Employee participation in organizational decision making at the strategic management level is manifested in two main ways: first, employee representatives sitting alongside shareholder representatives on the boards of public companies and state-owned enterprises; and second, producer cooperatives in which the workers own the organization. Producer cooperatives are also likely to have extensive employee representation on their boards. However, the two forms of participation fundamentally differ. Employee representation on the boards of public companies and state-owned enterprises constitutes employee participation as employees, in common with the other forms of participation examined here. Producer cooperatives owned by the employees constitutes participation as owners. This article separately examines these two approaches to employee participation in organizational decision making at the strategic management level. It then analyses the incidence and effectiveness of each form of participation. The article concludes with general observations about the comparative viability and basis for each form.
|Title of host publication||The Oxford Handbook of Participation in Organizations|
|Editors||Paul J. Gollan, David Lewin, Adrian Wilkinson|
|Place of Publication||Oxford|
|Publisher||Oxford University Press|
|Number of pages||21|
|Publication status||Published - 2 May 2010|