Pritchett Controls: ten years into employee ownership

Abstract

Synopsis This case illustrates the rationale for adopting employee ownership, and difficulties in implementing employee empowerment beyond investment. In the beginning it focuses on why Jerry Pritchett, one of the co-founders of Pritchett Controls, decided to convert it to an employee-owned company. In the body of the case, it details the efforts of the company to operate under its new ownership structure in an increasingly competitive environment. Although Pritchett established employee owners, only selected High Performance Work Systems (HPWS) practices have been implemented. The issue that reader must grapple with is whether other HPWS practices should be adopted or not. Research methodology Primary data were collected by interviewing eight managers including the current and former CEO at two of the firm’s three locations. Secondary data were used to supplement industry and competitive information. Relevant courses and levels Human resources courses, especially those that focus on strategic human resource management, organizational development, and how high performance organizations can be built, would be most appropriate for this case. Theoretical bases The primary theoretical foundations for this submission are shared entrepreneurship and HPWS. Knowledge of leadership, employee ownership, human resources, corporate governance, organizational culture and strategy would also be helpful in analyzing this case.