Cheney 1995
Cheney 1995
To cite this article: George Cheney (1995) Democracy in the workplace: Theory and practice
from the perspective of communication, Journal of Applied Communication Research, 23:3,
167-200, DOI: 10.1080/00909889509365424
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Journal of Applied Communication Research
23 (1995), 167-200
George Cheney
ABSTRACT This essay considers a range of issues related to workplace democracy in the
contemporary industrialized world. Although drawing from a broad multi-disciplinary
literature, the essay emphasizes topics that can be usefully explored from the perspective of
communication and sound contributions that can be made to theory and practice from such an
engagement of the field. The essay essentially argues for the widespread democratization of
work but not without considering realistic limitations to that ideal. The case of the Mondragon
worker cooperatives, in the Basque region of Spain, is offered to demonstrate both the promise
and problems of workplace democracy.
"Many visitors come here and ask us why we have such an unusual business. But, I say
to them: 'Don't you think it's strange that more organizations in the world aren't like
this one?' "
—from the author's interview with a worker-member, the Mondragón cooperatives,
the Basque Country, Spain, May 1994.
S urely one of the great ironies of the modern world is that democracy, imperfect
as it is in the political realm, seldom extends to the workplace. In fact, most
U.S. citizens do not even question the fact that they are required to "check their
George Cheney is Associate Professor in the Department of Communication at the University of Colorado
at Boulder, Campus Box 270, Boulder, CO 80309. This paper was presented at the annual meeting of the
International Communication Association, Albuquerque, May 1995. The author expresses gratitude to
these researchers knowledgeable about the Mondragón cooperatives for helpful discussions and written
correspondence: Sue Eicher, Fred Freundlich, Sally Klingel, Terry Martin, Sheila Turpin-Forster and
William Foote Whyte. Also, I thank the late W. Charles Redding, Cynthia Stohl, Hollis Glaser, and Mike
Miller, in addition to the reviewers and the editor of this journal, for offering their insightful comments
on earlier drafts of this paper; and Bill Gorden and Ann Westenholz for providing some valuable
references. In addition, I acknowledge support from the Council on Creative Work of the University of
Colorado at Boulder for a grant-in-aid to conduct research in Mondragón, Spain from February through
June, 1994. I am very grateful to Jürgen Denk for lending me his car during my stay in the Basque
Country. And, above all, I give profound thanks to everyone at the Otalora Training Center of the
Mondragón Cooperative Corporation and to numerous persons in specific coops of Mondragón and
ULMA for allowing me to experience, explore, converse and debate, all in one of the world's most
beautiful and inviting places.
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DEMOCRACY IN THE WORKPLACE CHENEY
voice at the door" of the shop or office. Fortunately, some scholars and practitioners
have responded to Carole Pateman's (1970) call to examine carefully how our
democratic ideals apply to the workplace. David Ewing (1977) has observed the
prevalence of undemocratic organizations within what we commonly consider to be
a political democracy. Marshall Sashkin (1984) has insisted that participative
management is an ethical imperative, not only because it is consistent with
democratic principles but also because it satisfies basic needs, enhances health and
increases productivity. And, Bachrach and Botwinick have (1992) asserted workers'
rights from a political perspective, arguing that employees ought to share equally
"in decision making at all levels of the enterprises in which they work" (p. 163).
Finally, Susan Whalen (in progress) shows convincingly that workers' voices have
been systematically excluded from public discourse about the present and future
American workplace, surprisingly even in many discussions about "employee
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participation."
A searching consideration of workplace democracy—in the U.S., and for that
matter, around the world—could not be more timely. The "globalization" of
markets through the reduction of trade barriers here and elsewhere, the push for
greater productivity in all sectors, the implementation of new programs such as
Total Quality Management and Total Participative Management, rampant "downsiz-
ing" and "rightsizing" (with the sheer popularity of those euphemisms pointing to
the commonness of such cutbacks—we used to call them firings and layoffs), and
the acceleration of technological advances are some of the trends that are, for better
and for worse, changing the face of the workplace and affecting the lives of millions
if not billions of people. Pointedly, employee "empowerment" is now seen is a
double-edged sword: the employee with increased responsibility may also be the
employee with \y2 or 2 jobs to do. The brief but potent General Motors strike of
September, 1994, beginning in Detroit but spreading to other plants, represented
perhaps the first widely publicized objection by á large contingent of workers in the
U.S. to the norms of the New Workplace: greater responsibility within certain
parameters, more self-monitoring, and enlarged participation in a range of practices
and topics, but with longer hours, more stress and inevitably more frequent injuries
and illness. It is not surprising, then, that observers speak of "the end of
organizational loyalty" (Bennett, 1990) or "getting not just a job but a life"
(Edmondson, 1991). And, estimates of the percentage of U.S. workers happy or very
satisfied with their jobs often are at or below one-quarter of the workforce (see, e.g.,
Moravec, 1994). "Lean production" and "reengineering," representing a bare-bones
approach to overhead costs and staffing, are touted as the 1990s solutions to lack of
U.S. "competitiveness." But, what is often overlooked is people. Fortunately, in the
pages of our journals a number of articles have already appeared that challenge the
short-sighted dominant views on productivity, efficiency and competition (see, e.g.,
Barker & Cheney, 1994; Deetz, 1992; Fairhurst & Wendt, 1993; Mumby & Stohl,
1992). And, studies are beginning to explore the actuality of and potential for
worker resistance to new workplace systems in a U.S. environment where labor
unions no longer speak for a large segment of employees (see, e.g., Murphy, 1993;
Tompkins & Diamant, in progress).
