Positive Impacts Of Employee Ownership And Representative Participaiton

1310 words - 6 pages

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 was calculated on the basis of the amount of production and the bonuses earned per employee. The results of the survey indicated a positive productivity effect found with respect to sharing in company profits and collective capital ownership by employees (Jones, 1993).

Another study conducted in 1992, compared the corporate performances of companies where employees owned more than 5% of the company’s stock and all other companies. Corporate Performance was measured on the basis of profitability which was calculated using various indexes like return on equity, price earnings ratio and profit margin. The survey conducted revealed higher levels of performance amongst employee owned firms. Such companies had 18% higher sales per employee and a 34% higher value added per employee (Blasi, Conte & Kruse, 1996).

Adding to the above two studies, were two more cases which supplemented the above conclusions. A study in 1981 discussed the relationship between employee equity in a company and company work attitudes. The survey conducted was a questionnaire sent to all employees of a particular firm, who had been distributed a certain number of shares of the...

Find Another Essay On Positive Impacts of Employee Ownership and Representative Participaiton

positive and negative impacts of migration on berlin

795 words - 3 pages (“Migration to Berlin”). Lots of people move there for a better quality of life and jobs. This essay seeks to evaluate the positive and negative impacts of migration in Berlin. This research will begin by evaluating the economic factors of Migration it will then proceed to investigate the education factors. In the process it will be highlighted that the impacts of migration are balanced. BODY ECONOMY Firstly, Berlin is one of the

The Positive and Negative Impacts of Migration in Mumbai

732 words - 3 pages IIntroduction: Mumbai is in India. It is the largest and most populous city in this country. A lot of people from different places move there for finding jobs, improve the conditions of life. This essay seeks to investigate the positive and negative impacts of migration in Mumbai. The essay will begin with consideration of city’s economy and finish with research of social inequality. Economy. The positive factor of migration is

Positive and Negative Impacts of Migration in Rio

745 words - 3 pages , on the other hand, people come here to make a living. There are positive and negative impacts of migration. Such as highland values, restricted sites for all types of development, high local taxes, pollution pull: cheap, available land, clean, quiet. BODY Rio has released the findings its 2010 census which state that 22.03 percent of the 6,323,037 residents of Rio de Janeiro live in favelas or substandard and irregular housing communities

Positive Impacts of E-books

1465 words - 6 pages , video and even audio comprised into an electronic file. For instance, a document typed in Microsoft Word is one of the examples of an ebook” (p.1) They are extant in different formats for example PDF, PDA and EXE-compiled HTML format. This type of on-screen documents increasingly used because of their vast vantages compared to conventional printed textbooks. This essay which entitled “The Positive Impacts of Ebooks” explicates several impacts

Impacts of government regulation, land ownership, and developer behaviour on urban brownfield residential development process

1805 words - 8 pages rising awareness of urban sustainability issues, presence of derelict/disused urban space and society’s rising demand for ‘urban lifestyle’ promotes brownfield development, the process to transfer from greenfield development to brownfield development can be very complicated. In this paper, I will be focusing on the impacts of government regulation, land ownership and developer behaviour on urban brownfield residential development process. In

The Positive and Negative Impacts Media

1296 words - 5 pages the world within a matter of nanoseconds. This information can be exchanged in the form of text, audio, visuals, etc. Expansion of media channels and its access to common people across the boundaries has influenced their lives. This impact of media on lives of the people can be regarded as positive and negative. The positive aspects of media on our lives are numerous. We can access information about any institution, government body, corporate or

The Positive Impacts of Video Gaming

938 words - 4 pages The positive impacts of video gaming online are listed on the online services section so these are some of the consequences that can happen to someone socially when playing too much. “Some of the physical consequences of video game addiction can lead to social consequences as well. For instance, an addicted gamer who loses sleep because he's playing so much simply doesn't have the energy to invest in relationships. Lack of sleep may also make

The Positive Life Long Impacts of Music

1275 words - 5 pages development of their basic skills and capacities. In addition, many students find music to be an enjoyable and relaxing class. Music education can influence learning in many different ways through an adolescent’s life. One way that music is a positive part of a child’s education, is that it can be linked with student achievements (Southgate). Research shows that the brain of a musician works in a different way than that of a non-musician

Ownership of Self and Property

1533 words - 6 pages Ownership has long affected our sense of self and worth. It has changed with the times but still affects us the same way as before. The famous philosopher, Plato, thought that “owning objects is detrimental to a person's character”. By examining the different types of ownership and evidence from historical to contemporary society, ownership correlates with one’s sense of self by either improving or diminishing it. . It is impossible for any

What are positive and negative impacts of social networking sites on social life?

1179 words - 5 pages Social Networking is one of the major part of people’s life. People spend much time to surf in internet, especially in social networking sites. Somebody spend many hours per day. However, not all of them know about impacts that affected on their health, education. Moreover, it influences how companies and small businesses advertise, to communication between friends. This essay is about benefits and drawbacks of social networks on social life

What Are the Positive and Negative Impacts of Migration in Sydney?

726 words - 3 pages Sydney is one of the biggest Australian cities. A Majority of people move there for good salary and better quality of life. The great economy and high salary involve people all over the world, especially from New Zealand, where citizens have not conditions like these. The major theme of this essay is positive and negative impacts of migration in Sydney. This research will begin by evaluating the economic factors of Migration it will then proceed

Similar Essays

Positive And Negative Impacts Of Advertising

676 words - 3 pages , increasing the consumption and as a result also increasing the demand of the product. There is a lot of blame that advertising causes negative social impacts on lives of citizens. Even if advertising has a large variety of positive impacts on society, it can be said that is has bad impact as well. Ads can play with the emotions of the general public and encourage them to think that buying and consuming are the ways of

Positive Impacts Of Technology Essay

1266 words - 5 pages technology. In conclusion, technology is like a coin which has its negative and positive impacts (Oak, 2012). However, it is much more beneficial than harmful. Technology helps people with work, education, transportation and much more. Technological advances do not keep people from being self-reliant and possibly be unable to handle the absenteeism of technology. Without GPS, people could still get to many destinations they want to get to and

Employee Share Ownership And Organisational Commitment

1006 words - 5 pages For the past few years, large companies around the world have adopted Employe Share Ownership Plans (ESOPs) as one of their reward systems. This employee ownership scheme is also known to have positive impacts to employees attitudes as many scholars found that ESOPs can help to align employees’ interest with those of shareholders, increase employees’ commitment and satisfaction, hence increasing their loyalty and reducing turnover rate (Klein

Positive And Negative Impacts Of Migration In Mexico City

716 words - 3 pages essay seeks to evaluate the positive and negative impacts of migration in Mexico City. Research begins by evaluating the economic factors of Migration it will then proceed to investigate the social factors. In the process it is highlighted that the impacts of migration are balanced. ECONOMY The first argument is that migrants have positive and negative impacts for economy of Mexico City. The city’s GDP is about 21.8% of the Gross Domestic