like any other job but it's psychological thing where you are working for yourself like you're in business for yourself."

Another remarked that, "I feel it's more of a family now, more homey. It's a pleasure to work here." One manager put it this way:

"I think we're a closer knit family. There's more feeling of ownership among the employees. Naturally, we still have a few employees we still have got to get that word to, that final convincing that they are owners. Overall, it's been a very healthy change."

Another manager pointed out that a problem that might have been considered a managemet problem, "Now it's everyone's problem."

Second, nearly three-quarters of the managers and close to half of the workers felt that morale had improved and that people were more conscientious about their jobs. For example, one manager stated that, "I think the morale is a lot better than it was before-you've got more of a feeling of personal pride among the workers," and another claimed "the interest of the employees is more noteworthy. Everyone is trying a little harder." One worker felt that:

"The guys are more conscientious about their work. They feel they got to put out a much better product now because that's what's going to make more business for us. They do a little better work now than they did before."

A third category of comments, noted somewhat more by the workers than by the managers, concerns benefits and working conditions. For example, one worker was pleased with the new benefits even though he felt that working conditions had not changed appreciably.

"Yes, now workwise it's about the same in our department, but in benefits it's changed a lot. Really good, really good. I've never had it so good. We get raises more often and bonuses; week's pay; we get turkeys at Thanksgiving and things like that we never had before."

Another worker stated, "Well, I think it has changed drastically because [the former owner], we weren't getting what we're getting now. It's a different ballgame now. It's our company and they're treating us good. They give us bonuses; they us extra checks, you know like vacation. They give us a couple of weeks vacation added in. [The former owner] never did that to us. They took all the money and they claimed they weren't making a profit. So far as the employeeowned is, in my opinion, I like it."

Reduction in waste and absenteeism were mentioned specifically by a number of respondents. For example, one worker said, "Everybody is not so willing to throw a part away anymore which was one of the first signs they cared about the company. Scrap is held to a minimum. A ten minute break is not a 15 minute break where it used to be a half hour or 45 minute break. They're a little more conscious of a lot of small things."

Another person proclaimed, "My particular job is taking care of the scrap and since this last year I noticed the scrap off the machines I picked up as a lesser amount than previously."

A fifth category concerns the future of the company, which according to several workers and managers looks promising. As one worker put it, "There's much more confidence in the future. This is one of main things we have today that we didn't have before."

Finally, a small number of respondents mentioned that employees had more of a voice in the company, and a few indicated that some workers were still suspicious or the communications were not good. Negative comments of this kind

were rare.

TABLE 1.—QUESTION: HAVE THINGS CHANGED AT THE COMPANY SINCE THE EMPLOYEE STOCK OWNERSHIP PLAN HAS BEEN INTRODUCED... ARE THEY BETTER, WORSE, OR ABOUT THE SAME AS BEFORE?

Managers and workers were asked about the attitude of management toward employees. Nearly three-quarters of the managers interviewed and about half of the workers felt that the attitude of management had changed for the better. About one-fifth of the managers and nearly half of the workers felt that no change had occurred, and small percentages of both groups felt that managerial attitudes were better in some ways but worse in others. None of the respondents felt that attitudes were worse. (Table 3.)

Change in the attitudes of management reported by respondents fall into several categories (Table 4). A fairly high proportion of both groups (64 percent of the managers and 43 percent of the workers) felt that workers were treated better by managers and more like owners and that communication was better. Thus, one worker felt that management was more considerate of him and described some of the consequences of this:

"They listen to our problems more readily. The people on the floor have to work with certain problems all day, week in and week out, year in and year out, and management is beginning to realize that and starting to listen to us where they didn't before, and it's good employee-employer relationships because if you know someone will listen to your problems, you feel more like a human and when you take the dehumanization out of the job, there's more productivity, you're more responsible, you're more willing to work more overtime, and less tension, and it's a pretty good deal all around."

TABLE 3.-QUESTION: HAS THE ATTITUDE OF MANAGERS TOWARD EMPLOYEES CHANGED... FOR BETTER OR FOR WORSE?

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TABLE 4.-QUESTION: IN WHAT WAY HAS ATTITUDE OF MANAGERS TOWARD EMPLOYEES CHANGED? [In percent]

Better communications; workers treated as owners; more consideration;
we work better together; more cooperation...
Workers have more of a voice in decision making; management doesn't
give "orders" anymore; management goes to workers for ideas.
Management has given worker better benefits, working conditions, and
equipment..

No change: we've always gotten along; it was always good and still is.
No change: management has not improved in attitudes toward workers;
management is management and workers are workers; the hierarchy
is still the same...

Management is tighter/stricter around the shop.

Workers can be too assertive.

See footnote, table 2.

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to say because they've always been nice and cared about the employees. . . . The other group made comments suggesting that the old hierarchy was still there and that management was management and labor was labor. One worker expressed his dismay with this, stating:

"No, I don't believe so, it's still the same. That's one thing that disappoints me. Because there seems to be still that dividing line where I don't think it should be. Well, it should be to an extent, but not the same as it was. Well, like they're still working for the conglomerate, and we're still more or less union." On the negative side, one manager suggested that workers were getting too assertive and one worker complained that managers were stricter around the shop and wouldn't give him everything he wanted anymore.

Attitude of employees toward management

Respondents were invited to comment about changes in the attitude of employees toward management. A majority of both groups felt that employee attitudes had improved. (Table 5.)

