This article discusses why it is difficult to measure the effects of m
anagement practices on organizational performance. In spite of these d
ifficulties, a collage of evidence suggests that innovative workplace
practices can increase performance, primarily through the use of syste
ms of related practices that enhance worker participation, make work d
esign less rigid, and decentralize managerial tasks, A majority of U.S
. businesses have adopted some innovative work practices, However, onl
y a small percentage of businesses have adopted a full system of innov
ative practices, We outline several constraints on the diffusion of ne
w work practices, and suggest directions for future research.