Denis Collins believes that participatory management systems are
inevitable in democratic societies because they are ethically
superior to authoritarian management systems. Managers must begin
to share decision making and economic outcomes with their employees
if they want to obtain long-term efficiency and effectiveness in a
competitive business environment. Changes in power relationships
are bound to occur in the transitional period, Collins reports, and
will challenge the flexibility of management.
Scanlon Plans were developed in the 1930s as a way to link
improvements in productivity to employee wages. Popular because of
the large amount of employee involvement in their design, Scanlon
Plans are in place at 260 Fortune 1000 companies, as well as many
smaller firms. To understand the considerable variation in the
success of gainsharing plans and participatory management more
generally, Collins studied six companies that used Scanlon
Programs, explaining the nuts and bolts of each plan. He addresses
the concerns of workers, managers, and unions when they were
present, highlighting political games employees must address to
enhance success. Collins then offers a new theory of gainsharing
based on conflicts of interest at work.
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