Table 6 provides a categorization of the changes indicated by respondents. 45 percent of workers and managers felt that working relationships between the two groups were improved in that better communication, more confidence and respect for managers and improved teamwork prevailed. One worker stated: "The attitude of employees toward management now is not so negative, not so resentful of the authority they have. They figure whatever they're doing is for our success as a whole rather than money in the pockets of the higher-ups." Another worker commented, "They think we're more human, at least to do the right thing . . . we feel like we're partners now and want to keep it that way." One manager saw a change in employee attitudes in this way:

"Morally speaking or philosophically, they realize that we can all see we're working together and the distinction between the two-i.e., "they're the bad guys and we're the good guys'-that's been changing."

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TABLE 5.-QUESTION: HAS THE ATTITUDE OF EMPLOYEES TOWARD MANAGEMENT CHANGED FOR BETTER OR FOR WORSE?

TABLE 6.-QUESTION: IN WHAT WAYS HAS THE ATTITUDE OF EMPLOYEES TOWARD MANAGEMENT CHANGED? [In percent]

Another manager stated: "We seem like we're working more as a team, where before it was always union and management, now it's almost like all owners. It's all teamwork, and I notice that people go over and help each other now where in the old days they used to say, 'hey, find somebody to help that guy.' Now, a man has a problem, three or four fellows come over and help him."

Another group of respondents (18 percent of the managers and 8 percent of the workers) felt that workers were taking on increased responsibilities or that management was more conscientious. One manager proclaimed that, “They're willing to accept some of our problems, and they're trying to help solve these problems before they even come to us." A worker remarked, "Oh yeah. They're trying to make the product better so they can sell it. Before it was like [the conglomerate] was in charge."

Some of those who felt that employees' attitudes toward management had remained the same or worsened expressed the opinion that workers were suspicious of management or that workers felt that management would come out with most of the shares. One manager elaborated upon this problem, stating: "... there is the suspicion of empire building. The prime thing is the way the shares are being divided by salary and they have the idea that the higher positions and management will come out with the majority of the shares. We've proved that management will come out with 33 percent and that the union will come out with 66 percent, but it's very difficult to convince these guys and they're still very suspicious. But I think this will change-you will change them when they receive two or three bonuses, etc., i.e., something they've never had before."

A worker confirmed this manager's opinion, stating, "Well, some of them think that management gets a little better deal out of ESOP than they are. They're thinking moneywise to theirself. They figure that because management makes better wages, they're gonna get a big cut out of the share, I guess."

Other causes for suspicion included the union problem and the fact that many workers lost their pension when the ownership changed from conglomerate to workers. This was especially problematic for some senior employees who had accumulated substantial equity in the pension plan under the former owners, but who did not have quite enough seniority to claim their pension rights at the time of the transfer of ownership-but they would have lost those rights in any case had the company been liquidated. One worker described some of these problems:

"It's still a little bit suspicious. They don't know how far management will go. We still have a union problem here and we don't know how it will go. These older persons who lost out on the pension are in bad shape. We don't know how that is going to go."

Attitude of employees toward their work

When asked whether employees' attitudes toward their work had changed most respondents, workers and managers alike, reported an improvement. (Table 7.) A high percentage of both groups (36 percent of the managers and 50 percent of the workers) mentioned that workers were interested in their jobs because they felt they were working for themselves or that company success was a

result of their efforts (Table 8). Thus, one manager claimed, "They feel a little bit more responsibility for quality workmanship, being it is their own company." Another manager described how reward depends on performance, stating:

"We know what we sell it [the product] for, and we can say, 'okay, fellows, every time one of those go out it's $8,000 profit,' and you're back to dollars again and you're talking language they can understand and by doing this, you can get a little more enthusiasm out of the guys."

Some of the workers made similar comments. Regarding the feeling of ownership, one stated, "I seem to think I want to get it out better than I did because I know it's for me." And another remarked, "I think we're getting a little better work out of people now. Now we got something to work for. Before we were working for a company. Now we're working for ourselves."

In the same fashion, another claimed, "Well, now everybody is more or less in making money for themselves. It's their work, not just the company's. Before the money was going into somebody else's pocket. Now it's our own."

TABLE 7.-QUESTION: HAS THE ATTITUDE OF EMPLOYEES TOWARD THEIR WORK CHANGED. . . FOR BETTER OR

TABLE 8.-QUESTION: IN WHAT WAYS HAS THE ATTITUDE OF EMPLOYEES TOWARD THEIR WORK CHANGED?

About a quarter of the managers and a third of the workers mentioned that employees were more conscientious and were putting in a greater effort. One manager stated that "They're more conscientious in what they do and how they perform." The workers expressed much the same opinion with one stating, “There isn't as much goofing off as there used to be" and another commenting, "As far as I can see, I'd say I know my attitude has changed. I feel more conscientious about my job and I want to do my job to the best of my ability. I can't really speak for a whole lot of other people but the ones I talk to seem to be more conscientious about their jobs. I'd say yes, their attitudes have changed for the better."

About one-third of the managers and one-fourth of the workers felt that this extra effort was paying off in terms of better quality of work and decreased waste. One manager replied, "The large percentage of the employees are more cost conscious, more scrap conscious, and are trying harder not to run scrap and still maintain a high level of earnings."