The effect of organisational differences in ownership, control and structure on employee perceptions of participation and empowerment : an analysis of these phenomena in relation to the operational costs of two labour intensive South African companies.
Loading...
Date
2007
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This study investigates the relationships between ownership, control, organisational
structure and company operational costs. The workers’ perceptions of participation
(financial and decision-making) and empowerment are measured between two labour
intensive factories with different ownership structures.
The first factory (Kopano) has a workforce that shares equity ownership, or holds
proprietary title. It is significant to note that the Kopano workers share in the ownership
of the manufacturing section only, and not the upstream activities (mining, etc.), nor the
downstream activities (despatch, selling, marketing, etc.). Accordingly, the Kopano
owner-workers concentrate on manufacturing only.
Employees at the second factory (Lawley) have no equity stake; they do not hold
proprietary title and are “normal” salaried employees.
The hypotheses seek to identify differences between the two factories, relative to the
worker’s sense of participation (financial and decision-making) and empowerment. The
rationale is that the workers who hold proprietary title (Kopano) should have a greater
sense of financial participation, decision-making participation and empowerment than the
workers (Lawley) who do not hold proprietary title. This is tested via questionnaires at
both factories and the results obtained strongly support the hypotheses.
Given the abovementioned findings, the study then seeks to establish that there will be
greater savings in operational costs at Kopano factory (where the workers hold equity
title) compared to Lawley (where the workers are not involved in ownership
participation). The rationale behind this hypothesis is that operational costs at Kopano
should be lower than the operational costs at Lawley (because of the different ownership
positions). An analysis of operational costs between factories supports this argument.
The study finally seeks to establish a strong balance of probability that the results
obtained are because of the different ownership structures. This is confirmed using
Mill’s Method of Difference. However, identified weaknesses with this analytical tool
suggest that conclusive declaration to this end be the subject of future research.
Thesis (Ph.D.)-University of KwaZulu-Natal, 2007.
Thesis (Ph.D.)-University of KwaZulu-Natal, 2007.
Description
Keywords
Management--Employee participation., Employee motivation., Organizational effectiveness.