University of Twente researcher Jan Ekke Wigboldus describes in his dissertation how works councils can bring about positive economic effects. Wigboldus also discusses the conditions a works council must meet if these effects are to be achieved. He conducted his research at the IGS Institute for Innovation and Governance Studies and he will defend his PhD dissertation on 30 November 2011.
Previous research (primarily from Germany) has shown that works councils contribute to organizations' operational results. Research in this area is relatively new in the Netherlands. Wigboldus conducted an extensive literature review and eight intensive case studies on decision-making processes. Works councils contributed significantly to the organizations' operational results in all of these cases.
Understanding, acceptance and correction
The research has resulted in a theory consisting of three channels for enhancing the economic impact of an organization. The works council also requires compliance with four conditions for its contribution to be meaningful. The first channel is based on the input of new information and solutions, which the works council often has to offer thanks to its understanding of the workplace and the contacts it maintains there. Information gleaned from this source is often new to management and can result in improved operational results. The second channel is based on promoting the acceptance of management plans among employees, which helps to ensure the effectiveness of the plans. In the third channel, the works council corrects and blocks management activities that are not in the interest of the company.
Four conditions
The three channels differ with regards to the conditions necessary for effective use. The necessary conditions are power(both subtle and harsh), legitimacy (as perceived by the manager, his superiors and employees), urgency (weight of the benefit and time pressure) and complementarity. "This final condition is a supplement to an existing model. The works council is meant to fill a lacuna on the management side (something that management cannot see, does not want to see or simply doesn't see) so that it can have a positive effect on operational results. This study has interesting implications for the day-to-day activities of works councils and boards, but it can also serve as a basis for further research," says Wigboldus.
Further details
Jan Ekke Wigboldus will defend his PhD dissertation on 30 November 2011 at 16:45 in the Waaier building at the University of Twente. His supervising professor is Jan Kees Looise. His dissertation: 'Bron van Meerwaarde. De economische effecten van de ondernemingsraad' (Source of added value. The economic impact of the works council) is available upon request. For further information, members of the press should contact Janneke van den Elshout, Press Relations division, +31 (0)53 489 54 32.
