The Determinants of Employee-Involvement Schemes: Private Sector Australian Evidence

Abstract

Using data from the 1995 wave of the Australian Workplace Industrial Relations Survey, this article estimates the determinants of four types of group employee-involvement (EI) schemes: autonomous groups, quality circles, joint consultative committees and task forces. The results indicate that EI is associated with employees having longer expected tenure and higher labour force attachment. The authors argue that this is sensible as EI will be more successful in settings of interdependent production, settings in which such employees are at a premium. The results also show that complementary HRM practices, such as formal training and incentive pay, are associated with an increased likelihood of EI. Unionization, size of workplace and the extent of competition are also confirmed as determinants.