The Effects of Formal Employee Participation in Ownership and Decision Making on Perceived and Desired Patterns of Organizational Influence: A Longitudinal Study

Abstract

This paper examines possible effects of introduction of formal employee participation in ownership and decision making on patterns of organizational influence, using longitudinal data obtained before and after conversion of an electronics firm to partial employee ownership. Although numerous formal participation mechanisms were introduced, including employee board representation, an employee council, and quarterly shareholder meetings, little change was found in perceived worker participation at any decision level. Employee ownership did not seem to increase desires for worker influence among either managers or nonmanagers, nor did it appear to significantly affect the total amount and distribution of influence within the organization.