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The Fit of Employee Ownership with Other Human Resource Management Practices: Theoretical and Empirical Suggestions Regarding the Existence of an Ownership High-Performance Work System

Author

Listed:
  • Eric C.A. Kaarsemaker

    (University of York)

  • Erik Poutsma

    (Radboud University Nijmegen)

Abstract

This article embeds employee ownership within a strategic human resource management (SHRM) framework, and in so doing, aims to redress in part a lack of attention in previous employee ownership and SHRM literatures. The study extends the configurational approach to SHRM to include the construct of the workforce philosophy as the factor that determines the coherence of HRM systems. Companies that have employee ownership as a central element and core HRM practice should do two things in order to ensure that their HRM system is coherent and potentially a high-performance work system (HPWS). First, these firms should propagate the idea that employees deserve to be co-owners and take employees seriously as such. Second, the HRM system should reflect this workforce philosophy: the HRM system should contain HRM practices that mirror the rights that make up the very construct of ‘ownership’. The core HRM practices of the ‘ownership-HPWS’, in addition to employee ownership, are: participation in decision-making, profit sharing, information sharing, training for business literacy and mediation.

Suggested Citation

  • Eric C.A. Kaarsemaker & Erik Poutsma, 2006. "The Fit of Employee Ownership with Other Human Resource Management Practices: Theoretical and Empirical Suggestions Regarding the Existence of an Ownership High-Performance Work System," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 27(4), pages 669-685, November.
    • Handle: RePEc:sae:ecoind:v:27:y:2006:i:4:p:669-685
    DOI: 10.1177/0143831X06069009
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    References listed on IDEAS

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    1. Douglas Kruse & Richard Freeman & Joseph Blasi & Robert Buchele & Adria Scharf & Loren Rodgers & Chris Mackin, 2004. "Motivating Employee-Owners In Esop Firms: Human Resource Policies And Company Performance," Advances in the Economic Analysis of Participatory & Labor-Managed Firms, in: Employee Participation, Firm Performance and Survival, pages 101-127, Emerald Group Publishing Limited.
    2. Jones, D.C. & Svejnar, J., 1984. "Participation, profit sharing, worker ownership and efficieny in Italian producer cooperatives," LIDAM Discussion Papers CORE 1984019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Fiona J Edgar & Jing A Zhang & Alan J Geare, 2021. "Situation, personality and performance: An exploration of moderators and mediators," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(3), pages 426-449, August.
    2. Krista Jaakson & Epp Kallaste, 2016. "Who uses employee financial participation in an adverse environment? The case of Estonia," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 37(3), pages 449-467, August.
    3. Juliette Summers & Shiona Chillas, 2021. "Working in employee-owned companies: The role of economic democracy skills," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(4), pages 1029-1051, November.

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