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Working Paper No. 2 - Employee performance and social links? What issues?

Working Paper No. 2 - Employee performance and social links? What issues?

02/05/11

Employee participation is a hot topic for companies looking for a new managerial model.

From a study on French data, the first of its kind, this paper highlights the conditions of effectiveness of the participative and their various combinations to improve business performance, analyzed here through the prism of performance social (measured by attendance problems (1)).

Several findings emerge . Savings plans (PEE) and employee share ownership positively influence employee behavior, while profit-sharing, used in isolation, does not produce significant effects. Moreover, some devices (including PEE) appear to enhance the effectiveness of other forms of participation, including social dialogue and employee participation in major decision-making bodies. However, such incentives "financial" are less severe than other forms of non-monetary incentives such as participation in decisions on the level of the organization of work (including increased employee autonomy). Despite the proliferation of new communications devices (including the instigation of ICT) to stimulate employee participation, direct social interactions and informal exchanges between workers and management are more effective to increase confidence in reporting relationships and, beyond, social performance. Finally, the combination of good practice that combines financial and non financial participation is particularly effective in terms of economic profitability and competitiveness.

The construction of a more fundamental link between the employee and his work (fulfillment, meaning at work) is therefore essential to mobilize employees and, beyond, to help resolve economic interest of the company and employees' interests.

The association for employee profit sharing must be part of a participatory culture, particularly through expanded research of effective combination of participatory and adapted to each company.

  • Key words : social performance; employee savings stock ownership; participative management and work organization; corporate governance and board; complementarity of the participative.
  • Authors : Salima Benhamou, Marc-Arthur Diaye

 

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