Study reveals how decision rights allocation impacts firm success and labor relations
The article explores how decision-making rights on the shop floor are connected to different aspects of a company and its workers. The researchers used transaction cost economics and organization theory to study this. They collected data from surveys in the food and electronics industries in Spain. The findings show that factors like firm size, ownership, age, and union presence influence decision rights allocation. They also found that employer behavior has a bigger impact on decision-making than employee behavior.