Working from any one of a variety of humanistic perspectives (broadly speaking),
we must ask, "For whom are we designing or redesigning the workplace? For whom
is this accelerated pace? For whom are jobs and products and services and the
market, in the first place? For whom is increased competitiveness, worldwide?" In a
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JACR AUGUST 1995
While I am no economist and my concerns here are more focused on the internal
workings of modern organizations, big and small, I must attend to the larger
economic, political and social contexts for organizational change today (see, e.g.,
Deetz, 1994). Therefore, in examining what is possible for a political reordering of
the workplace, one consistent with the very principles that are enshrined by the
sacred documents of the U.S. and many other democracies around the world, we
must understand broad trends and forces at the same time that we look "inside" the
organization. (For a comprehensive economic treatment of the role of the demo-
cratic firm in various societies, see Ellerman, 1990.)
The simple but profound question, "How do we implement democratic practices
in work organizations?" leads us to think about the goals of organizations, the goals
of the individuals who inhabit them, and the goals of the larger society, recognizing
that those sets of aspirations can and perhaps should overlap even if not coincide
perfectly. What is democracy, speaking specifically and practically, in terms of
worklife? Other questions quickly follow: To what extent and in what situations is
workplace democracy desirable or beneficial? To what extent is it possible or
realistic as a goal? To what extent is it realizable or sustainable over the long term?
What are the effects of participative practice on employees and on the organization?
How far do particular participative systems go toward fostering a truly democratic
workplace? What, if anything, should be done when avenues of workplace
participation exist but are not pursued by individuals? And, to what extent is
democracy in the workplace connected with broader political and social practices
(that is, to activities beyond the organization)? These are the kinds of questions that
inspire this essay, in which I reflect on the questions and trace their pragmatic
versions through a case study of one large organization that is committed to
democracy. Above all, I wish to promote the ideal of a humane workplace, a
workplace not just for work but also for people, especially at a time when a
simplistic form of the market principle and a crude impulse for greater productivity
seem to preoccupy our factories, offices, schools, hospitals and universities.
Although full consideration of the issues listed above is beyond the scope of a
single article, I will in these pages consider some of the basic communication-
related issues implicated in a theoretical-practical exploration of organizational
democracy. As such, this essay is open to a variety of theoretical positions and
interpretations, in seeking to provoke further thought, discussion, empirical
research and social action.
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DEMOCRACY IN THE WORKPLACE CHENEY
marginal positions with respect to the established institutions of society (see, e.g.,
Sennett, 1980). Somewhere in the middle of this continuum are many worker-
owned and/or worker-managed cooperatives in the private or for-profit sector. (See
Dachler & Wilpert, 1978, for a thorough consideration of different rationales for and
concepts of workplace democracy.)
In all cases, however, the nature and authenticity of workplace democracy is at
issue. Neither democracy nor participation are unitary concepts, in that with each
we may speak of types and degrees (see, e.g., Harrison, 1994). Moreover, while sheer
participation is a necessary condition for democracy, it is certainly not sufficient.
As has often been noted with respect to U.S. politics during the last half of the
twentieth century, democratic structures may exist and yet invite only a low to
medium level of actual participation (hence, the plethora of voting-behavior
studies). Further, the nature of democracy itself is continually contested, as
political shifts on the late 1980s and early 1990s in various parts of the world have
powerfully shown (see, e.g., Barber, 1992, on "strong democracy"; and Deetz, 1992,
on "corporate colonization"). In the context of work, the active pursuit of a
democratic arrangement by, say, a majority group in a worker cooperative often
engenders paradox: To what extent can democracy be forced, pushed, or mandated,
even by a benevolent and value-motivated majority (see, e.g., Westenholz, 1993)?
