This website uses cookies to ensure you have the best experience. Learn more

Shared Capitalism Essay

1084 words - 5 pages

With the rising popularity of shared capitalism in the United States, it is worthwhile to analyze the effects this trend and the workplace theories that correspond to it. The purpose of the paper is to show not only how forms of shared capitalism in the workplace can increase overall employee compensation, but how several labor theories relate and support the outcomes of shared capitalism. More specifically, three theories will be extrapolated and the outcomes of shared capitalism will follow each theory. First, expectancy theory will be explained and followed by its correlation to motivation and increased compensation. Second, equity theory will be explained and followed by the results ...view middle of the document...

According to the GSS and NBER data, the increased forms of shared capitalism pay results in higher compensation (p. 272). While fixed pay may be near market level, in some instances, employee compensation remains higher than the market level. Employees under some form of shared capitalism tend to report feeling paid what they deserve (p. 272). More specifically, gain sharers experience a higher total compensation in relation to the market. This holds true for individuals with larger profit-sharing bonuses and owners through Employee Stock Purchase Plans and 401(k) plans (p. 273). The effects of shared capitalism on employee motivation are clear through the following statistics: 78% of workers would be motivated by receiving a cash incentive, 77% of workers would be motived by stock options, and 69% of workers would be motivated of workers would be motivated by receiving ESOP stock (p. 157). These sort of statistics make it clear that offering forms of shared capitalism in the workplace will definitely affect performance.
Equity theory puts forward the idea that people judge the fairness of their pay based on what another person is paid. The theory presumes that pay basis decisions, merit increases or bonuses, have a larger probability to induce equity judgments (p. 135). One way employers can influence the perception of the employees and make them feel the pay basis decisions are more equitable is to implement employee stock ownership plans (ESOPs). ESOPs have been advocated for increasing both worker motivation and productivity.
Many critics of ESOPs have claimed that employee ownership only changes the composition of wealth rather than adding to it. The evidence suggests otherwise. First, there does not seem to be a decrease in alternate forms of wealth with increasing employee ownership because NBER data suggests 94.2 cents of higher wealth per each added dollar of employer stock (p. 366). Second, NBER ESOPs data show that for one dollar that employee ownership increases there is a corresponding wealth increase of 80 cents (p. 366). This data seems to suggest that the wealth of employees involved in ESOPs is raised by nearly a dollar for every dollar increase in employee stock ownership. Therefore, there is little to no evidence suggesting that employee ownership merely changes the composition of wealth. Instead, since the data suggests a wealth increase for employees then there may be a reduction in...

Other Papers Like Shared Capitalism

Discuss Durkheim’S Theory Of Social Solidarity And Organic Solidarity

1097 words - 5 pages members the societies are larger in number than individual ideas and tendencies.The division of labour was little and it was divided by sex and age.In this type of society everyone carries out their similar tasks and work and the work is normally shared equally.The members express similar values and norms and this keeps them on the same level of likeness,thus there is no room given to individuality. In a mechanical system legal system law

The Role Of Education In Society

493 words - 2 pages up the system the individual progresses, the more personal freedom they have to control their own educational or working experiences, and more responsibility they have for their outcomes. Numerous studies show that many pupils have little regard for the rules of the school and little respect for the teacher. Paul Willis (Learning to Labour) showed that working class ‘lads’ learned to behave at school in ways quite at odds with capitalism wanted

Functions Of The Family

827 words - 4 pages for example the economic system. Functionalists argue society’s structure working together positively for the benefit of that society and this is known as the organic analogy. They believe society is based on shared norms and values which form the value consensus of that society. The process of socialisation which begins within the family is how people learn to norms and values of their culture. This means your early identity is formed from the

Secularism

1387 words - 6 pages international relations to one another. Krauthammer, A. (2011). Melville and the wall of the modern age. Studies in the Novel, 43(3), 378-380. Retrieved from http://search.proquest.com/docview/896664770?accountid=32521 To learn about the differences between modern age and modernity along with the capitalism defining modern age. After reading this article I have discovered that modern age is looked upon differently by different people and

