POSITIVE IMPACTS OF EMPLOYEE OWNERSHIP & REPRESENTATIVE PARTICIPATION
In response to intensified global and domestic competition, many worldwide companies have sought to improve company performance through more efficient use of their work forces. One of the prime ways of utilizing workforces efficiently is by involving employees in various business propositions and activities (Cooke, 1994). Employee involvement is defined as “a participative process to use the entire capacity of workers, designed to encourage employee commitment to organisational success” (Cotton, 1993). A major topic of debate in recent times is to what extend an efficient employee involvement programme helps an organisation to prosper and grow, rather than having an adverse effect on its performance. This essay focuses on the impact of two specific employee involvement programmes i.e. employee ownership and representative participation on an organisations performance by drawing data from several empirical studies.
Employee Ownership refers to workers becoming part owners of a company by being allocated shares in their respective firms in addition to their wages. Having a direct link between their effort and reward, employees are motivated into putting in greater effort as they have a larger interest in their employee’s profitability ( Bennett, 1997). A study of Polish Cooperatives was conducted in 1993 to derive the effect of employee ownership on a firm’s productivity. Information was gathered in a survey on three industries, clothing, printing and construction. The survey revealed that these industries were characterised by a fixed percentage of shares owned by employees. The productivity wa...
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...Empowerment for Business Results: A Study of Powergrid. Indian Journal of Industrial Relations. 39 (4), p517-532
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As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization.
Workers feeling, which includes competitive compensation and reward strategies, professional growth and development, career paths and succession plans and the organizations leadership and culture are contributing factors of employee engagement
employee stock ownership can create a burden of long-term planning for the sustainability and repurchase program; not all employees can be able to purchase stock. According to the case, Atul believes in a total compensation between 0-10 percent based on employee’s salaries could play as a “trade-off” for a “supportive and respective work environment” (Calo et al., n.d.).
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Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
Unions traditionally were “a continuous association of wage earners for the purpose of maintaining or improving the condition of their employment” (Webb & Webb, 1894, as cited in Bryson, 2011b, slide 7). Their function was to campaign for compassionate management procedures, equivalent bargaining power between employers and employees, and for fairness and democracy to be initiated into the workplace (Bryson, 2011a). Union activity at this time tended to focus on nationwide bargaining for industrial groups (Geare, 1983, as cited in Haynes, 2005), with their role seen as wage bargainers and in...
Some drawbacks are less employment security, a loss of pay due to the profit-sharing model, and there is evidence of some firms engaging in downsizing and layoffs who have adopted HPW. There is also evidence that implementation of HPW systems in lower-tier service jobs results in negligible differences in any of the above categories. Only in the upper-tier services can more of the benefits of this model be had, which unfortunately leads to potentially greater market segmentation (Krahn, Lowe, Hughes, 2011 p. 267-268). Works Cited Krahn, Lowe, Hughes (2008) Work, Industry, & Canadian Society. 5th ed.
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The workers are stakeholders for Cadburys because they have a big interest in the business, the reason for this is that they are the ones that produce the product they are making and without them there wouldn’t be a business. The workers want to earn high wages and keep their jobs in the business. The work environment has to be a good standard because if the work environment was poor then the staff wouldn’t be able to work at the best of the
...selid, M.A. 1995. ‘The impact of human resource management practices on turnover, productivity and corporate financial performance’, Academy of Management Journal, Vol 38, pp635-670.
In the past 20 years, the technology has been improving as well as the behavior of human. Another change that has been significant enough in the workforce is the generation. Since the baby boomers is reaching the retirement ages, the workforce changes its face. During the change of the pace there are many issues regarding the younger generation. Though, the unprepared new labor force brings another issues to the most company. As the new age begin, the company is struggling with the high demand of spending and low output level from the employees. This event challenges the human resource management on the search of potential employees. The consideration breed the pros and cons whether to keep, train and improve or recruit and change the force. The essay will provides the thorough exploration to oversee the positives of developing dedication of the employees. The method will be used are research and case discussion. The objective of the written report is to provide an insight of the importance of loyalty from the employees.
John W. Budd & Devasheesh Bhave (2006). Sage Handbook of Industrial and Employment Relations. Industrial Relations Center, University of Minnesota. Chapter 5.
Employee trust has a direct effect on the performance of a particular workplace. Depending on the attitudes of employee to the management, this effect can either be good, bad, or a mix of both. Management and employees tends to have conflict within organizations due to various issues, but mainly because of the questionable reliability of employees towards their manager. The success of a workforce is dependent on the financial performance, labor productivity, and product or service quality which is controlled by the employee, but when employees start slowing down their performance to protest with the management, then something is wrong on how things are handled by the owners. According to Brown, McHardy, and Taylor, co-authors of an economic article that pertains to UK workers, employees’ trust are subjective on the four qualities, often called as trust measures, that an effective manager must possess: (1) managers are relied to keep their promises; (2) managers treat employees fairly; (3) managers deal with employees honestly, and; (4) managers are sincere in attempting to understand employees’ views. Their research shows that when employees are assured that the managers meet the four conditions above, the financial performance, labor productivity, and product or service quality are “a lot better than average”. Employees work performance are increased and trust is also strengthen between employees and employer.
Employee empowerment can be described as giving employees' accountability and ability to make choices about their work without managerial authorization. Good managers are expected to assist employees to improve job success by supporting, training, leading and giving advice. Employee empowerment can increase employees' motivation, job satisfaction, and loyalty to their companies. The power that managers comprise should now be shared with employees with confidence, assertion, inspiration, and support. Work decisions and the ability to control an individual’s amount of work are now being relied upon at lower-level management positions (Fragoso, 1999). Groups of empowered employees with little or no supervision are now being formed and these groups are being called self-managed teams. These groups can now solve work problems, make choices on schedules and operations, learn to do other employees’ jobs, and are held accountable for the quality of their finished products.
Diversity makes a great performance in the organizations through valuing and using all talents of the employees of various groups. Nadeem Iqbal et al, (2013). Organizational performance and employee’s involvement have relationship with each other. There are three components to measured employees involvement and organizational performance like job empowerment, team orientation and capacity development. Its effect positively on organizational performance trough measured delegation of authority, team performance, employee’s skills and knowledge. All aspect compare with those organizations which never focus on these components.