Management Practices Survey: Pilot development and initial results Harriet Robinson,
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The document summarizes the results of a pilot survey on management practices conducted with UK manufacturing businesses. The pilot found that (1) most businesses were willing to participate in the voluntary survey, (2) there was variation in management practice scores within industries and business types, and (3) higher management scores were correlated with higher productivity, especially in chemicals/pharma and textiles. Next steps include expanding the survey to the services sector with a larger sample size to collect more comprehensive data on management practices across industries.
Management Practices Survey: Pilot development and initial results Harriet Robinson,
- 1. Management Practices Survey: Pilot development and initial results Harriet Robinson, ONS Friday 14 October 2016 1
- 2. Overview • Motivation • Manufacturing Pilot Design • Manufacturing Results • Next steps - Services 2
- 3. Motivation 3
- 4. Current Price GDP per hour worked, G7 80 90 100 110 120 130 140 Japan Canada UK(=100) Italy G7 ex.UK France US Germany 2014 2015 4 Source: ONS
- 5. Management and Performance - USA Source: Bloom et al, 2013,“Management in America”, Center for Economic Studies Working Paper, US Census Bureau 5 Productivity Operating Profit Output Growth Decile of Management Practice Score Low High Low High Low High
- 7. Purpose of MPS pilot • Feasibility Are UK businesses willing to answer these questions in a voluntary survey? Can we find a long term approach for collecting data on management practices? • Results How much do responses vary? Do we see an association between management practices and productivity? 7
- 8. Survey Design - Sample • 1,026 businesses from the Annual Business Survey’s sample for 2015. • Coverage: • Great Britain • Reporting Units (businesses) with employment of at least 10, where employment is employees plus working proprietors • Manufacturing (SIC 2007 section C, divisions 10-33) • Stratified using employment and industry • Employment bands of 10-49, 50-99, 100-249 and 250+ • Industry at division level (two digit SIC code) • Final response rate of 68% (702 businesses)
- 9. Average score by business type 0.0 0.2 0.4 0.6 0.8 1.0 All manufacturing Not family-owned Family-owned Family-owned and managed Family-owned, not family-managed Domestic Multinationals UK Multinationals Non-UK Multinationals Management Score (2015) 9 All manufacturing includes all manufacturing businesses with employment of at least 10 in Great Britain Source: ONS
- 10. Average score by employment size band 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 All manufacturing Family owned Family owned and managed Family owned, not family managed Multinationals 10 to 49 employment 50 to 99 employment 100 to 249 employment 250+ employment Management Score (2015) 10 All manufacturing includes all manufacturing businesses with employment of at least 10 in Great Britain Source: ONS
- 11. Average score by quintile and size band 11 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1 2 3 4 5 All manufacturing 10-49 employment 50-99 employment 100-249 employment 250+ employment Management Score (2015) Quintile All manufacturing includes all manufacturing businesses with employment of at least 10 in Great Britain Source: ONS
- 12. Average score by quintile and type 12 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1 2 3 4 5 All manufacturing Multinationals Family owned Family owned and managed Family owned and non-family managed Management Score (2015) Quintile All manufacturing includes all manufacturing businesses with employment of at least 10 in Great Britain Source: ONS
- 13. Correlation between Score and Productivity by industry grouping £0 £10 £20 £30 £40 £50 0.40 0.45 0.50 0.55 0.60 0.65 0.70 Average management score, 2015 Textiles, wearing apparel & leather Output per hour, 2015, current prices Chemicals, Pharmaceuticals, rubber, plastics & non-metallic minerals 13 All manufacturing includes all manufacturing businesses with employment of at least 10 in Great Britain Source: ONS
- 14. Next Steps 14
- 15. Services Pilot - Aims • An expanded set of questions on management practices • Wide coverage of Services • Sample size of 15,000 respondents • Response rate of at least 50% • Data collected at Reporting Unit level, consistent with existing ONS business surveys • Survey despatch in February 2017, closing data collection in August 2017 15
- 16. • Any questions? • Contact details Harriet Robinson Office of the Chief Economic Adviser, ONS Email: harriet.robinson@ons.gov.uk Tel: 01633 45 6209 16