Assessing the Effects of Industrial Relations Systems and Efforts to Improve the Quality of Working Life on Organizational Effectiveness

Abstract

This study assesses the relationships among characteristics of industrial relations systems, efforts to improve the quality of working life, and selected measures of organizational effectiveness in 25 manufacturing plants belonging to one company. On the basis of both research from organizational behavior and industrial relations, the paper offers the proposition that industrial relations systems affect organizational effectiveness through two channels. The empirical results show (1) strong evidence of an association between measures of the performance of industrial relations systems and economic performance, and (2) evidence that efforts to improve quality of working life have little impact on economic performance.