Improving Management Through Worker Evaluations: Evidence from Auto Manufacturing*

Using a randomized experiment with an automobile manufacturing firm in China, we measure the effects of letting workers evaluate their managers on worker and firm outcomes. In the treatment teams, workers evaluate their managers monthly. We find that providing feedback leads to significant reductions in worker turnover and increases in team-level productivity. In addition, workers report higher levels of happiness and well-being. The evidence suggests that these results are driven by learning by managers, leading to changes in their behavior and an overall better relationship between managers and workers.

Automated summary

Letting workers evaluate their managers leads to reduced turnover, increased productivity, higher levels of happiness and well-being. The positive effects are driven by managers learning and changing their behavior to create a better relationship with workers.