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Authors: Vandra Huber (University of Washington); Leslie Lytel (University of Washington)
Published in: 1995

Abstract

In 1983, an entrepreneurial-minded mental health specialist was awarded a contract from the state of Washington to provide evaluation and treatment for involuntarily committed patients which allowed for a profit capped at 8.33 per cent of the annual contract amount. In 1985, a nurses union organised the staff of the hospital and represented the employees until 1990 when the Board of the North West Evaluation and Treatment Center introduced an ESOP, and forced the union''s decertification. Since that time, group incentives have been introduced and an ESOP has been established. Employees, however, have not embraced the plan nor their new role as employee-owners. By 1995, employees began demanding a voice in the operation of the business. The case illustrates the important role of internal communication and worker involvement during the introduction of an Employee Stock Ownership Plan specifically and in the successful navigation of a strategic organisational change effort generally. The case also describes a situation where people who provide daily care to seriously mentally ill patients are not typically entrepreneurially motivated and may hold profit driven work procedures with disdain.
Location:
Industry:
Size:
85 employees
Other setting(s):
1980-1994

About

Abstract

In 1983, an entrepreneurial-minded mental health specialist was awarded a contract from the state of Washington to provide evaluation and treatment for involuntarily committed patients which allowed for a profit capped at 8.33 per cent of the annual contract amount. In 1985, a nurses union organised the staff of the hospital and represented the employees until 1990 when the Board of the North West Evaluation and Treatment Center introduced an ESOP, and forced the union''s decertification. Since that time, group incentives have been introduced and an ESOP has been established. Employees, however, have not embraced the plan nor their new role as employee-owners. By 1995, employees began demanding a voice in the operation of the business. The case illustrates the important role of internal communication and worker involvement during the introduction of an Employee Stock Ownership Plan specifically and in the successful navigation of a strategic organisational change effort generally. The case also describes a situation where people who provide daily care to seriously mentally ill patients are not typically entrepreneurially motivated and may hold profit driven work procedures with disdain.

Settings

Location:
Industry:
Size:
85 employees
Other setting(s):
1980-1994

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