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11 – 20 of over 15000Recent policies designed to promote profit sharingin Great Britain are surveyed. Evidence on theextent of profit sharing in Britain is presented,and the economic impact of such…
Abstract
Recent policies designed to promote profit sharing in Great Britain are surveyed. Evidence on the extent of profit sharing in Britain is presented, and the economic impact of such schemes is assessed. It is found that there is little strong evidence to support the notion that profit sharing significantly improves either employment, profitability, productivity, investment or remuneration.
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Erik Poutsma and Paul E. M. Ligthart
This chapter investigates the differences in share-plan participation among various employee groups and why these differences exist. For strategic and tactical reasons, inequality…
Abstract
This chapter investigates the differences in share-plan participation among various employee groups and why these differences exist. For strategic and tactical reasons, inequality may result from an employer’s choice to distinguish among groups when allocating or offering shares. Differences among groups are also based on employee preferences. In addition, differences may be caused by social stratification, which limits access to plans for certain groups. Using these three perspectives, this study found important demographic differences in participation and received benefits. The study revealed that employers tend to focus on high-level personnel. It also found that employees may differ in how knowledgeable they are regarding share plans and how they value the usefulness of participating in share schemes.
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Erik Poutsma and Paul E. M. Ligthart
This chapter analyzes the determinants of adoption of sharing arrangements by companies. Using propositions from agency and strategic human resource management frameworks…
Abstract
This chapter analyzes the determinants of adoption of sharing arrangements by companies. Using propositions from agency and strategic human resource management frameworks predicting the adoption of sharing arrangements, we test the relationships with a large international dataset. The study finds that adoption of sharing arrangements is related to human capital investments, individual incentives, involvement practices, and human resource management practices and that adoption is affected by country differences.
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Mike Peel, Maurice Pendlebury and Roger Groves
In an earlier paper in this journal (Peel, Groves and Pendlebury, 1990), we outlined a major research project, being conducted at the Cardiff Business School, into the impact of…
Abstract
In an earlier paper in this journal (Peel, Groves and Pendlebury, 1990), we outlined a major research project, being conducted at the Cardiff Business School, into the impact of privatisation/share‐ownership on the ‘financial awareness’ of employees.
David Morris, Ismail Bakan and Geoff Wood
The bulk of research on approved profit sharing and SAYE schemes tends to focus on the effects of their presence/absence, which says little about how effectively such initiatives…
Abstract
Purpose
The bulk of research on approved profit sharing and SAYE schemes tends to focus on the effects of their presence/absence, which says little about how effectively such initiatives are implemented, particularly with regard to different categories of employee. This paper seeks to contribute towards filling that gap through comparing responses between different categories of employee, and the relative effects of differing forms of financial participation.
Design/methodology/approach
The paper shows that the population for the study consisted of employees in a large (153,000 employees) retail organisation in the UK. A stratified proportionate random sampling procedure was adopted to include employees at the managerial/non‐managerial levels and in shareholder/non‐shareholder groups. A total of 1,000 questionnaires were mailed to a broad spectrum of employees and a total of 430 usable returns were received. The survey results were analysed using regression analysis.
Findings
The paper found that more junior employees are less likely to choose to actively buy into profit sharing and share ownership schemes; among workers in the lower job bands, the rewards accruing from participation in such schemes are likely to be the least, yet it is there that the effects of any undermining of collective solidarities are likely to be particularly pronounced.
Research limitations/implications
The paper shows, while based on the case of a single large enterprise, this case study highlights something of the contradictions and limitations of flexible reward systems.
Originality/value
The paper highlights the divergent effects of individualized forms of participation. On the one hand, financial participation lengthens the reward cycle; employees will be encouraged to remain with the firm, to maximise their shareholdings. On the other hand, a greater individualisation of reward systems will undermine notions of collective solidarity; workers will have different agendas according to individual choices made regarding the scale of participation in such schemes. This central contradiction will be particularly pronounced among workers in the lower job bands, where the rewards accruing from participation in such schemes is likely to be the least, yet it is there that the effects of any undermining of collective solidarities is likely to be particularly pronounced.
