Analyzing the impact of management practices on firm efficiency
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A regression analysis was conducted to identify the independent variables that influence the management practices on UK manufacturing firm efficiency. The regression model was specified accounting the eight variables: 1) if incentive compensation is offered, 2) if a company provides training to employees, 3) if flexible job assignment occur, 4) if firm employees more than 50 workers, 5) manager age, 6) manager experience in managerial positions, 7) manager education and 8) if a firm is family-owned. The regression study performed to quantify these variables shows that the two most influential aspects in controlling a UK manufacturing firm's efficiency are delayed flexible job assignment and increased firm employees by more than 50 workers. Methodology used was OLS estimation procedure as well as Tobit regression. Manager experience in managerial positions and manager age variables are the strongest positively variables. At the same time, the strongest negatively variables pair are between flexible job assignment and manager age. Flexible job assignment and family-owned variables increase, tend to decrease all the other examine variables, or in the best case to be without any significance to any of the other variables. By contrast, there are two variables correlated with the majority of other variables with positive value. Those are the incentive compensation is offered and the company provides training to employees.