Similarly, the relationship between economic control and participation in actual
decision making must be considered, especially in for-profit firms. This relationship
is complex and important; for, as Edward Greenberg (1986) concludes from his
extensive research on U.S. worker-owned firms, individual alienation and estrange-
ment from the body social can persist even in an organization where economic
ownership truly is shared. Thus, most Marxist positions on the matter are too
narrow in not giving sufficient attention to the social "logic" and dynamics of the
organization; however, such critiques do direct our attention to the self-promoting
aspects of the market, to the structures which divorce workers from control over the
products and processes of their labor, and to genuine differences in wealth and
power between groups (see, e.g., Burawoy, 1979, for a noteworthy exception).
This essay considers some of the communication-related issues of democracy in
the workplace, where workplace democracy is defined broadly as a system of
governance which truly values individual goals and feelings (e.g., equitable remunera-
tion, the pursuit of enriching work and the right to express oneself) as well as typically
organizational objectives (e.g., effectiveness and efficiency, reflectively conceived),
which actively fosters the connection between those two sets of concerns by
171
research, will appear elsewhere (Cheney & Hirsch, in progress). However, I must
observe that neither the philosophy nor the practice of democracy at work are new.
The ideal of a democratic workplace, however formerly restricted to white male
elites, can certainly be traced at least as far back as ancient Athens. Specific
concerns about how to democratize factories, for example, were addressed by
German, French and British philosophers in the mid- to late-nineteenth century
(see, e.g., Warner, 1984). And sometimes radical experiments, such as the French
worker-priest movement of the middle of this century, where priests entered the
workplace to work shoulder-to-shoulder with laborers, have attracted interest far
beyond their locales. And, of course, many representatives of the Human Relations
Movement, which heavily influenced the U.S. workplace between 1930 and 1965,
were genuinely committed to at least some measures of workplace democracy—
albeit often in conjunction with interests in productivity (see, e.g., the review by
Redding, 1972; see also Trist & Murray, 1993, on socio-technical systems).
Perhaps the examples best known in the popular consciousness of workplace
democracy are the so-called Utopian communities of Great Britain and the United
States during the early to mid-1800s. British industrialist Robert Owen, for
instance, responded to the alienation of factory workers in England by creating
worker-owned and worker-managed enterprises in the 1830s. While Owen by no
means eliminated alienating practices from his factories—he, for example, main-
tained a strict, over-the-shoulder monitoring system—he did make shared owner-
ship and structural control by workers to be pillars of the enterprise (see, e.g.,
Weisbord, 1991). Eventually, these experiments disappeared or were coopted, in
part because of outside influence in the form of absentee stock ownership. Once
Owen and others sought to expand the capital base of the organizations by selling
shares to persons other than employees, the companies were pressured by their new
"absentee landlords" toward becoming just like the traditional corporations of the
time: both autonomy and distinctiveness were lost.
linkages is 10; but for a group of 10, the number jumps to 45. In addition, limitations
of human cognitive-processing capacity make it difficult for an individual to keep
track of a great number of relationships simultaneously. This general finding about
human information processing supports conventional wisdom about span of
control (e.g., Fayol, 1949) in that one supervisor cannot function well with more
than ten or so employees. So we find several areas of social science research
converging on a single principle: that the intense, face-to-face interaction required
by real, direct democratic participation cannot be maintained in something larger
than what tve call a small group. Larger groups must therefore create subunits or
spin off new organizations. This reality is understood deeply by all who have
observed the growth of an organization beyond its few initial members: whether in a
student club, a faculty, a high-tech firm, a congress, or a religious congregation. In
this way, the practical reality of growth confronts us with the distinction between
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direct and representative democracy and with the need to create subunits where, in
many instances, the spirit of direct democracy may be preserved within the larger
context of representative decision making.
For example, size is an important concern in the University of Colorado's INVST
(International and National Voluntary Service Training) program. The program
involves special courses in the analysis of social problems, leadership-oriented
internships in Denver metro agencies, innovative summer experiences locally and
internationally, and intense student participation in the policy-making functions of
the organization. To further secure the place of the organization within the
university, more students than the current number of 30 need to participate. But,
growth can threaten the intimate, communal and democratic aspects of the
organization. Thus, the group is contemplating the creation of subunits that would
sometimes join together in larger meetings while creating mechanisms of represen-
tation. But, such a change in structure and size must be handled with care lest the
organization lose not only a measure of intimacy in relations but also something of
its essentially innovative character.
Jane Mansbridge (1983), from her extensive political-anthropological investiga-
tions of organizations as diverse as town meetings and crisis-line support groups,
argues that a vision of unitary democracy in which value consensus is constitutive
of the organization is best pursued by smallish organizations (cf. Hansmann's,
1990, argument that workplace democracy is only feasible in small homogeneous
organizations). Even in those cases, though, tensions can arise over, say, how to
define an appropriate political stance. The value consensus of the majority can
sometimes become a source of oppression for the minority of persons who adopt
dissenting views: in the interest of building consensus, the organization can
intentionally or unwittingly obstruct the development of diversity. At a larger level
an adversarial model of democracy in which competing interests are institutional-
ized and have proportional representation and influence is most fitting for an
organization or political unit. Mansbridge's overarching point is that the pursuit of
genuine democracy, at work or elsewhere, must take into account the reality of size
and its implications for social structure and communication practice.