What's Feminism Got To Do With Economy? A Study Of The Practice Of Prostitution

5501 words - 23 pages nature of prostitutes as labourers must be carefully studied. I shall try to do so following Carole Pateman’s arguments.Pateman writes, “Prostitution is an integral part of patriarchal capitalism. Wives are no longer put up for public auction (although in Australia, the United States and Britain they can be bought by mail order from the Phillipines), but men can buy sexual access to the women’s body in the capitalist market. Patriarchal right is

Business, Government, And Society

2316 words - 10 pages , government, and society have similar goals and objectives. How can all three affect each other? Let's make sure that you have an understanding of each term. Society is a group of individuals who reside in communities that have shared values and laws. In addition, society is made up of different religions, cultures, interests, attitudes, and lifestyles. Business consists of organizations that participate in consumer, industrial, or economic

Co-Operation In A Capitlist Economy

2181 words - 9 pages redemptions that helps them grow and contributes to vital rural communities” (CHS Inc.). On February 24 of this year, it was reported that CHS shared an estimated $519 million in cash to farmers, ranchers and co-operatives across the US. This distribution of wealth reinforces that the organization is in fact committed to providing financial support to its members by investing in their future, helping customers, farmer-owners and other stakeholders

War Essay Psychology

1486 words - 6 pages U.S. Marines direct a concentration of fire at the enemy, Vietnam, 8 May 1968 Issue indivisibility occurs when the two parties cannot avoid war by bargaining because the thing over which they are fighting cannot be shared between them, only owned entirely by one side or the other. Religious issues, such as control over the Temple Mount in Jerusalem, are more likely to be indivisible than economic issues. A bigger branch of the theory, advanced

What Is Business

1540 words - 7 pages profitability and the generating of more capital and wealth * Through this “invisible hand” of the market, the interaction of business commerce and occupation determines the standard of living, wealth, and prosperity of people, groups, and society * It also determines how profit will be shared between people and groups in a society * Business organizations are created to reduce transaction costs, the costs that arise from business

Middle Class

2827 words - 12 pages recession at the beginning of that decade – America’s first Great Recession – was the beginning of the end for the bourgeois proletariat. Steelworkers showed up for first shift to find padlocks on mill gates. Autoworkers were laid off for years. The lucky ones were transferred to plants far from home. The unlucky never built another car. When I was growing up, it was assumed that America’s shared prosperity was the natural endpoint of our economy’s

Social Media

6494 words - 26 pages of the Wall Street against the global capitalism in the USA. Discussion of the political impact of social media has focused on the power of mass protests. Social media’s real potential lies in supporting civil society and the public sphere. The social media has become contested terrain, a new form of class struggle, national liberation and pro-democracy movements. In this study, the role of social media in a democratic society, the power of

Related Essays

Feminist View Of Religion 33 Marks

1257 words - 6 pages liberation, she argues that it is not sufficient. We must also overthrow the ideology of familism that underpins the conventional family and its unequal division of labour. This would free the sexes from restrictive stereotypes and ensure domestic labour was shared equally. However, Marxists feminist fail to explain women’s subordination in non-capitalist societies. Also, unpaid domestic labour may benefit capitalism, as Marxist feminists claim, but

The Functionalist View On The Role Of Education

1302 words - 6 pages positive because it gives us a shared sense of belonging, he also believes that due to history in education we are all bonded together because we all share the same past. Moreover, he also said that education gives us social solidarity because we’re all functioning together in society due to education giving us specialised skills for the workforce and later life. Additionally, functionalists such as Parsons believe that education is vital because

Structural Theories Essay

1710 words - 7 pages just men who exploit women but also capitalist. Their view is capitalism is the root of all exploitation which also creates competition between social classes. They have views on the role of the family and they believe family maintains capitalism. They have a very strong opinion on school and believe education reproduce a passive workforce for capitalism as in students are taught workers should accept their position and that causes less conflict

Using Material From Item A And Elsewhere, Assess The Claim That ‘The Main Function Of Education Is To Maintain A Value Consensus In Society’

899 words - 4 pages The role of education in society is seen by many different people in many different ways. This is due to the fact that different sociologists hold different and conflicting views. Functionalists tend to believe that society is based on a shared culture of similar values and norms; as Item A mentions ‘Schools play a vital role by socializing young people into these basic values.’ Whereas, a different approach to education is one of Marxists, who