"A long-standing question in social science is to what extent differences in management cause differences in firm … performance. To investigate this we ran a management field experiment on large Indian textile firms. We provided free consulting … on modern management practices to a randomly chosen set of treatment plants and compared their performance to the control …

firms with more structured management practices, have substantially higher pay, both on average and across every percentile … management, suggesting this performance-pay relationship arises from more aggressive monitoring and incentive practices for top …