Adoption and Termination of Employee Involvement Programs

Using an interview survey of manufacturing establishments that provide 10 years of retrospective data on labor practices, we investigate factors associated with the adoption and termination of employee involvement programs and the relation between these and other human resource policies. In the period studied, more firms introduced than terminated such programs but a sufficiently large number chose to eliminate such programs to indicate that employee involvement does not fit in all business settings. Our results show that business strategy and the use of other complementary human resource policies affect the dynamics of employee involvement use in US manufacturing establishments.