In a well-known article, Mansbridge (1973) explains that there are three
significant challenges to any participative group: these are managing time, handling
the frequent and intense expression of emotion, and coping with the reality of certain
inequalities. Inequality, for instance, is likely to be perceived because of different
types and levels of expertise on the part of group members. These real differences
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JACR AUGUST 1995
should be celebrated in such a way as to draw upon the full range of members'
resources while maintaining the personal equality of members. All of Mansbridge's
challenges are manifested in and must be handled through communication. And, as
observed in a recent dissertation that reframes Mansbridge's factors in explicitly
communicative terms, time, emotion and inequality are in fact interdependent sets
of issues (Glaser, 1994). Further, Mulder and Wilke (1970) report experimental
findings that inequality will always appear in a decision-making group because of
differences in the skills of communication and persuasion. Each of Mansbridge's
challenges is intensified with the increased size of the organization, even when the
organization maintains the small-group decision-making unit.2
Based on the observation of participatory groups, one can add to Mansbridge's list
of challenges the threat of mutual monitoring. That is, in comparatively leaderless
groups, where the role of an outside "boss," administrator, supervisor, or overseer,
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Maintaining Integrity
The Iron Rule of Oligarchy, however seriously it is taken, throws down a gauntlet
to those who wish to maintain widespread and intense participation in decision
making in organizations that grow beyond the small-group level. In fact, Michels'
hypothesis calls into question the possibility of longevity for a truly democratic
organization. The issue is taken up by Rothschild and Whitt (1988) in their five case
studies of alternative organizations, including a newspaper, a food coop, a free
clinic, a law collective and an innovative high school. The authors observe that
some alternative enterprises are founded so as to be short-lived. That is, some
organizations actually decide on going out of existence after a certain time, rather
than find themselves coopted by outside forces (e.g., competitors or monitoring
agencies) or falling back on traditional, hierarchical practice. Extraordinarily, some
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organizations plan for their own demise rather than becoming rigidly permanent or
finding themselves drifting away from their basic goals. In this sense, institutional-
ization and growth can pose direct threats to organizational integrity. Sheer
longevity is thus an issue in efforts to establish and maintain organizational
democracy. It may be, for example, that the spontaneous and spirited elements in
the life of a newly-formed organization cannot be enjoyed over the long haul.
Certainly, Max Weber (1978) raised this precise question with respect to
charismatic authority in the form of organizations (such as religious sects) that are
born and grow up around the passion and character of a powerful leader. The
"routinization of charisma," as Weber called it, represents an organization's attempt
to preserve its singular aspects beyond the involvement of its founding member(s).
This is why the problem of succession is so vexing for relatively new organizations
(e.g., "What do we do now that our leader is gone?"). All organizations are founded
through special instances of informal communication because formal structure
cannot spontaneously come into existence (see Barnard, 1938/1968). Further, many
organizations develop through the inspirational guidance of a person or a small
group. Preserving or institutionalizing inspiration is an enormous and paradoxical
challenge, particularly for organizations that define themselves in contrast to the
"mainstream." The problem of succession can be exceptionally trying when the
founders are those perceived to be the embodiment of special values or the holders
of particular knowledge.
More generally, of course, Weber (1978) feared what he saw as the inevitable
"march of rationalization": that society as a whole as well as particular organiza-
tions would move toward bureaucratic order. In one sense, the bureaucratic impulse
is deeply democratic: in the widespread development of civil-service systems in
North America and Europe of the late nineteenth century, a serious effort was made
to grant equal—or relatively equal—opportunity through merit. In this way,
bureaucracy embodies the ideal of equality. But, as Weber (1978) rightly feared,
bureaucracy also tends to overconcentrate power, depersonalize participation, and
remove people from the consideration of transcendent goals. The tendency of many
initially creative and flexible social-movement organizations and high-tech compa-
nies to experience creeping bureaucratization is living testimony to Weber's
prophecy about the sweep of bureaucracy. But, a question remains about the
possibilities for bureaucracy being overtaken by other models of organization,
especially as prompted by the appearance of hierarchically flat and operationally
flexible small firms. Tompkins and Cheney (1985), for example, observe the
177
remarkably, the organization actually witnessed the achievement of its initial goal.
structure and some of the practices of the organization are distinctly different now
from what they were ten years ago: today, for instance, the organization has a radial
design with working groups that involve numerous citizens and that elect
representatives to a core group.
