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Ownership and employee participation in ten leading companies on the Mexican Stock Exchange
Gómez-Nava, Rafael
Gómez-Nava, Rafael
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Abstract
The purpose of this research is to study, through the analysis and interviewing of their top managers, the ownership and employee participation in ten leading Mexican companies. In the company there are two ways to participate: a) in ownership, through incentive systems such as stock-options and ordinary stock plans, and b) in decision making and problem solving, by means of the three different approaches of empowerment, learning and knowledge. Contrary to what happens in other countries, ownership participation schemes, especially stock-options, have failed in Mexico. In this research seven factors that inhibit its practice in Mexico were identified; we describe four findings that soundly explain the Mexican actuality in terms of participation. In general, neither companies nor employees are interested in ownership participation by means of stock-options. Instead, given global competitive pressure, the leading Mexican companies have found that through employee participation they can achieve the company’s economic targets and goals. Participation is a must in the companies nowadays. It demands a new directive approach, in which high-level managers create an adequate business context (processes, systems, incentives) to have the employees participating in the decision-making process and ownership. It also requires a higher level of commitment and training from the employees. We suggest a framework where participation favors the development of a virtuous circle. From the business perspective, empowerment, learning and knowledge generation is fostered, as is loyalty, increased productivity and more satisfied employees. From the anthropological and moral perspective, participation is based on the social nature of the human being and the social and moral obligation of the company: the common good.
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2008
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With permission of the license/copyright holder