Equality, Participation, Transition: Essays in Honour of Branko Horvat
Equality, Participation, Transition: Essays in Honour of Branko Horvat
Equality, Participation, Transition: Essays in Honour of Branko Horvat
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production processes and product development areas, the transparency<br />
<strong>of</strong> company operation <strong>in</strong>creases and workers become better placed to<br />
participate <strong>in</strong> bus<strong>in</strong>ess decision-mak<strong>in</strong>g. Therefore, one solution may<br />
be to establish a closer connection between bus<strong>in</strong>ess results and workers’<br />
<strong>in</strong>volvement. Such a system, for example, is the open book management<br />
system (Case, 1998) which has lately become popular <strong>in</strong> the<br />
US. Under this system, workers are given detailed cash flow <strong>in</strong>formation,<br />
and over time develop a remuneration system which l<strong>in</strong>ks the<br />
<strong>in</strong>dividual or team contribution to cash flow. This is one form <strong>of</strong> pr<strong>of</strong>it<br />
shar<strong>in</strong>g, but it is also very close to the orig<strong>in</strong>al <strong>in</strong>tention <strong>of</strong> the selfmanagement<br />
system <strong>in</strong> the former Yugoslavia.<br />
The second solution may lie <strong>in</strong> the fact that people will become<br />
motivated out <strong>of</strong> self-<strong>in</strong>terest to acquire skills such as team work, cross<br />
department collaboration, multiple technical skills and so on, which<br />
are characteristic <strong>of</strong> firms with a quality based management, even<br />
when they do not expect that they will work permanently <strong>in</strong> such a<br />
company. The reason is that world class companies will <strong>in</strong>creas<strong>in</strong>gly<br />
expect these skills from newcomers and even temporary workers.<br />
Cooperative skills can become a basic requirement for be<strong>in</strong>g hired. We<br />
can foresee the situation where workplaces, as a result, will be much<br />
more cooperative and democratic than they are today. This development,<br />
we should stress, will come as a result <strong>of</strong> collective learn<strong>in</strong>g from<br />
world class companies and not from political or academic sources.<br />
7.5 Conclusion<br />
Tea Petr<strong>in</strong> and Alesa Vahcaica 113<br />
There is no simple model <strong>of</strong> the organization <strong>of</strong> the firm that can<br />
describe the complexity <strong>of</strong> rapidly chang<strong>in</strong>g production modes.<br />
Coexistence <strong>of</strong> solutions, depend<strong>in</strong>g on branch, technology, culture,<br />
habits and so forth, will prevail. The view <strong>of</strong> the firm as a collective <strong>of</strong><br />
homogeneous <strong>in</strong>dividuals, with equal <strong>in</strong>terests <strong>in</strong> the long-term survival<br />
<strong>of</strong> the firm, is no longer valid. Governments are gradually abandon<strong>in</strong>g<br />
the full responsibility for the social security <strong>of</strong> people and,<br />
<strong>in</strong>creas<strong>in</strong>gly, <strong>in</strong>dividuals and their families have to take responsibility<br />
for their <strong>in</strong>come and wealth. We are witness<strong>in</strong>g not only the globalization<br />
<strong>of</strong> firms but also the globalization <strong>of</strong> <strong>in</strong>dividual/family <strong>in</strong>come<br />
sources and wealth. Therefore, loyalty to one firm, which is an implicit<br />
assumption <strong>of</strong> the self-management model, is <strong>in</strong>creas<strong>in</strong>gly becom<strong>in</strong>g<br />
questionable. Also, with new trends <strong>of</strong> models <strong>of</strong> systems <strong>in</strong>tegration<br />
(Best, 1997), people are <strong>in</strong>creas<strong>in</strong>gly required to understand what other<br />
firms are do<strong>in</strong>g, <strong>in</strong> greater detail.