scholarly journals Worker Participation in Decision‐making, Worker Sorting, and Firm Performance

Author(s):  
Steffen Mueller ◽  
Georg Neuschaeffer
2016 ◽  
Vol 9 (7) ◽  
pp. 64 ◽  
Author(s):  
Abdulrahman Alsughayir

<p>The objective of this study is to examine the influence of employee participation in decision-making on firm performance in Saudi Arabia’s manufacturing sector. Data were collected through pre-validated, piloted questionnaires, which were e-mailed to 341 manufacturing firms. The questionnaires asked about employee involvement in decision-making and performance variables. The response rate was 63.4 percent. Dimensions of PDM were rendered into 20 statements in the form of a five-point Likert scale. The scale, ranging from no involvement to substantial involvement, measured the degree of PDM. Additionally we used a five-point Likert scale to determine the extent of the firms’ performance in terms of the 10 criteria. The scores of the 10 items were summed and averaged to establish the mean index of the firms’ performance. An index of less than 4.0 was regarded as low firm performance; an index of 4.0 and above was considered to represent high firm performance. Statistical tools were used in analysis. Through product–moment correlation, we examined whether a relationship existed between employee participation in decision-making and firm performance. Regression analysis provided the extent of variation in the dependent variable and Z-test (approximated by the independent samples t-test). Findings showed a significant positive relationship exists between PDM and firm performance, suggesting that PDM is an essential component influencing firm performance. The higher the level of employee participation in decision-making, the higher the level of firm performance.Future studies involving the service industry would shed light on PDM in industries besides manufacturing.</p>


2008 ◽  
Vol 39 (2) ◽  
pp. 45-51
Author(s):  
R. Van Der Walt

The Labour Relations Act No. 66 of 1995 introduced workplace forums (WPFs) as a structure to promote employee participation in decision-making in the workplace. The study gathered the perceptions of management representatives regarding the reason(s) for the establishment, the process of establishment as well as the functioning of workplace forums in their respective organisations. The results indicate that contrary to popular belief management representatives understand that greater employee participation is the reason for the establishment of a workplace forum and that the establishment and functioning of workplace forums take place in accordance with the prescriptions of the Act. It is recommended that management create a climate in which more workplace forums can be established.


ILR Review ◽  
1995 ◽  
Vol 49 (1) ◽  
pp. 58-77 ◽  
Author(s):  
Chris Doucouliagos

Using meta-analytic techniques, the author synthesizes the results of 43 published studies to investigate the effects on productivity of various forms of worker participation: worker participation in decision making; mandated codetermination; profit sharing; worker ownership (employee stock ownership or individual worker ownership of the firm's assets); and collective ownership of assets (workers' collective ownership of reserves over which they have no individual claim). He finds that codetermination laws are negatively associated with productivity, but profit sharing, worker ownership, and worker participation in decision making are all positively associated with productivity. All the observed correlations are stronger among labor-managed firms (firms owned and controlled by workers) than among participatory capitalist firms (firms adopting one or more participation schemes involving employees, such as ESOPs or quality circles).


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