Fearing the Worst? Threat,Participation and Workplace Productivity

Abstract

This article investigates the impact of the threat of job loss and participation on productivity using data from the 1998 British Workplace Employee Relations Survey. Threat and participation have often been seen as alternative devices for motivation: the former based on coercion, the latter based on cooperation. The study examines whether there are any joint effects between the two. Specifically, does the impact of participation on workplace productivity vary according to the threat of job loss? The study finds little evidence of a direct effect of the threat of job loss on productivity, but strong support is found for the notion that worker participation can enhance productivity. This effect is found not to be affected by local unemployment but it is observed that the joint presence of participation and other ‘threat’ variables measuring the level of supervision do impact on productivity outcomes.