The Function of Employee Voice Systems in Small- and Medium-sized Enterprises

Abstract

In this thesis, the function of employee voice systems (labour union and employee organization) in small- and medium-sized enterprises was multilaterally examined by using the questionnaire survey. In particular, each effect of employee voice systems was analysed while paying attention to the difference in employee voice systems. The results of the analysis are as follows.

(1) The number of years of independent experience in the advanced skill formation index confirmed a positive correlation with the establishment of the labour union. However, a clear relation was not found with the employee organization. From this analysis result, it can be interpreted that the labour union can be established easily in companies where advanced skill formation occurs with the technology and the work characteristics of the company.

(2) The characteristics of the chief executive officer (CEO) influence the formation of employee voice systems, especially the labour union. In enterprises where the CEO is the founder, it is difficult to form the labour union. Moreover, it is easy to establish the employee organization in companies where the CEO was previously employed in the same company. It can be interpreted that the founder does not understand the labour union well. Although the difference in CEOs did not influence wage growth, the difference influenced the turnover rate and the interaction between the management and the labour union. The founder can improve the turnover rate. In addition, it was confirmed that internally promoted CEOs had a positive effect when disclosing management information and that the founder had a positive effect on the employee’s voice absorption.

(3) The labour union has a clear effect on wage growth, and the labour union and the employee organization that makes remarks have a substantial effect on the turnover rate decrease. Moreover, it was confirmed that the employee organization that makes remarks had a greater effect than the labour union did. However, the employee organization that cultivated friendship was ineffectual also than the wage growth and the turnover rate.

(4) The employee organization that makes remarks has a more intense effect on the disclosure of management information and on employee’s opinion absorption than the labour union does. In other words, it can be interpreted that the cost according to leaving from the enterprise has been decreased by the system that the employee is made to participate in management.

In this analysis, the difference in the employee organizations, which influenced the interaction between the labour union and the management, and in the labour unions, which influenced the negotiation of working conditions, was clarified. In particular, advanced skill formation is considered as a factor in creating this difference.