Template-Type: ReDIF-Paper 1.0
Author-Name: C Green
Author-Name-First: C
Author-Name-Last: Green
Author-Name: J S Heywood
Author-Name-First: J S
Author-Name-Last: Heywood
Title: Profit Sharing and the Quality of Relations with the Boss
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 data on
satisfaction with the boss, we initially show that workers under profit sharing tend to
have lower satisfaction with their supervisor. Additional estimates show this is largely
generated by groups of workers who would be least likely to respond to increased
supervisory pressure with increase effort: women, those with dependents and those with
health limitations. Despite this finding, profit sharing seems to have little or no influence
on overall job satisfaction as the reduction in satisfaction with the boss is offset with
increased satisfaction with earnings, a finding consistent with profit sharing enhancing
productivity and earnings.
Creation-Date: 2008
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/ProfitSharing.pdf
File-Format: application/pdf
Number: 596078
Classification-JEL: 
Keywords: Mutual Monitoring, Job Satisfaction, SupervisionJEL CODES: J28, J33, J53.
Handle: RePEc:lan:wpaper:596078