A range of studies have shown that performance is typically higher in organisations with employee share ownership (ESO) schemes in place. Many possible causal mechanisms…
A range of studies have shown that performance is typically higher in organisations with employee share ownership (ESO) schemes in place. Many possible causal mechanisms explaining this relationship have been suggested. These include a reduction in labour turnover, synergies with other forms of productivity-enhancing communication and participation schemes, and synergies with employer-provided training. The paper aims to discuss these issues.
This paper empirically assesses these potential linkages using data from the 2004 and 2011 British Workplace Employment Relations Surveys, and provides comparisons with earlier analyses conducted on the 1990 and 1998 versions of the survey.
Substantial differences are found between the 2004 and 2011 results: a positive relationship between ESO and workplace productivity and financial performance, observed in 2004, is no longer present in 2011. In both years, ESO is found to have no clear relationship with labour turnover, and there is no significant association between turnover and performance. There is, however, a positive moderating relationship with downward communication schemes in 2004 and in 2011 in the case of labour productivity. There is no corresponding relationship for upward involvement schemes.
The results are only partially supportive of extant theory and its various predictions, and the relationship between ESO and performance seems to have weakened over time.
The study further questions the rhetoric offered in support of wider ESO.
This paper examines the role and effectiveness of worker director schemes in six employee‐owned bus companies. This form of industrial democracy, which is aimed at giving…
This paper examines the role and effectiveness of worker director schemes in six employee‐owned bus companies. This form of industrial democracy, which is aimed at giving workers and their representatives a role in the strategic direction of the employing organization, has been in abeyance in recent years. However, it now seems to be making something of a comeback. Concern about corporate governance, the spread of employee ownership and recent initiatives by the EC have combined to generate renewed interest in employee representation in the formulation of company strategy. As industrial democracy edges back on to the industrial relations agenda it is opportune to reconsider the findings of earlier literature in the light of recent developments.
One of the most striking features of the period since 1979 in the UK has been the dismantling of the public sector. From small beginnings at the beginning of the 1980s…
One of the most striking features of the period since 1979 in the UK has been the dismantling of the public sector. From small beginnings at the beginning of the 1980s privatisation in its various forms has come to affect every area of state activity. Most prominent has been the sale of public corporations and utilities, such as British Telecom and British Gas. These initiatives had reduced employment in the state sector by well over one million by the end of the 1980s (see Beaumont, 1992:36– 37). Besides asset sales the other main form of privatisation (in terms of a direct transfer of activities from public to private sector) has been competitive tendering and private contracting in local government, the National Health Service, and parts of central government. Recently, the Government has suggested that ‘market testing’ of this sort will be extended to all public sector activities (see Citizens' Charter). In addition to these direct forms of privatisation residual parts of the public sector have been subject to what might be called ‘quasi‐privatisation’ in the form of agency status for much of central government and self‐governing trust status for NHS hospitals and services, characterised by contractual relationships in place of direct control via management hierarchies, and the weakening of democratic accountability via elected politicians (see Stewart and Walsh, 1992). Some observers have suggested that a fundamental transformation of the state is occurring with the state retreating from direct provision of services and activities (Lewis, 1993).
This paper uses a substantial international database to provide the widest and the most detailed analysis to date of financial participation across Europe. It explores the…
This paper uses a substantial international database to provide the widest and the most detailed analysis to date of financial participation across Europe. It explores the antecedents of broad-based share ownership and profit sharing schemes. It is found that country effects are important predictors of both profit sharing and share ownership schemes. Share ownership schemes are also associated with company size, stock market listing and some measures of HRM ‘sophistication’. Employee participation and representation have weak relationships with financial participation.