Democratic management driving ethics and engagement in employee owned companies
Employee-owned firms are leading the way when it comes to ethics and management culture, with more democratic management cultures, high levels of employee motivation and a longer-term approach to business decisions. That’s according to the findings of an interim research paper published by the Chartered Management Institute (CMI) and MoralDNA™ to mark Employee Ownership Day. Supported by Fieldfisher and the eaga Trust, the paper features data from 829 employees across 14 employee-owned firms.
The survey found that 94% agree that being employee owned positively affects people’s commitment to the organisation, while 86% agreed it improves their ability to attract new staff. 90% said it improves overall performance, while almost four in five (79%) said that it encourages longer-term decision-making.
Part of the reason may lie in differences in the organisations’ management and leadership culture. 90% of those surveyed said the prevailing management style is a high-performing democratic, visionary, coaching or affiliative style – compared to just 59% in non-employee owned organisations surveyed previously. Those in employee owned firms were twice as likely to say that management was democratic (31 to 15%).
ANN FRANCKE, CMI CHIEF EXECUTIVE, SAID:
The research is the first of its kind to focus on companies owned by employee trusts.
GRAEME NUTTALL OBE, PARTNER AT LAW FIRM FIELDFISHER AND AUTHOR OF THE NUTTALL REVIEW OF EMPLOYEE OWNERSHIP FOR THE GOVERNMENT IN 2012, SAID:
The interim findings also indicate that employees score markedly differently to those in non-employee owned organisations when it comes to their ethical preferences. They scored higher on the ethic of care than a comparison sample of almost 52,000 employees from other sectors, and lower on the rule-driven ethic of obedience.
LEAD AUTHOR ROGER STEARE, VISITING PROFESSOR AT CASS BUSINESS SCHOOL, COMMENTS:
RICHARD MARR, CHIEF OPERATING OFFICER OF THE EAGA TRUST, COMMENTED:
Full press release on www.managers.org.uk
Connect with ADVO Group