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Workers’ Participation in Decision–Making Processes and Firm Stability

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  • Shlomo Mizrahi

Abstract

This paper argues that firm efficiency and stability, as well as workers’ satisfaction, can be achieved through participatory decision–making rules. It offers theoretical rationales and empirical illustrations based on the framing and operation of European works councils. Employees should take part in establishing the rules; otherwise managers will make rules that allow them to retain control of the key points in the decision–making process. In constructing such rules the involvement of unions is required; however, once rules are set union activity becomes marginal. Government intervention remains marginal throughout.

Suggested Citation

  • Shlomo Mizrahi, 2002. "Workers’ Participation in Decision–Making Processes and Firm Stability," British Journal of Industrial Relations, London School of Economics, vol. 40(4), pages 689-707, December.
    • Handle: RePEc:bla:brjirl:v:40:y:2002:i:4:p:689-707
    DOI: 10.1111/1467-8543.00252
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    Cited by:

    1. Aleksandra Gregorič & Marc Steffen Rapp, 2019. "Board‐Level Employee Representation (BLER) and Firms’ Responses to Crisis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(3), pages 376-422, July.
    2. Gregorič, Aleksandra, 2022. "Board-level worker representation," GLO Discussion Paper Series 1136, Global Labor Organization (GLO).
    3. Isichei Ejikeme Emmanuel & Godwin Ukandi Damachi, 2015. "Employees’ Participation in Decision Making and the Hospitality Industry in Nigeria. An Investigative Study of Selected Hotels in the Federal Capital Territory, Abuja, Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(4), pages 54-66, December.
    4. Sapulete, Saraï & van Witteloostuijn, Arjen & Kaufmann, Wesley, 2014. "An experimental study into the influence of works council advice on managerial decision-making," Scandinavian Journal of Management, Elsevier, vol. 30(3), pages 358-371.
    5. Mazzanti, Massimiliano & Pini, Paolo & Tortia, Ermanno, 2006. "Organizational innovations, human resources and firm performance: The Emilia-Romagna food sector," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 123-141, February.

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