Policy-Makers and Many Employers Are Convinced That Employee Ownership Is Necessary to Obtain Commitment to Employees’ Work and to Their Organisations.

Topics: Management, Government, Organization Pages: 9 (3433 words) Published: February 27, 2013
Policy-makers and many employers are convinced that employee ownership is necessary to obtain commitment to employees’ work and to their organisations. Assess the evidence for this proposition and explain why you agree or disagree with it. In October 2011, anti-capitalism activists held a demonstration outside London’s St. Pauls Cathedral that caused a political debate regarding the future of big business. Marisa Cassoni, previous financial director at John Lewis Partnership, believes that organisations have become too focussed on one particular business model and that they should be more open to different types of models (Bartram, 2012). This has led to the increase in popularity of ‘Employee Ownership Plans’. This is a scheme that provides workers with an ownership interest within an organisation such as shares, which can be held until the employee retires or leaves the organisation. Despite not being a relatively new concept, it appears to have become more popular in recent times, as organisations attempt to separate themselves from competition. This essay aims to analyse and evaluate the evidence that suggests that policy-makers and many employers are convinced that employee ownership is necessary to obtain commitment to employees’ work and to their organisations. In order to achieve the overall objective of this essay, it will look at the Government’s position on the implementation of EOP’s within business’. Also, this essay will examine recent trends in employee ownership throughout Eastern Europe by using Ramsay’s (1977) Cycle of Control Thesis. It will also look at the possible reasons for implementing Employee Ownership Plans (EOP’s) and the implications that employee ownership can have on organisations. This essay will also discuss the success of organisations who have implemented EOP’s, for example the Mondragon Corporation and John Lewis Partnership. In addition, by analysing the effects on employees’ attitude towards their job, this essay will be able to determine whether there is a positive relationship between EOP’s and in increase in employee commitment. Through the use of academic sources, with reference to relevant findings from surveys and studies carried out by scholars, this essay will be able to further provide a sufficient conclusion on the topic discussed. It is important to look at why employers are so determined to obtain committed employees within organisations, and why they are willing to offer employee ownership as an incentive. This can be done by analysing Ramsay’s (1977) Cycle of Control Thesis. The cycle essentially meant that management was willing to compromise with workers in terms of participation, depending on high levels of labour intensity. Ramsay’s cycle challenges the view that employee ownership arose as part of work humanisation. He argues that it emerges when management authority is challenged by employees, and can be a cyclical process (Scott, 2006). Prior to Ramsay’s thesis, it was established that employee ownership initiatives had increased and decreased, fluctuating regularly as organisations were unable to commit to it as a business model. This coincides with Maslow’s hierarchy of needs. The relationship between employee self worth and the development of altitudinal change through employee ownership. In order to determine why policy-makers are convinced that employee ownership is necessary to obtain commitment to employees’ work and to their organisations, it is important to analyse recent trends in employee ownership and the affect of Ramsay’s cycle of control thesis on employee ownership as a business mdoel. Throughout Eastern Europe in particular, recent privatization has resulted in an increase of employee owned organisations. However, the impact of those employee owned firms has not had as significant an impact as was widely anticipated. This is due to employee owned business’ being recognised as more of an experiment, through fear of organisational collapse (Mygind,...
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