By Dr Andrew Pendleton
This quantity is an exam of the origins, features and function of employee-owned agencies. It makes a speciality of agencies that experience switched over to both partial or complete worker possession utilizing fresh institutional, monetary and felony suggestions. according to 5 years of empirical examine, it is a topical contribution to fresh debates at the hard nature of employment.
Read Online or Download Employee Ownership, Participation and Governance: A Study of ESOPs in the UK (Routledge Research in Employment Relations) PDF
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Additional info for Employee Ownership, Participation and Governance: A Study of ESOPs in the UK (Routledge Research in Employment Relations)
Poole advocates a third approach, which combines elements of both the evolutionary and cyclical perspectives. Called the ‘favourable conjunctures thesis’, he suggests that organisational democracy advances in an uneven pattern and depends greatly on variations in circumstances. He emphasises managerial choices and values, in conjunction with the power and strategies of other groups in the firm, as critical influences on the development of economic democracy. 20 The development of employee ownership In this book we incline towards the ‘favourable conjunctures’ approach, for reasons to be outlined shortly.
It is increasingly common for employers to provide ‘matching’ shares, the cost of which can be offset against corporation tax. This is a way of increasing participation in 401(k) plans, especially amongst lower-income earners, and thereby avoiding violations of the anti-discrimination rules governing 401(k) plans (National Center for Employee Ownership 1998). ESOPs can be used to provide the ‘matching shares’. Meanwhile 423 plans are stock purchase plans which allow employees to buy shares at a discount and with favourable tax treatment.
Employees, as owners, not only have complete control of the direction of the business, they also typically expect close involvement in the management process, especially where self-management and personal development are important ideals in the firm. It is argued that this inhibits the emergence or appointment of a cadre of professional and expert managers (or conversely that where such a group does emerge the ideals of the co-operative have been lost (see Meister 1984)). These shortcomings of the labour-managed firm have been recurrently expressed within the Economics literature.