The Power of Participation? Power Relations and Processes in Employee-owned Companies

Abstract

Introducing employee participation in a company can be expected to change the power relations and the power processes within the organization. This is particularly true when the majority ownership of a company moves into the hand of its employees. Drawing on three case studies of East German companies this paper describes how the introduction of employee ownership interrelates with power relations and processes in the company. Moreover, some overarching patterns were derived from the analysis finally resulting in seven propositions about how employee ownership and power are linked to each other.