In the absence of any independently sourced measures, all the economic
outcomes considered are based on an assessment made by the managerial respond-
ent according toWve-point scales. Wall et al. ( 2004 ) have nonetheless shown that
such data are consistent with the assumed more ‘objective’ audited accounting
data. The three performance measures are not strongly related to each other
(the Spearman correlation coeYcient is 0. 48 forWnancial performance and labor
productivity, 0. 26 for labor productivity and change in labor productivity, and 0. 20
forWnancial performance and change in labor productivity), and certainly cannot be
summarized in one overall organizational performance scale.
Using regression analyses, we found that high-involvement management has a
signiWcant independent association withWnancial performance (P-value¼ 0. 042 )
and labor productivity (P-value¼ 0. 001 ). Equal opportunity and family-oriented
Xexible management are not related to either, and none of the orientations is
associated with the change in labor productivity. Of the motivational and other
practices excluded from the orientation, variable pay is associated with one eco-
nomic outcome, change in productivity (P¼ 0. 03 ). Moreover, this association
between variable pay and productivity change is strengthened by high-involvement
management, which means that high-involvement management only has a sig-
niWcant eVect when employees’ pay varies with performance.
In addition, equal-opportunity management may have a positive eVect on
Wnancial performance if high-involvement management is practiced in the work-
place. Equal-opportunity management may also have a positive eVect on the level
of productivity where high-involvement management exists, but this only holds for
the private sector.
Labor turnover is measured as the ratio of the number of employees who
resigned from the establishment in the twelve months prior to the interview as a
proportion of the total employees at the time of the interview; and absenteeism is
the percentage of work days lost through employee sickness or absence in the
workplace over the last twelve months.
Equal-opportunity (P¼ 0. 034 ) and high-involvement management (P¼ 0. 049 )
are associated with lower levels of labor turnover. The presence of both does not
strengthen these associations. Family-orientedXexible management is, however,
not related to labor turnover. Nor are any of the motivational or work-enrichment
practices, including job security guarantees.
Equal-opportunity management is associated with lower levels of absenteeism
(P¼ 0. 05 ). Moreover, its beneWcial eVects on absence are intensiWed where high-
involvement management is practiced. Family-orientedXexible management is
only related to lower levels of absenteeism (P¼ 0. 04 ) when it is underpinned by
top management valuing family–work balance. Without this, it will have no
impact. Of the motivational supports, job security is positively associated with
absence levels. This implies that people who are more secure in their jobs are less
worried about having time oV, as they feel that doing so will not jeopardize their
management in britain 593