Journal article:
Middle Managers, Personnel Turnover, and Performance : A Long‐Term Field Experiment in a Retail Chain

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Date
2022
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Friebel, Guido
Heinz, Matthias
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Abstract
In a randomized controlled trial, a large retail chain’s Chief Executive Officer (CEO) sets new goals for the managers of the treated stores by asking them to “do what they can” to reduce the employee quit rate. The treatment decreases the quit rate by a fifth to a quarter, lasting nine months before petering out, but reappearing after a reminder. There is no treatment effect on sales. Further analysis reveals that treated store managers spend more time on human resources (HR) and less on customer service. Our findings show that middle managers are instrumental in reducing personnel turnover, but they face a trade-off between investing in different activities in a multitasking environment with limited resources. The treatment does produce efficiency gains. However, these occur only at the firm level.
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Subject (DDC)
330 Economics
Keywords
organizations; randomized controlled trial (RCT); insider econometrics; goal setting; communication; HR; personnel turnover and firm performance
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Management Science ; 68 (2022), 1. - pp. 211-229. - INFORMS. - ISSN 0025-1909. - eISSN 1526-5501
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Cite This
ISO 690FRIEBEL, Guido, Matthias HEINZ, Nikolay ZUBANOV, 2022. Middle Managers, Personnel Turnover, and Performance : A Long‐Term Field Experiment in a Retail Chain. In: Management Science. INFORMS. 68(1), pp. 211-229. ISSN 0025-1909. eISSN 1526-5501. Available under: doi: 10.1287/mnsc.2020.3905
BibTex
@article{Friebel2022Middl-52963,
  year={2022},
  doi={10.1287/mnsc.2020.3905},
  title={Middle Managers, Personnel Turnover, and Performance : A Long‐Term Field Experiment in a Retail Chain},
  number={1},
  volume={68},
  issn={0025-1909},
  journal={Management Science},
  pages={211--229},
  author={Friebel, Guido and Heinz, Matthias and Zubanov, Nikolay}
}
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