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Harvie Ramsay, John W. Leopold and Jeff Hyman
I point out also that there are 1,800,000 more owner‐occupiers since 1979 — a policy fought tooth and nail by the Labour Party; that there has been a dramatic extension of share…
Abstract
I point out also that there are 1,800,000 more owner‐occupiers since 1979 — a policy fought tooth and nail by the Labour Party; that there has been a dramatic extension of share ownership as with British Telecom and an increase in the number of employee share option schemes.
Niels Mygind and Thomas Poulsen
The purpose of this paper is to give an updated overview of the research on employee ownership. What does the scientific literature reveal about advantages and disadvantages? What…
Abstract
Purpose
The purpose of this paper is to give an updated overview of the research on employee ownership. What does the scientific literature reveal about advantages and disadvantages? What can be learned from different models used in Italy, France, Mondragon (Spain), UK and US with many employee-owned firms in contrast to Denmark.
Design/methodology/approach
A structured review of the literature on employee. The paper identifies different mechanisms leading to effects on productivity, job stability, distribution, investment etc., and reviews the empirical evidence. The main barriers and drivers are identified and different models for employee ownership in Italy, France, Mondragon (Spain), UK and US are reviewed to identify potential models for a country like Denmark with few employee-owned firms.
Findings
The article gives an overview over the theoretical predictions and the main empirical evidence of the effects of employee ownership. The pros are greater employee identification with the firm and increased productivity reinforced by increased participation. Employee-owned firms have more equal distribution of wages and more stable employment, and they have greater mutual control between employees and fewer middle managers. The motivation effects may be smaller for large firms and lack of capital may lead to lower levels of investments and capital per employee.
Originality/value
Comprehensive and updated literature review on the effects and successful formats of employee ownership to identify models for implementation in countries with few employee-owned firms.
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Christine Whitehead and Sarah Monk
The purpose of this paper is to explore the role of affordable home ownership in the light of the recent global financial crisis.
Abstract
Purpose
The purpose of this paper is to explore the role of affordable home ownership in the light of the recent global financial crisis.
Design/methodology/approach
The paper draws on recent research conducted by the authors and others which included analysis of secondary data and policy documents and interviews with key stakeholders including housing associations and developers. The theoretical scope of the paper is outlined in the first section which looks at the principles behind the two main approaches to providing affordable home ownership: shared equity and shared ownership. Given continuing aspirations on the part of most households in England to become home owners, the key comparison is with the attributes of full ownership.
Findings
The paper finds that the main products share many of the attributes of full home ownership while remaining more affordable. The economic situation post‐2007 made both shared ownership and shared equity more difficult. The crisis and its aftermath also suggest that there is a need to develop a more robust and longer term market in equity sharing. This could be of real significance into the longer term, especially if the availability of mortgage finance remains constrained for many years to come. The paper concludes that in the longer term, developing a range of partial tenures which provide most of the benefits of owner‐occupation but which reduce risks to individual households and improve affordability in the early years is a desirable strategy.
Practical implications
There are clear implications for policy makers in other countries, notably the benefits from developing an intermediate tenure market which includes institutional equity and risk taking rather than continued large‐scale reliance on debt finance.
Originality/value
Given stated governmental ambitions to meet housing aspirations, this paper clarifies how it is possible to meet an identified need for affordable home ownership products to fill the growing “gap” between first‐time buyers who can purchase with parental help and those who have no means of achieving home ownership, even though they have the income to support such a choice.
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Examines the implementation of profit sharing and employee ownership schemes, uses some case examples to show how the popularity of these concepts has grown over the years…
Abstract
Examines the implementation of profit sharing and employee ownership schemes, uses some case examples to show how the popularity of these concepts has grown over the years. Presents the results of recent research on top management views of such schemes, which show a high percentage of managers in favour of them in order to encourage employee involvement and commitment. Looks at the gains and benefits that may follow as a result of these schemes, but also warns that there may be problems too if the schemes are not properly thought out.
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A conference on this theme was organised at the Cardiff Business School, 14–15th September, 1988 and a selection of abstracts of papers presented has been compiled.