Mutual gains? labor and management evaluate their employee involvement programs

This study examines the impact of employee involvement programs on social, psychological, production, and economic issues. The findings are based on a diverse group of 236 EI programs in Pennsylvania, where data were gathered from both management and labor in the same workplace. The majority of the programs are based on a quality circle model; few contain innovative pay systems; and less than one third could be classified as intensive. Management indicates that these programs have a positive impact on a variety of factors, especially social and psychological effects. Unions are less enthusiastic about EI but are generally positive or neutral, with few indicating any negative effects. Despite these generally positive reports by both labor and management, direct comparison yields little agreement between labor and management on the effects of EI. Our results question the assumption of “mutual gains,” i.e., that the effects of EI programs are clear, public, and shared equally by both labor and management. Alternative explanations are discussed. This research was conducted with grants from the Pennsylvania Department of Labor and Industry and the Pennsylvania MILRITE Committee. The views expressed, however, are solely those of the authors.