Fred Freundlich Praktiker, Center for Applied Organizational Research Mondragon Unibertsitatea EMPLOYEE OWNERSHIP LEARNING & EDUCATION: The Role of Research & Evaluation European Federation of Employee Share Ownership (EFES) 5th European Meeting: EOLE Programme Good Practices in Employee Ownership Education & Training June 16th, 2005

2 Why are we here? …Importance of EO-FP and “EOLE” Much research shows: Importance of employee ownership (EO) or financial participation (FP) to employees and companies … € + psychological-organizational BUT ONLY when conditions in the company meet employees’ expectations about ownership … when ownership is combined with information-sharing + participation  a felt sense of ownership So … EOLE initiatives are crucial

3 Importance of “EOLE” initiatives: Content To meet these expectations, employee-owners should learn: OWNERSHIP FACTS* - How, concretely, EO or FP works, WHY the company has EO or FP. OWNERSHIP SKILLS – participation skills, financial skills, “applied problem-solving skills” OWNERSHIP VALUES – to understand the meaning of co-ownership … to internalize and BALANCE the rights and responsibilities, risks and rewards of co-ownership. * “Facts” “Skills” “Values” distinctions from Ownership Associates, Inc., USA

4 Why research on EOLE initiatives is important To move beyond impressions … to evaluate EOLE w. RIGOR  confidence in our evaluations To evaluate EOLE initiatives’ impact on: Employee learning (Ownership Facts and Skills) Employee attitudes, satisfaction w. EO-FP and w. the company (Ownership Values) Behavior … practices and performance: work area / department / business unit / company To improve EOLE initiatives

5 A Word on Research Methods Quantitative (questionnaire-based) VERSUS Qualitative (interview/observation-based): Not “VERSUS” but “AND” … methods have different uses, but can/should be complementary Quantitative methods: Generalizability and anonymity Qualitative methods: Depth, “local causality”, processes, meaning

6 What should be researched? (1) Interest in OWNERSHIP VALUES … attitudes ab. EO-FP 1. The importance to employees of the idea / potential of EO or FP… (to compare with #2 …“How important is the idea of EO / FP to you? to your co-workers?”) 2. Employees’ actual sense of EO or FP in the company now. (“How much does EO-FP at your company make you feel like a co-owner, a real participant?” ) 3. The importance to employees of different aspects of EO / FP (“How important to you are aspects of EO/FP: financial reward? Participation? Fairness? a sense of community?” etc.)

7 What should be researched? (2) Learning of Ownership Facts, Ownership Skills Kirkpatrick’s Triangle ……….4 levels of learning 4.Can demonstrate learning thru new behavior in NEW CONTEXTS, HAS IMPACT on co-workers or organization 3.Can demonstrate learning thru NEW BEHAVIOR 1.Shows SATISFACTION with learning and learning experience (increases probability of learning) 2.Can demonstrate new KNOWLEDGE, change in attitudes... on paper, in conversation. Knows the concepts.

8 What questions? Kirkpatrick’s Triangle ……….4 kinds of questions 3.“How do you / your co-workers do ‘X’?” … Do you / your co-workers do ‘X’ differently?” … “Did EO training affect how you do ‘X’?” … or a pre- /post design 2.“What did you learn about ‘N’?” … “ What is ‘X’?” … “How would you do ‘Q’?” … “Did EO training increase your knowledge of ‘Y’?” 1.“How satisfied were you with… content / trainer and style / method, etc.?” “How much did you learn about… ‘X’?” 4.Pre-/post- design: questions ab. organizational culture, group behavior + performance … AND… “Has dept / business unit / company changed? How much? Why? Was EO training related? How?”

9 Who should be asked? Kirkpatrick’s Triangle ………. kinds of respondents 3.Ask learners AND learners’ co-workers … 2. Ask learners and trainers. 1.Ask learners and trainers. 4.Ask learners AND learners’ co-workers …

10 The organizational psychology of organizational research Evaluation / research = organizational intervention, affects expectations, etc. … HENCE importance of: Communication and consensus BEFORE beginning Participatory design of instruments/content Communication of the results Use results for participatory change Especially in an EO or FP company

11 Conclusions 1. Research is a good way to begin a conversation in the firm … about what to change and how to make the changes. 2. Need for solid evaluation – valid and reliable information THEN you… Have a good idea of what is happening with EOLE Can learn from experience, improve EOLE in the future