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Contradictions of Employee Involvement in Organizational Change - The Transformation Efforts in NCJM, An Indian Industrial Cooperative (Hardcover)
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Contradictions of Employee Involvement in Organizational Change - The Transformation Efforts in NCJM, An Indian Industrial Cooperative (Hardcover)
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This monograph narrates the decade-long struggle of workers,
unions, and management in transforming one of the largest ailing
family-owned jute businesses in India, into a sustainable
worker-owned and governed cooperative. It focuses on the variation
in the three groups' involvement in the transformation. It begins
with the employees' struggles in taking over the business, deserted
by its owners, to save their jobs. The study analyzes the tensions
between the three groups in creating and maintaining democratic
governance that would sustain the initial leap in employee
participation in the transformation. The analysis reveals
contradictions at multiple levels, starting with the unexpected
outcome of information sharing with workers: increased information
sharing by management resulting in decreased employee involvement.
The study explains this paradox by showing that for workers,
information has a symbolic nature and information sharing is a
signal of their trustworthiness in the assessment of those who are
privy to the information. This means involvement is contingent upon
the feeling that the information that workers consider crucial is
being shared with them. However, what workers consider crucial, and
thus a symbol of trust, changes over time as the nature and breadth
of their involvement evolves. Thus, worker expectation as well as
management and union expectation of information sharing evolves.
However, the evolution has the potential to create a mismatch
between the two expectations that might lead to contradictions in
employee involvement. While for management, information sharing is
an instrument in eliciting involvement, and thus management's
expectation of information sharing goes through an instrumental
loop, for employees, information sharing is a matter of trust, and
thus their expectation of information sharing goes through an
institutional trust-based loop. To sustain high employee
involvement, the organization should ideally institutionalize the
trust-based loop and avoid engaging with the instrumental loop. The
author proposes a collaborative approach to organizational
transformation that will help deal with the contradictions more
effectively, sustaining employee involvement in the transformation.
The author also discusses the implications of these propositions
for academic scholarship and organizational practices and situates
them in the ongoing attempts to reform Industrial Disputes Act in
India.
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