Purpose The purpose of this paper is to examine the likely impact of AI robotics technology on the labor market through the lens of comparative advantage. Design/methodology/approach The first section reviews the recent success of AI in outperforming humans in cognitive intense activities such as Go, poker and other strategic games, which portends a shift … Read More
The aim of this paper is to compute and describe the conditions of an optimal employee ownership contract between an employer and an ambiguity‐averse employee. We then introduce ambiguity aversion in the baseline model of Aubert et al. (2014) using the multiple prior preferences of Gilboa and Schmeidler (1989) and its extension proposed by Maccheroni … Read More
Work practices and modes of pay have changed in recent decades. The combination of an increasingly educated work force, new information and communication technologies, the influx of AI and big data into business practices from production and sales to human resources, the increased importance of teamwork and the growth of non-standard work arrangements which blur … Read More
In 2009, United Steelworkers (USW) and Mondragon signed an agreement to promote union co-ops: firms that combine democratic worker ownership and union membership. Eleven U.S. initiatives now seek to implement the USW-Mondragon union co-op model, prompting a debate about whether unions and worker cooperatives are stronger together. This article draws on a case study of … Read More
We use an experiment to evaluate the effects of participatory management on firm performance. Participants are randomly assigned roles as managers or workers in firms that generate output via real effort. To identify the causal effect of participation on effort, workers are exogenously assigned to one of the two treatments: one in which the manager … Read More
I examine how different distributions of ownership and governance rights in firms affect the optimal organization of cross-functional project teams for knowledge-intensive work. I analyze multi-method data from two competing automated manufacturing equipment engineering firms with contrasting formal power structures, one a worker cooperative with ownership and governance rights distributed across occupations and the other … Read More
This special section of The Sociological Quarterly, edited by Joyce Rothschild includes the following articles: The Logic of a Co-Operative Economy and Democracy 2.0: Recovering the Possibilities for Autonomy, Creativity, Solidarity and Common Purpose by Joyce Rothschild When Freedom is Not an Endless Meeting: A New Look at Efficiency in Consensus-Based Decision-Making by Darcy K. Leach “Plan … Read More
This article analyses the linkages among group incentive methods of compensation (broad‐based employee ownership, profit sharing and stock options), labour practices, worker assessments of workplace culture, turnover and firm performance in firms that applied to the ‘100 Best Companies to Work For in America’ competition from 2005 to 2007. Although employers with good labour practices … Read More
Decades of feminist scholarship documents the persistence of gender inequality in work organizations. Yet few studies explicitly examine gender inequality in collectivist organizations like worker cooperatives. This article draws on the “theory of gendered organizations” to consider how gender operates in a worker-recovered cooperative in contemporary Argentina. Based on ethnographic and archival research in Hotel … Read More
Two major shifts in contemporary work organizations—“employee participation” and “diversity management”—have typically been studied in isolation from one another. Building on theoretical work by Acker (2006a,b), we ask how the interaction of these two constructs has affected the pursuit of workplace democracy at two worker cooperatives in Northern California. Using qualitative methods, we find that … Read More
Profit-sharing plans are one way to address the global issues of income inequality and uneven wealth distribution while increasing employee engagement. One company, the Chinese telecom Huawei, has a successful employee stock ownership plan (ESOP) that demonstrates such incentives can be good for both employees and the business.
William H. (Bill) Carris set a deliberate purposeful course for the whole system change that he deeply desired for his employees. The Carris transformation, innovative in its own right, provides examples of change from being traditionally owned, managed and governed to having shared ownership, participatory management and shared governance by the whole…
The academic literature emphasizes that shared capitalism positively affects employees’ attitudes at work. This paper investigates that issue by testing the relationship between shared capitalism and withdrawal behaviors (turnover and absenteeism). Recent literature interprets shared capitalism as a gift exchange between employers and employees. This paper builds on that literature. The analysis, based on an … Read More
Competitiveness today requires being able to operate at a global scale. The financial crisis invigorated this requirement, posing new challenges to the economic viability of conventional companies and demanding alternative organizational forms of production. Although a wealth of research has focused on capitalist companies, little attention has been paid to the way these challenges affected … Read More
Employee ownership is often used not only as a reward management tool but also as an entrenchment mechanism. The literature suggests that good managers use employee ownership as a reward management tool, whereas bad managers implement it for entrenchment, thus suggesting the existence of an equilibrium level of employee ownership. The contributions of this paper … Read More
While intuition suggests that empowering workers to have some say in the control of the firm is likely to have beneficial effects, empirical evidence of such effects is hard to come by because of numerous confounding factors in the naturally occurring data. We report evidence from a real‐effort experiment confirming that worker performance is sensitive … Read More
Equal Exchange is a cooperative organization that taps into the full capacities of everyone involved in a socially responsible way. This article describes how it has used the wisdom of its multiple stakeholders to create a collaborative community, to be profitable, and to have significant positive impact on people’s lives and the environment in approximately 20 countries.
This case study describes Huawei, a Chinese telecommunications equipment company, which heavily utilizes ESOP ownership, and applies Huawei’s results to describe ESOPs as a powerful tool for achieving corporate efficiency and growth.
We investigate which factors influence 44,649 employees’ decision to invest in a top retail banking group in France. We have two objectives: (i) to explore factors associated with the amount invested in the plan, and (ii) to explore whether these factors have same associations with the probability of investing more than the incentive pay i.e. … Read More
There are three reasons for promoting mutual building societies: they are less prone than banks to pursue risky speculative activity; a mixed system produces a more stable financial sector; and a stronger mutual sector enhances competition within the financial system.
We examine whether options granted to non-executive employees affect the performance of the firm by exploring the link between broad-based option plans, option portfolio implied incentives, and firm operating performance.
First, the authors developed a scale for psychological ownership with four components — self-efficacy, accountability, sense of belongingness, and self-identity. Second, they correlated it with transformational leadership, organizational citizenship behavior, organizational commitment, workplace deviance, intentions to stay, and job satisfaction. All the correlations were in the predicted direction. The authors concluded that integrating psychological ownership … Read More
This paper explores how share repurchases affect the extant employee compensation contracts and offer a new explanation for the popularity of stock buybacks.
This paper addresses the issue of how gainsharing programs work by proposing a model of gainsharing as an organizational learning system.
Through this article, we will demonstrate how the creation of private insurance coverage for ESOPs would help to eliminate, or at least reduce, the problem of the large downside risks associated with these quasi-retirement plans. In order to fully develop this assertion and the reasoning behind it, we will explore how ESOPs fit within ERISA. … Read More