«The more equal and involved community gave people longer, happier lives» (Erdal, 2011: 242). ‘Beyond the corporation: Humanity working’ is a factual and policy text of our modern economic system, in which David Erdal proposes to extend democracy into organisations, contributing to a better distribution of wealth. As a consequence, this view raises substantial economic, political and social debates. It is essential to indicate that the book was published not long after the financial crisis of 2008, which provides the author with an ideal context for supporting organic growth rather than seeking investment through capital markets. David Erdal has progressively built his credentials in the area of humanity working and Human egalitarianism. Starting from leveraging an employee buyout of his family business and being awarded the Scottish Business Achievement Award in 1989, he has then undertaken considerable procedures in creating an Employee Stock Ownership Plan (ESOP). Principally, David Erdal challenges the traditional economists’ approaches to organisational ownership structures, aiming at denouncing the immorality of current practices. Contrastingly, he promotes, in an easy and strong language, the benefits of employee ownership structures to society as a whole and the reason why this practice should be developed, which forms the purpose of this book. To support the feasibility of his thesis, Erdal draws upon personal experiences, through his family business, current business examples, such as John Lewis, but also through substantial academic references.
Throughout this review, we will firstly explore the key questions that Erdal raises and their implications into contemporary and policy debates. Secondly, we will perform an integrative analysis of the book structure and assumptions made, and thirdly we will provide a critical assessment of the author’s conclusions.
Table of Contents
1. Critical Book Review
2. In today’s highly precarious political and economic context
3. By suggesting this new economic system
4. Figure 1: The Job Characteristics Model
5. The second part of the book
6. The third part of the book
7. Table 1: Translation of Ownership Rights into Organizational Practices
8. Fourth part concludes on the constitution of human nature
Research Objectives and Topics
This critical book review aims to analyze David Erdal's work "Beyond the corporation: Humanity working" by exploring his proposed shift towards employee-owned organizational structures as a means to foster economic democracy, social equity, and long-term prosperity in a post-financial crisis context.
- Analysis of employee ownership as an alternative to traditional, investor-led corporate models.
- Evaluation of the democratic transformation of businesses to align with broader societal values.
- Integration of human resource management practices that support employee responsibility and motivation.
- Critique of the moral and ethical implications of contemporary economic systems and the need for organizational reform.
Excerpt from the book
Critical Book Review
« The more equal and involved community gave people longer, happier lives » (Erdal, 2011: 242). ‘Beyond the corporation: Humanity working’ is a factual and policy text of our modern economic system, in which David Erdal proposes to extend democracy into organisations, contributing to a better distribution of wealth. As a consequence, this view raises substantial economic, political and social debates. It is essential to indicate that the book was published not long after the financial crisis of 2008, which provides the author with an ideal context for supporting organic growth rather than seeking investment through capital markets.
David Erdal has progressively built his credentials in the area of humanity working and Human egalitarianism. Starting from leveraging an employee buyout of his family business and being awarded the Scottish Business Achievement Award in 1989, he has then undertaken considerable procedures in creating an Employee Stock Ownership Plan (ESOP). Principally, David Erdal challenges the traditional economists’ approaches to organisational ownership structures, aiming at denouncing the immorality of current practices. Contrastingly, he promotes, in an easy and strong language, the benefits of employee ownership structures to society as a whole and the reason why this practice should be developed, which forms the purpose of this book. To support the feasibility of his thesis, Erdal draws upon personal experiences, through his family business, current business examples, such as John Lewis, but also through substantial academic references.
Summary of Chapters
Critical Book Review: Provides an overview of the book's purpose and its focus on extending democracy within organizational structures to combat economic inequality.
In today’s highly precarious political and economic context: Explores the necessity for a shift in economic systems, moving from traditional factory models to those valuing human intellect, collaboration, and 'shared value'.
By suggesting this new economic system: Discusses Erdal's argument for organic growth through employee ownership to prevent speculative risks and promote a fairer distribution of wealth.
Figure 1: The Job Characteristics Model: Illustrates the framework for linking core job characteristics, such as autonomy and skill variety, to improved employee motivation and performance.
The second part of the book: Examines the reality of traditional employment, highlighting the need for social maturity and the potential for employee ownership to resolve the conflict between owners and workers.
The third part of the book: Offers practical guidelines for implementing employee-owned structures and highlights five core HR practices essential for fostering a sense of ownership.
Table 1: Translation of Ownership Rights into Organizational Practices: Maps ownership rights like use, returns, and sale to specific corporate governance and HRM practices.
Fourth part concludes on the constitution of human nature: Discusses how employee ownership aligns with natural human tendencies and argues for its role in serving the greater social good.
Keywords
Employee ownership, Corporate democracy, Human egalitarianism, Economic system, Financial crisis, Wealth distribution, Human resource management, Job characteristics model, Organizational structure, Business ethics, Labor managed firm, Sustainable competitive advantage, Stakeholder value, Collective responsibility, Social maturity.
Frequently Asked Questions
What is the core focus of this work?
The work is a critical review of David Erdal's book, which argues for extending democratic principles into organizational ownership structures to foster a more equitable society.
What are the primary themes discussed?
The central themes include economic democracy, employee ownership, the critique of traditional investor-led capitalism, and the role of human resource practices in enhancing employee commitment.
What is the primary objective of the author?
The objective is to denounce the perceived immorality of current corporate practices and advocate for a transition toward employee-owned models that prioritize long-term sustainability over short-term capital gains.
Which academic methods are utilized?
The analysis employs an integrative review of the book’s structure, contrasting the author's real-life business examples with traditional economic theories and empirical research on job design.
What aspects are covered in the main body?
The body covers the necessity for new economic systems, the application of job characteristics models, the implementation of specific HR practices, and the moral implications of labor management.
Which keywords characterize this publication?
Key terms include employee ownership, corporate democracy, human egalitarianism, sustainable competitive advantage, and business ethics.
How does Erdal suggest that firms move beyond traditional ownership?
He proposes shifting toward 'Labour Managed Firms' where workers participate in decision-making and reinvest productivity gains into the business rather than enriching external capital markets.
What is the significance of the Job Characteristics Model mentioned in the text?
It provides a theoretical basis for how specific job features—such as autonomy and task significance—can lead to increased employee responsibility, motivation, and high-quality performance.
Does the author address the potential challenges of employee ownership?
Yes, the review highlights concerns regarding employee eligibility, passivity, and the argument that a firm is a collection of human agents rather than a simple instrument to be owned.
What is the conclusion regarding the universality of Erdal's concept?
While the concept may not be universally applicable to all industries, the review concludes that it represents a natural organizational structure that can function effectively in most cultures.
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- Camille Boelen (Autor:in), 2013, Critical Book Review of "Humanity working" by David Erdal, München, GRIN Verlag, https://www.grin.com/document/282387
