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Abstract:

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CentrePiece Article
In brief: Management in America
Nicholas Bloom, Erik Brynjolfsson, Lucia Foster, Ron Jarmin, Megha Patnaik, Itay Saporta-Eksten and John Van Reenen May 2014
Paper No' CEPCP423:
Full Paper (pdf)

CentrePiece 19 (1) Spring 2014


JEL Classification: M1


Tags: it; management; productivity; organization

There are strong links between the performance of US manufacturing plants and the quality of their systems of monitoring, targets and incentives, according to research by Professor Nicholas Bloom and colleagues. Their analysis of data on more than 30,000 establishments, gathered in the first large-scale survey of management practices in America, finds that effective performance monitoring, targets and incentives are strongly linked to more intensive use of IT. The study also finds that there is huge variation in management in America: for example, establishments in America’s South and Midwest have more structured management practices on average than those in the Northeast and West. Higher management scores have a strong relationship with improved productivity and profits.

This article summarises 'IT and Management in America' by Nicholas Bloom, Erik Brynfolfsson, Lucia Foster, Ron Jarmin, Megha Patnaik, Itay Saporta-Eksten and John Van Reenen, CEP Discussion Paper No. 1258, February 2014.