Increase in productivity through employee participation in partnership companies

Abstract

"This is a discussion of what effects on productivity, if any, can result from the practice of employee participation, and what hindrances stand in the way of this. Using a sample an empirical examination is carried out on how companies judge the instrument of employee participation, what differences in productivity there are between companies with profit sharing and those without, and the effect on the production results of employees' material participation combined with their immaterial participation. It appears that companies with profit sharing show on average higher productivity than non-participation companies, and that the latter work with a greater technological ineffficiency. In partnership companies, i.e. in companies where the employees have an increased right to a say in company decisions - one which goes beyond the legal regulations -, higher productivity can not generally be ascertained. There is however a greater difference in the effects depending on which type of participation is chosen. According to the results presented in this article, an increased right to a say in job organisation is to be judged as the most favourable. Ouality control groups also have a positive effect on productivity and result in additional advantages when in combination with profit sharing. Only slight positive effects or even counterproductive effects are obtained in cases of increased rights to a say in the areas of investment or personnel decisions or in wage arrangements." (Author's abstract, IAB-Doku) ((en))

Cite article

Hübler, O. (1995): Produktivitätssteigerung durch Mitarbeiterbeteiligung in Partnerschaftsunternehmen? In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 28, No. 2, p. 214-223.