Corporate policy, manager control and staff reduction in Germany : theoretical approaches and empirical analysis using data from the IAB establishment panel

Abstract

"Since the 1980s drastic staff reductions have been observed in many German firms which are lasting until today and have rather gained in intensity. Previous theoretical and empirical studies put this down in particular to unfavourable demand conditions on the goods market, wages that are too high and rigid, or also innovations in process technology. The focus of the analysis in this paper on the other hand is placed firstly on the consequences of certain corporate policy strategies. In detail, in this context the paper examines the personnel-related consequences of organisational adjustment measures as well as changes in the company boundaries as a result of splitting off or integrating parts of the firm. Secondly, staff reduction measures are analysed against the background of the corporate governance debate. Here the paper goes into the question as to whether staff cuts can also be the result of a pattern of manager behaviour that has changed under the influence of mechanisms of manager control. It is possible that influences of the capital or manager market induce patterns of behaviour in managers which are expressed in job cuts. The empirical results can be summarised as follows: firstly no significant connection can be proven between organisational changes and staff cuts in a firm. Secondly both outsourcing and integration decisions taken by the firms result in job cuts. Thirdly public limited companies in western Germany and in Germany as a whole carry out clear staff reductions. This result can be explained firstly by the fact that the management orientates itself towards the concept of shareholder value. Secondly a manager behaviour pattern based on reputation effects can play a role here." (Author's abstract, IAB-Doku) ((en))

Cite article

Beckmann, M. (2000): Unternehmenspolitik, Managerkontrolle und Personalabbau in Deutschland. Theoretische Ansätze und empirische Analyse mit Daten des IAB-Betriebspanels. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 33, No. 4, p. 594-608.