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Who Gains? A Case Analysis of Employee Ownership and Managerial Prerogatives

Graham K. Kenny (Department of Organisational Analysis, University of Alberta)

International Journal of Manpower

ISSN: 0143-7720

Article publication date: 1 April 1984

397

Abstract

As any organisation chart illustrates, two essential features of organisations are formal authority and division of labour. “Formal authority” specifies those individuals and positions which have institutionalised power over others, while “division of labour” specifies those individuals and positions who are responsible for certain tasks in an organisation. In these respects organisations are a reflection of their environmental contexts of which class is a major feature (Clegg and Dunkerley, 1980). Broadly speaking what emerges in organisations are two classes of participants. One such class is represented by those who own the means of production (or capital) while the other such class is represented by those who own labour. This difference in capital ownership leads to disparities in the rights, powers and privileges—prerogatives—of the two classes (Clegg and Dunkerley, 1980). In practice, however, the capitalists are represented in organisations by “the management” who act as their agents. Thus the active participants in organisations become “management” and “labour” (Strauss and Rosenstein, 1970). Management with its power base grounded in its role as the owner's agent becomes the “elite” in the organisation.

Citation

Kenny, G.K. (1984), "Who Gains? A Case Analysis of Employee Ownership and Managerial Prerogatives", International Journal of Manpower, Vol. 5 No. 4, pp. 11-18. https://doi.org/10.1108/eb044984

Publisher

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MCB UP Ltd

Copyright © 1984, MCB UP Limited

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