Discussion Paper 15: The Business Case Against Verbal Abuse

16 Sep 2014

Incentive Structure, Verbal Abuse, Productivity and Profits in Garment Factories

This paper explores the business case against verbal abuse in developing country garment factories. Results from analysis of firm incentive structures confirm that supervisors do use verbal abuse as a supplementary motivational tool, but they also demonstrate that verbal abuse has detrimental implications for firm profits by negatively impacting worker productivity.


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