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  6. The Economic Costs and Benefits of Self-Managed Teams Among Skilled Technicians

The Economic Costs and Benefits of Self-Managed Teams Among Skilled Technicians

File(s)
The_Economic_Costs_and_Benefits_ofWP97_19.pdf (220.24 KB)
Permanent Link(s)
https://hdl.handle.net/1813/77016
Collections
CAHRS Working Paper Series
Faculty Publications - Human Resource Studies
ILR Working Papers
Author
Batt, Rosemary
Abstract

This paper estimates the economic costs and benefits of implementing teams among highly-skilled technicians in a large regional telecommunications company. It matches individual survey and objective performance data for 230 employees in matched pairs of traditionally-supervised and self-managed groups. Multivariate regressions with appropriate controls show that teams do the work of supervisors in 60-70% less time, reducing indirect labor costs by 75 percent per team. Objective measures of quality and labor productivity are unaffected. Team members receive additional overtime pay that represents a 4-5 percent annual wage premium, which may be viewed alternatively as a share in the productivity gains associated with innovation or as a premium for learning skills.

Date Issued
1997-09-01
Keywords
economic
•
cost
•
benefit
•
teams
•
technicians
•
labor
•
performance
•
quality
•
productivity
•
wage
•
skill
Type
preprint

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