DescriptionIn pursuit of an organization level comprehensive theoretical framework for participative work structures, this study identifies how organization-based incentives and employee involvement affect a collective attitude and behavior of employees in order to ultimately improve labor productivity. From realistic group conflict theory, organizational social cohesion is derived as a proximal collective attitudinal outcome of the participative practices. Drawing on research and evidence, reduced voluntary turnover is derived as a collective behavioral outcome of organizational social cohesion. Finally, labor productivity is regarded as a distal organizational outcome which may be determined by the indirect effects of the participative practices through the collective attitudinal and behavioral outcomes. Using a multi-source and partially lagged U.S. large company dataset, it is indicated that both participative practices are positively related to organizational social cohesion and negatively influence collective voluntary turnover through organizational social cohesion. It is further demonstrated that organization-based incentives improve labor productivity through reduced voluntary turnover whereas employee involvement increases it through both enhanced social cohesion and decreased voluntary turnover. This study’s theoretical claim and empirical knowledge are envisaged to contribute to our systematic understanding about how and why participative practices leverage greater organizational productivity from employees.