Context, strategy and financial participation: a comparative analysis

Croucher, Richard and Brookes, Michael and Wood, Geoffrey and Brewster, Chris (2010) Context, strategy and financial participation: a comparative analysis. Human Relations, 63 (6). pp. 835-855. ISSN 0018-7267

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This article investigates where financial participation is most likely to be encountered, and explores its compatibility with collective forms of employee voice. It is based on the findings of a major international survey of human resource management (HRM) practices. We found that financial participation was not affected by collective employee voice, but that national context and associated HRM strategies had significant effects on its nature and extent. As financial participation is likely to make for greater variation in wage rates, it tends to weaken industry-level bargaining. By re-casting the fundamental determinants of wages, it is also likely to facilitate greater wage dispersion within the firm. Hence, it was found that financial participation is more commonly encountered in liberal market contexts, and in firms practising calculative HRM, where countervailing employee power is weak, whether or not collective bargaining is formally present.

Item Type:Article
Keywords (uncontrolled):Comparative and cross-cultural human resource management, finance, industrial relations, participation and workplace democracy, trade unions.
Research Areas:A. > Business School > Leadership, Work and Organisations > Employment Relations group
A. > Business School > Economics
A. > Business School
Citations on ISI Web of Science:1
ID Code:4471
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Deposited On:11 Mar 2010 10:12
Last Modified:12 Mar 2015 03:30

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