Fitoussi, 'Report of the Commission on the Measurement of Economic Performance and Social Progress. Paris’, available online from the Commission on the Measurement of Economic Performance and Social Progress: http://www.stiglitz-sen-fitoussi.fr/en/index.htm 2009.

[25] UNDP: Human Development Report, ISBN 978-92-1-126413-5, 2016.

Cite this paper

Ilona Cserháti, Tibor Keresztély, Tibor Takács. (2018) Analysis of Employee Well-Being and Productivity by Decomposition. International Journal of Economics and Management Systems, 3, 19-25

 

cc.png
Copyright © 2018 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0