Level. The third criterion is tied to the highest level(s) of the organization in
which democracy is practiced. This has two interrelated senses: the first pertains to
the locus of participative activity, and the second relates to the extent to which
regular employees are empowered to deal with higher-level issues. Here again,
things are not always as they may appear: presumably democratic change can yield
some surprisingly and disturbingly undemocratic results. Many organizations that
have reorganized themselves around semi-autonomous work teams and that allow
for a great deal of participation at the production levels of the hierarchy in fact
maintain traditional relationships at the upper-management levels (see, e.g., Barker,
1993). Such a division can undermine the confidence and trust of lower-level
employees in the participative program. This message is implicit: "We're going to
implement a new program; be committed to it; it'll be good for you as well as for the
company; but, by the way, don't expect all of us to participate." Moreover, when
workplace democracy is imposed but not practiced by top managers or administra-
tors, the entire system can be called into question. There is thus a dual problem in
the establishment of many quality-circle and other participation programs: the
avowedly democratic programs are mandated and implemented from "the top" even
as they exclude policy makers from the regular practices (see, e.g., Grenier, 1988). In
182
such instances the privilege to make policy and structural decisions also is retained
at the top.
As Daniele Linhart (1992) observes with respect to the evolution of French firms,
even in cases of announced "organizational revolutions," where participative
management is employed throughout corporations, the persistence of reactionary
and somewhat dehumanizing Tayloristic principles at the level of the work can
undermine the larger democratic goals. Thus, any announced claim of "industrial
or workplace democracy" needs to be examined very carefully in terms of the
day-to-day practices and the whole set of experiences that constitute life in the
organization.
However, there are other cases—for example, those described by Kathy Iannello
(1992) in her accounts of feminist groups—where the entire organization is
committed to and practices a form of egalitarianism. In Iannello's view, the source
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Democracy as Process
These three criteria—the range of issues, the extent of influence, and the highest
levels involved in participation—remind us that democracy, participation and
equality are continually contested terms. That is, one person's vision of a democratic
order in the workplace may be another person's idea of an oppressive or limited
arrangement. (In this light, consider Habermas's, 1981, "ideal speech situation" in
terms not only of its approachability in practice but also in its capacity for
self-adjustment.) For example, more radical observers of presumably democratic
183
exclude the interests of some persons and some groups. (Of course, some critics
reject this posture as a cop-out and a de facto endorsement of the status quo.) Those
in the minorities would then be faced with the options of silence, covert opposition
from "the margins," revolution or flight (cf. Hirschman's, 1976, economic-political
options of "exit," "voice," or "loyalty"). This viewpoints us toward an understanding
of democracy as a self-critical, self-regenerating and self-correcting process, as
opposed to a conception that emphasizes a specific type of structural arrangement.
For example, Yohanan Stryjan (1989) uses Anthony Giddens' (1984) Theory of
Structuration to show how delicate are the cyclical processes of interaction in the
"self-managed" organization. Still, he argues that such organizations are potentially
equipped to modify their own ways of doing things and thereby adapt to their
changing environments.
Power, Persuasion and Socialization. And, even more difficult is the assess-
ment of what Steven Lukes (1974) calls the "third dimension" of power: the extent
to which the true interests of minorities have been so suppressed through
socialization that their interests do not even come to the minds of those for whom
structural or policy changes would be beneficial. John Gaventa's (1980) critical-
historical study of power and powerless in an Appalachian area of eastern
Tennessee is poignant, showing that various socio-political factors can lead people
to non-participation and even to non-awareness. This critical perspective on power
implies that the observer-researcher must endeavor to prove "the counterfactual" in
the effort to support democracy: he or she must try to show that "things would be
different in this system if only the suppressed or oppressed members had come to
realize and express what was in their own best interests." In other words, can we
prove or strongly support the idea that if certain groups were in a different situation
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they would in fact be able to act upon their interests in a way that they cannot or
will not do with the status quo in place? Such a challenge entails an enormous
burden of proof; nevertheless, it reminds us to be vigilant and circumspect in
labeling any organization or social system "democratic." This is precisely why
assertions that "We have a consensus here!?!" should be advanced and received
with great care. Also, Lukes' critical perspective points the researcher toward the
careful examination of communication patterns. Lukes' "third dimension" of power
can be explained in more concrete terms with attention to the rhetorical aspects
organizational life: for example, with respect to how dominant, organizationally-
approved value premises (e.g., "Don't rock the boat") are inculcated in the minds of
organizational members through ongoing and perhaps unnoticed socialization
processes (see Tompkins & Cheney, 1985). However, the internalization of certain
values—say, when members take seriously the idea of "responsibility" in their own
positions—can actually limit the extent of organizational control in that the
employees become more loyal to the values than to the organization (see Bullis',
1991, case study of the U.S. Forest Service).
to yield greater job satisfaction, identification with the organization, and commit-
ment to core values (such as the general philosophy of "cooperativism"). Putting
together Tyson's (e.g., 1979) and Tannenbaum's (1983) arguments we can describe
a circular pattern of reinforcement of basic values in the case of a successful
cooperative system: Active participation in and deep commitment to a coop can
allow the organization to overcome a tendency toward economic inefficiency; this
vitality in turn encourages the organization to maintain its democratic order; and
that in turn strengthens individual members' commitments to core values. The fact
that this cycle of influence can easily be broken or reversed—say, in times of
cutbacks in personnel or in financial resources—means that a great deal of
vigilance is needed.
