Quality management and high performance work practices: do they coexist?

Article Abstract:

In this study we analyse the impact of quality management practices on human resource management. Although in the theoretical literature this relationship is supposed to hold, there is a shortage of empirical research about this belief. To this end we have used a sample of almost 1000 Spanish manufacturing plants. In order to test our hypotheses we have estimated several ordered probit models. Our results indicate that the implementation of quality assurance systems and the use of different instruments to improve quality facilitate the introduction of high performance work practices, both in the area concerning work organisation and that which concerns employment relations management. Keywords: Quality management; High performance work practices; Manufacturing; Survey; Functional integration

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Productivity, returns to scale and the elasticity of factor substitution in the USA apparel industry

Article Abstract:

In light of the growing trade deficit and unemployment in the US apparel industry, we estimate the industry's productivity and efficiency for the period 1976-93 utilizing a variable elasticity of factor substitution production function. The results indicate industry adjustment by increasing labor productivity and maintaining fairly stable profits despite job losses. Performance, thus far, does not justify additional protectionist trade policy. However, due to evidence of rapidly decreasing capital productivity, substantial technological improvements will be necessary. With an elasticity of factor substitution less than one and decreasing, an increase in factor prices could result in higher apparel prices and preference for cheaper imports. Competition in the industry could be intensified by recent rules of the WTO to liberalize trade in apparel. Keywords: Factor productivity; Returns to scale; Technological change

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