An Instrumental Variable Approach to the Organizational Determinants of Employee Well-Being

March 28, 2012
5.30 PM

• Ermanno Tortia, University of Trento

Abstract:
This paper test the relation between workers non material satisfaction and organizational processes using survey data that encompass 4,134 salaried workers in 320 Italian social enterprises (specifically, cooperatives with social aims). A latent regression analysis with factor-wise score regression is implemented. Factorwise scoring is used to accomplish logit, OLS, and instrumental variable analysis. Results support the view that immaterial satisfaction associated with diverse organizational processes generates different levels of satisfaction. In particular, elements defining the degree of involvement, the quality of relationships with managers and fairness of procedures emerge as preconditions for individuals to be satisfied in strategic decisional contexts and to fulfill their personal job aspirations. Teamwork boosts instead the practical use of creativity in work-settings. Instrumental variable analysis does not contradict the existence of a causal relation between organizational processes and creativity.