In fact, it is common in many different types of organizations (large public
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universities, for example) to view democracy and other socio-political goals as mere
luxuries to be enjoyed or indulged only in "fat" times. The scholarly literature and
my personal experience point me to a drastically different conclusion, however: that
the social life of the organization deserves perhaps extra attention during tough
economic times—when individual financial rewards may be few, when organiza-
tional cohesion may be threatened, and when the "social side" of the organization
may in fact be the key to continuance and future success. In my view, then,
organizational democracy is both an ethical and a pragmatic imperative.
the elite pilots has been widely questioned by those outside the firm. In his
longitudinal studies of worker-owned plywood coops in the Pacific Northwest,
Greenberg (1986) has found little to suggest that the democratic structure of the
organizations has a "ripple effect" or even that workers become intensely commit-
ted to the principles of participation on which their organizations are based.
Huspek and Kendall (1991) offer further support for this conclusion in the study of
similar firms. They find that the political consciousness of the workers is often
circumscribed by their own language and that they experience a definition of
political life that is quite different and separate from that of the larger society.
Clearly, though, there is great need for further research on the relationship between
participation inside and outside the workplace, especially in light of how electronic
and computer-mediated communications are transforming both domains and their
boundaries.
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Background on Mondragón
The Mondragón system in fact grew out of fifteen years of small-group discussion
and analysis (1941-1956), with the guidance of a Basque priest, José María
Arizmendiarrieta, and the active involvement of five young engineers. "Arizmendi"
envisioned the coops as a "third way" between the options of unbridled capitalism
and centralized socialism that preserved individual economic incentive while
emphasizing collective commitment and goals. A small technical school, that
treated not only engineering and science but also principles of cooperativism, was
created in 1943. The first coop, ULGOR, now part of FAGOR and the largest
refrigerator manufacturer in Spain, was opened in 1956. Today the system includes
more than 150 cooperative organizations and employs over 23,000 people. To-
gether, in the form of the Mondragón Cooperative Corporation, the coops make up
the 15th largest private firm in Spain.
Each socio-trabajador (or worker-owner-associate-member) is an economic owner
of his/her coop through a complex system of investment and return. A substantial
portion of profits, often up to 70 percent, go to owner-members in the form of
individual capital accounts and direct benefits; approximately 20% of the profits is
188
DEMOCRACY IN THE WORKPLACE CHENEY
First, is wage solidarity: the index of highest to lowest salaries has always been kept
narrow (more on this a bit later). Second, there is tremendous job security, with
extensive use of lateral transfers between coops and very few layoffs or early
retirements. Third, intercooperative solidarity means that both benefits (or profits)
and losses are socialized within a group of coops that comprise one industrial sector
(say, automotive parts). A bad year by one of the coops in the group is compensated
for directly by contributions from others that are doing better. Finally, solidarity
with the environment means both the protection of jobs in a locale and assistance to
the wider community and to the world.
internal changes that challenge the traditions of the Mondragón system; some of
these are related to the larger cultural changes evident within Basque and Spanish
societies, and others are not. For example, as women have made their presence
known in the Spanish and Basque workforces during the past two decades, so they
have come to comprise about 35% of all employee-members in the coops. However,
the fact that many men at Mondragón still point to the existence of a special
women's coop as a sign of progress and are somewhat defensive about the
comparatively small numbers of women in top-level managerial positions suggests
a need for further efforts in this area. Also, the noticeable decline in religiosity in
predominantly Catholic Spain in the period since Francisco Franco's death in 1975
characterizes life in the Basque Country. But, while the founding principles of the
coops do parallel liberal 20th-century Catholic social teaching (as well as being
derived to some extent from the cooperatives of Robert Owen and some of his
disciples in mid-19th-century Britain, the "Rochdale Pioneers"), the principles are
now comfortably but forcefully seen in a secular context. However, the much-
discussed increase in the pace of life—felt keenly by everyone on the street—seems
tightly connected with pressures to be more productive and competitive and with
temptations to be more materialistic and individualistic. In fact, so prevalent were
such comments to me in both formal interviews and informal conversations that it
became clear that this entire set of issues was an important part of the popular
consciousness and the sense of "what's happening to us."
