New PDF release: A better way of doing business? : lessons from the John

By Salaman, Graeme; Storey, John

ISBN-10: 0191825999

ISBN-13: 9780191825996

ISBN-10: 0198782829

ISBN-13: 9780198782827

This paintings bargains a completely researched and obtainable account of the loo Lewis Partnership. It describes what the JLP is, the way it works, and what different companies can examine from it

summary: This paintings bargains a completely researched and obtainable account of the loo Lewis Partnership. It describes what the JLP is, the way it works, and what different companies can study from it

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Extra resources for A better way of doing business? : lessons from the John Lewis Partnership

Sample text

In his analysis of different modes of capitalism, Ronald Dore argues: Firms’ increased involvement with the foreign financial community will undoubtedly be one further route by which the shift to Anglo-Saxon notions of economic rationality comes to permeate Japanese management. (Dore 2000: 126) The dominant US/UK model of the firm is not only responsible for performance failures (chronic and acute) but also for the destruction of value. And it is responsible for a range of internal and wider societal problems including increasing disparity between rich and poor, declining national wealth, declining social-political legitimacy and stability, and ineffective and inappropriate governmental strategies and policies as governments address (inadequately) the symptoms but not the root causes of the problems they face.

Employee ownership is achieved through a mechanism which means shares are held in trust; partners are unable to sell their assets. The owners secure economic benefit as a significant proportion of profits, in the shape of an annual bonus, which is shared among all partners. Between 2007 and 2014, this averaged 16 per cent of salary per annum (11 per cent in 2015). A bonus is paid on top of salary. The bonus rate is the same for all partners—so if the managing directors get 16 per cent so too does a front-line worker.

But, more than this, the emphasis on the market as a purifying force also applies to relations within the enterprise (between managers and employees for example) and between firms and their suppliers. It also has more general applications: for example, for the ‘market oriented’ competences required by the new manager, for the structures, goals, and philosophy of organizations not previously regarded as involved in commercial relations (public sector healthcare, universities, and schools); for the design of structures and dynamics within organizations where conventional competition is difficult through the installation of proxy competition by the imposition of targets and measurement, with ranked ‘scores’ of achievement associated with sanctions or rewards—as in universities, schools, hospitals); and for the role and activities of the state where the emphasis on the market results in pressure to reduce the role of the public sector to regulate, to restrict state intervention, and to enlarge the role of the private sector.

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A better way of doing business? : lessons from the John Lewis Partnership by Salaman, Graeme; Storey, John


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