How does employee ownership scheme affect a company’s overall financial growth? A case study analysis of John Lewis Partnership

Employee ownership is scheme that allows the employees of the company to have a stake in the company’s finances and also have a say in how the company is being operated. (GOV, n.d.) John Lewis Partnership is one of the companies that operate in the UK and have this scheme where all permanent employees are given company shares and allowed to have their say in its operations. John Spedan Lewis, the founder left a unique inheritance will when he died. (Ashton, 2010) Several experts have shown both negative and positive opinions about companies adopting this scheme. The scheme even though help motivate the companies and at the same reduce tax complications, several experts show their concerns towards the disadvantages. The ownership of the shares being diluted with the increment of employees can lead to employees taking measures that may not be favourable for the overall company growth. Similarly if the shares tend to fall or stay static on its value, the employees might again loose motivation. This dissertation will look into several literatures concerned with the advantages and disadvantages of employee ownership scheme and focus on the John Lewis Partnership to examine the effects of this scheme towards its financial history. It will also compare John Lewis Partnership with other companies that share the same scheme.
The aim of the dissertation is to analyse the financial history of John Lewis Partnership to establish if employee ownership scheme is an effective rewarding technique for company’s economic growth.
The objectives of the research are as follows:
• To evaluate the literature that provide and insight towards the advantages and disadvantages of employee ownership.
• To understand John Lewis Partnership’s financial performance before and after the implementation of employee ownership scheme.
• To establish whether employee ownership is the best scheme to opt for while considering employee motivation for company growth.
The research questions for this research are as follows:
• How has John Lewis Partnership’s finances changed after the implementation of employee ownership scheme?
• How does employee ownership scheme compare with other reward management techniques that are used as an incentive to promote company growth?

References
Ashton, J, 2010. “Happiness is a top pay peg; Will making public how bosses’ salaries compare with the average employee’s income curb executive rewards, asks James Ashton.” Sunday Times [London, England] 7 Nov. 2010: 2. Academic OneFile. Web. 15 Feb. 2016.

GOV, n.d. Employee Ownership Businesses. [online] Available at: https://www.gov.uk/employee-ownership [Accessed 15/02/2016]

EOA, 2012. Employee Ownership Impact Report. [PDF] Available at: http://employeeownership.co.uk/wp-content/uploads/The-Impact-Report.pdf [Accessed 15/02/2016]

TAKE ADVANTAGE OF OUR PROMOTIONAL DISCOUNT DISPLAYED ON THE WEBSITE AND GET A DISCOUNT FOR YOUR PAPER NOW!