James O’Toole

In the only scientifically valid study of the motivations of a cross-section of the entire U.S. workforce, researchers unveiled the secret of why leaders…have been able to create working conditions that effectively tap into the deep wellspring of worker motivation. This 2002 survey of 3,000 workers, undertaken by the U.S. Census Bureau, found that there are two main sources of employee motivation, loyalty, commitment, and productivity: one, participation in decision making, and two, participation in the economic returns of the organization. The researchers found that the greater the participation in decision making, the greater the loyalty, commitment, and productivity of the worker. The greater the extent of participation in economic returns — in the form of profit sharing, stock ownership, stock options, and the like — the greater the worker loyalty and commitment. And, when the two forms of participation were combined — that is, high levels of employee involvement and ownership — the more positive the effect. In addition, it was found that the greater the level of participation, the more ethical the behavior of workers (for example, employees in high-involvement cultures were the most willing to intervene when a co-worker is under-performing or misbehaving).

Indeed, there is an ethical principal underlying these scientific findings: participation in decision making without participation in financial gains is unjust because executives and shareholders then reap the fruits of employees’ contributions. And participation in financial gains without participation in decision making is also unjust because workers are then powerless to influence the conditions that determine the size of their paychecks. The two forms of participation are thus positively linked, morally and practically.

This linkage has long been recognized in reward systems designed for top executives. But it also has been shown to motivate lower-level employees, as well, even with those with relatively little education.

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