supermarkets as cooperatives; thus, their employees are neither owners nor voting
members. In a sense, the organization is departing from its "evangelical" stance, a
position embodied in one of its ten cooperative principles. Thus, the matter of how
the cooperatives communicate their identities and values to both "insiders" and
"outsiders" becomes extremely important. Interesting in this regard is that the
cooperatives are doing more to develop their public-relations and internal commu-
nications functions, areas that were in the past largely ignored because in many
ways they were not needed.
highest and lowest paid worker-members. When the first coop was founded in 1956,
the ratio between "top" and "bottom" was set constitutionally at 3:1, meaning that
the highest paid employees could make no more than three times that of the lowest
paid ones. (This is in marked contrast to the ratio in most large U.S. corporations,
where it ranges between 200:1 and 300:1. Ben and Jerry's Ice Cream of Vermont is
considered radical in the American context because its ratio has been set at 7:1.)
Gradually, Mondragón's pay-solidarity ratio was widened to 4.5:1 and then to 6:1
(although when taxes are taken into account, the last index becomes more like 4:1 in
actuality). In 1991 the Cooperative Congress permitted individual coops as well as
the corporate superstructure to peg salaries to a level of up to 70% of the market rate.
Even though the real salaries of the top managers implicated by this new policy
actually make today only about 50% of their outside market counterparts, the fact of
the change and the new mystery surrounding salaries of 25 or so persons in the
"cúpula" (as some worker-members call top corporate management), is very
divisive. The symbolic aspects of the policy change were disheartening for many
persons and seemed to overshadow the question of real salaries. The reality of the
change in salary structure, as well as the speculation about it, has divided the
members of the coops between those who seek change and point to the realities of
the larger economic environment (e.g., "We have to be realistic") and those who
seek to preserve tradition and point to the distinctive commitments and practices of
the coops (e.g., "Our confidence in each other has been broken"). The ways in
which coop members interpret and discuss this transformation reveal much about
their conceptions of what is essential to or constitutive of the coops and indicate also
what wage solidarity will mean in the future.
guiding functions are being assumed by the central offices of the Mondragon
Corporación Cooperativa, formerly Grupo Cooperativa Mondragon (and some
observers consider this name change in itself to be important in that it suggests to
some a further departure from the heritage of the coops). This transformation is seen
as necessary for efficiency by some but as a threat to "local control" within each
coop by others. At issue is the degree to which the advantages of creating
centralized functions—for example, ease of coordination—truly outweigh the
losses in terms of the sense of "groupness" that characterizes many of the individual
coops. Some of the coops are thus fearful of losing both autonomy and identity.
And, a social movement—formal unions are not allowed in principle—has arisen
within the 9,000 member FAGOR regional group to oppose strongly the "breaking of
the traditional bonds of people to people and people to the land." It is important to
recognize that intercooperative solidarity was originally defined within regional
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Focus on Communication
These and related questions point us to the analysis of messages (such as
individual and corporate accounts of decisions), levels and objects of identification
by employee-members (such as commitments to transcendent goals), and formal
and informal practices in the organization (such as training programs and employee
communications). The range of meanings for a particular value term, say, "partici-
pation," becomes very important in that some terms are likely to allow more
"symbolic maneuvering room" than others with a more restrictive range of
meanings (cf. Cheney, 1991; Eisenberg, 1984; Stohl, 1993). Of course, we also must
attend to the structural aspects of such an organization: that is, the ways in which
day-to-day communication is "architecturally" shaped through the prescription of
relationships, messages and decision-making procedures (seeMcPhee, 1985).
Values such as democracy, solidarity and equality are realized to a great extent
through talk. How, for example, can a commitment to participation be effectively
demonstrated except through access to, by the structure of, and with respect to the
content of discussions? And the reinforcement or erosion of such values similarly
takes place in and through communication practice: that is, democracy itself must
be discussed, assessed and modified in an ongoing manner if it is to be effectively
maintained. However, the expressed meanings for communication-related values
such as participation and equality can be rigid or flexible, changing or relatively
constant, broadly encompassing or narrowly circumscribed. In other words, one
person's vision of democracy, in the workplace or elsewhere, is by no means the
next person's; universality cannot be simply presumed; consensus cannot be
merely assumed. And, the pursuit of such values can and often does engender
conflict, contradiction and paradox. If, for example, a democratic work system
opens itself to new members and new ideas that involve strong challenges to the
existing democratic order, what then? ("Should we admit people who may try to
change radically our organization?")
