do employees / beneficiaries and management understand the concept of co-ownership (employee...
TRANSCRIPT
Do employees / beneficiaries and management understand the concept of co-ownership
(Employee Ownership)?
Presented byLoren Rodgers
National Center for Employee Ownership (USA)
Four Questions
1. What does co-ownership mean legally?
2. What does it mean in a business?
3. How much understanding is sufficient?
4. What aspects are most important to understand?
Four Questions
1. What does co-ownership mean legally?
2. What does it mean in a business?
3. How much understanding is sufficient?
4. What aspects are most important to understand?
A Bundle of Rights
• Financial• Access to information• Degree of control
It’s not just about legal issues
“When they say we're employee-owned, all they mean is that employees have stock.”
“I'm not sure I want to be an owner.”
Four Questions
1. What does co-ownership mean legally?
2. What does it mean in a business?
3. How much understanding is sufficient?
4. What aspects are most important to understand?
Lens 1: Psychology
Rudmin and Berry, 1987, “Semantics of Ownership,” Psychological Record, Vol. 36 pp.257-268.
Psychology
•Means-of-Acquisition
•Control
•Attachment
In practice
•Understand the Transaction
•Participationin Decisions
•Access to Information
There is no ownership without
rights.
There is no ownership without
responsibilities.
Lens 2: Reciprocity
Lens 3: U.S. Experience
Six Necessary Steps
1. Creating a Plan
2. Understanding the Plan
3. Business Literacy
4. Information Sharing
5. Incentive Plans
6. Employee Involvement
Lens 4: The Basics
1. Perceived trust
2. Perceived fairness
3. Managing expectations
Four Questions
1. What does co-ownership mean legally?
2. What does it mean in a business?
3. How much understanding is sufficient?
4. What aspects are most important to understand?
Enthusiasm About Employee Ownership
Effective Range
Skeptics 11% to 36%
Champions 6% to 32%
Four Questions
1. What does co-ownership mean legally?
2. What does it mean in a business?
3. How much understanding is sufficient?
4. What aspects are most important to understand?
What gets too much emphasis?
•The specifics of the plan. Understanding the plan is a path to trust; trust is what matters.
What gets too little emphasis?
•Business literacy
•Employees’ impact on value
•Link between rights and responsibilities.
Questions?
Loren RodgersNational Center for Employee Ownership
1736 Franklin Street, 8th FloorOakland, CA 94612