We should therefore study both the activities of participation themselves as well
the ways in which coop members interpret and reflect upon participation and
related values. In the middle phase of my project, I am conducting an examination
of the "texts" of over 100 interviews (conducted entirely in Spanish and audio-
193
taped): one quarter are from a wide sampling of coops and levels; the rest come from
three distinct and diverse coops of 140-250 worker-members. All interviewees were
selected by me; in the case of the three select coops (one, a recent a struggling
conversion of a traditional capitalist firm; another, a recent "regionalist" departure
from the corporation; and another, a highly profitable coop that is also fairly central
to the corporate structure), I used stratified random sampling to interview between
10 and 20% of the worker-members in each case. These interviews were conducted
between late February and late June, 1994. Also, I attended several general assembly
meetings and related preparatory "chats" (for groups of 20-40 worker-members) in
May of 1994 and participated in several training workshops (focused on principles
of cooperativism and human relations) in May of 1994. In addition, I was party to
hundreds of informal conversations, both inside and outside the coops, often
having the opportunity to observe work-in-process. And, I have conducted a
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preliminary, but broad content analysis of the corporate house organ, Trabajo y
Unión (or "Work and Union"), distributed monthly to all worker-members.
3. Identity. Related to the second point above is the struggle over the identity of
the coops: sustaining distinctiveness while striving toward broader appeal. Al-
though the Mondragón coops are to some extent grounded in Basque culture, recent
observers of them have insisted that the "cultural factor17' should not be allowed to
overshadow the internal structures and dynamics of the cooperatives in explaining
their successes to date (see, e.g., Morrison, 1991). Still, until very recently, the coops
themselves have been styled as Basque coops. (This is the case even though many
worker-members, as immigrants from other parts of Spain to the Basque Country in
the economically booming 1960s and early 1970s, do not really think of themselves
as Basques and do not speak the incredibly challenging and wholly unique
language, Euskera.) In the 1990s, the coops are spreading well beyond the Basque
Country, to the neighboring provinces of Navarra and Cantabria, for example. And
the Corporation now maintains satellite offices in France, Germany and the U.S.
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The question "Who are we?" thus surfaces frequently. And the questioning is
focused on and most manifest in the current search for a new name for the entire
system, now called the Mondragón Cooperative Corporation. Many seek a title and
an identity that is sufficiently inclusive to symbolize the coops' expanse, yet
comparatively local to stress distinctiveness.
EPILOGUE
We thus have in Mondragón a giant and complex laboratory for the study of
workplace democracy within the context of the increasingly globalized market
economy. This case, with nearly four decades of rich experience behind it, affords
important opportunities for theoretically-informed and practically-oriented commu-
nication research. And, this and other similar organizations have striking implica-
tions not only for the study of so-called "alternative" organizations but also for other
efforts to put some of our most treasured political and social commitments to work.
A humane and democratic workplace is not just a good idea, but it does take a
special kind of collective commitment to make it happen. As an ideal, the
democratic and humane workplace can certainly be a point of reference in making
196
policy, even if it remains unattainable in all its features. Whether exceptional cases,
such as Mondragón, can ever become the rule remains an arguable issue for both
practitioners and theorists. The answer depends in part on how one sees possibili-
ties for doing something "different" within an economic and political landscape
that, despite announced claims to the contrary, seems to insist on conformity.
Alternatively, one might look forward to broader societal transformations, working
within certain local contexts toward that vision. But it is hard to argue that many of
our workplaces today are not terribly people-friendly. So, why not ask simply:
"What would organizations be like if we really created and maintained them for
persons?"
ENDNOTES
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1. This formulation is inspired in part by the humanistic critique of contemporary organizational life
and theory in Robert B. Denhardt (1989). I must note that the underscored definition cannot do justice to
the complexities surrounding the matters of individual and organization and the possible relationships
between the two. For example, from a more collectivist as opposed to a more individualistic perspective,
it is not reasonable to dichotomize the two sets of goals as implied here: individual goals and
organizational ones would be overlapping to such a great extent in the regular operation of the social
system. Further, it can be argued that a higher goal, such as pursuit of the common good, necessarily
brings together concerns for the individual person as well as for the social body. Nevertheless, there is a
danger in subsuming individual rights and responsibilities within even the most noble and progressive
collectivist vision. In fact, there is need for perpetual vigilance with respect to the individual's right to
distance her/himself (and the parallel right of a sub-group to distance itself) in one way or another from a
seemingly restrictive or oppressive majority. (Compare Foucault, 1984, and Westenholz, 1993, on this
point.)
2. See also Schwartzman's (1989) detailed and fascinating interpretive account of what meetings
mean to participants in largely democratic service organizations. Her case analysis reminds us of the
importance of attending to many different types of messages and levels of analysis with respect to
communication in organizations. Moreover, Schwartzman alerts us to how presumably mundane
communication phenomena, such as meetings, may in fact be considered as constitutive of the
organization by its members, especially within a democratic order.
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