DISSERTATION REPORT ON

EMPLOYEE INVOLVEMENT OR PARTICIPATION AND ITS EFFECT ON FIRM AND WORKERS AT BHEL

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION MBA (2010-2012) TO UTTARAKHAND TECHNICAL UNIVERSITY

UTTARANCHAL INSTITUTE OF BUSINESS STUDIES, DEHRADUN

SUBMITTED TO: MS. RICHA KHUGSHAL

SUBMITTED BY: ANKITA MEHTA MBA-IV (UIBS-D)

UIBS-D

CERTIFICATE

I have the pleasure in certifying that Ms.Ankita Mehta is a bonafide student of fourth 4TH semester of the Masters Degree in Business Administration of Uttaranchal Institute of Business Studies, Dehradun. . she has completed her dissertation work entitled EMPLOYEE INVOLVEMENT AND ITS EFFECT ON FIRM AND WORKERS AT BHEL under my guidance. This project fulfils the requirement of the curriculum prescribed by Uttarakhand Technical University, Dehradun for the said course.

Signature: Name of the Guide: Ms.Richa Khugshal Date: .

DECLARATION

I declare that the Dissertation Report EMPLOYEE INVOLVEMENT AND ITS EFFECT ON FIRM AND WORKERS AT BHEL is a record of independent research work carried out by me during the academic year 2010-12 under the guidance of my faculty guide Ms. Richa Khugshal of Uttaranchal Institute of Management. I also declare that this dissertation is the result of my effort and has not been submitted to any other University or Institution for the award of any degree, or personal favour whatsoever. All the details and analysis provided in the report hold true to the best of my knowledge.

Ankita Mehta

ACKNOWLEDGEMENT
I express my deepest sense of gratitude to GOD almighty for the abundant blessing without which the study would have never been light of the day. I hereby acknowledge my sincere gratitude to the U.K.TECH University and the Management for giving me an opportunity to undergo MBA Degree Course and to undertake this project work successfully. I wish to express my deep sense of thanks to my mentor Ms.Richa Kugshal I owe my reverential gratitude faculty guide Ms. Richa Kugshal for her valuable guidance and suggestions rendered at each stage of the project. Last, but not Least I would like to acknowledge the wholehearted support of my parents, faculties, and friends who helped me at various stages in completing this work successfully.

Ankita Mehta

PREFACE
This Research is a part of my dissertation report is an integral part of every M.B.A course. We cant rely merely upon theoretical knowledge. It is to be complemented by practical know how for it to be fruitful. A positive and correct result of the classroom learning needs realities of practical situation. The report submission enables the management students to themselves work in research by them own for getting benefit in the future. It gives them real feel of research work, which helps them to better equip themselves with the required skills. I got the opportunity to complete research work on EMPLOYEE INVOLVEMENT AND ITS EFFECT ON FIRM AND WORKERS AT BHEL In particular I was lucky enough to be part of study and I was assigned to do some research regarding the strategy formulation for marketing of the product/services of the institute. It has been a great learning experience for me. The study would not have been possible without the unconditional guidance and support of my guide.

INDEX

1. INTRODUCTION..7 2. OBJECTIVE OF THE STUDY15 3. COMPANY PROFILE.16 4. REVIEW OF LITERATURE..20 5. RESEARCH METHODOLOGY35 6. ANALYSIS55 7. LIMITATIONS....59 8. FINDINGS.60 9. RECOMMENDATION.62 10. CONCLUSION..64 11. BIBLIOGRAPHY..65 12. ANNEXURE..66

INTRODUCTION
When an organization truly wants to create a positive work environment that is based on high trust, exceptional customer service, collaborative teamwork, operational excellence, and creative problem solving, then the leadership team must begin to understand, invest in, and be responsive to the needs of the group that represents the organizations most valuable assets, and is also one of its most important customers, the employees. The return on such nominal investments will come in the form of higher levels of employee motivation, creativity, productivity, and commitment that will move the organization forward with greater profitability. A fundamental Total Quality Management precept is that employees must be involved and empowered. Employee involvement means that every employee is regarded as a unique human being, not just a cog in a machine, and each employee is involved in helping the organization meet its goals. Each employees input is solicited and valued by his/her management. Employees and management recognize that each employee is involved in running the business.

What is employee involvement? Employee involvement is a process for empowering employees to participate in managerial decision-making and improvement activities appropriate to their levels in the organization. Since McGregors Theory Y first brought to managers the idea of a participative management style, employee involvement has taken many forms, including the job design approaches and special activities such as quality of work life (QWL) programs. There is at the end of the day only one thing that differentiates one company from another its people. Not the product, not service establishments, not the process, not secret ingredients; ultimately any of these can be duplicated. The Japanese have always recognized this and it is one of the reasons for their success in world markets they place tremendous value on the integration of people with organizational objectives, equipment and processes. The employees force the organizations to address three key issues; communication, involvement and development. In fact the three issues can be used as a measure of an organizations maturity in the employment relationship. Here, we are going to address the issue of involvement and its relationships. Many people confuse communication systems such as team briefings with involvement. Involvement, however is more than just the

exchange of information. It is the gradual but radical delegation of control to those closest to the process itself. Self-managed teams, cell-based manufacture, autonomous work groups, high performance work systems, are all examples of true involvement EMPLOYEE INVOLVEMENT OR WORKERS PARTICIPATION IN MANAGEMENT

INTRODUCTION The word participation means sharing the decision-making power with the lower ranks of the organization in an appropriate manner. Participation has a unique motivational power and a great psychological value. It promotes harmony and peace between workers and management. When workers participate in organizational decisions, they are able to see the big picture clearly, i.e., how their actions would contribute to overall growth of the company. They can offer feedback immediately based on their experiences and improve the quality of decisions significantly. Since they are involved in the decisions from the beginning, they tend to view the decisions as their own and try to translate the rhetoric into concrete action plans with zeal and enthusiasm. Participation makes them more responsible. They are willing to take initiative and contribute cost-saving suggestions and growth-oriented ideas. The feeling of being treated as equals, forces them to repose their confidence in management and accept plans of rationalization, expansion, etc., without raising serious objections. Since they are treated with respect now they begin to view the job and the organization as their own and commit themselves to organizational activities wholeheartedly. Output cannot be increased unless there is effective co-operation between labour and management at all levels. The way of ensuring this is to satisfy their social and psychological need besides economic ones. Workers participation in management is one of the most significant modes of resolving industrial conflicts and encouraging among workers a sense of belongingness in establishment where they work. Moreover, India which has launched a vast programme of industrialization, the need for workers participation is all the more important. It is in reorganization of these need that under the Second, Third, Fifth and Seventh plans specific measures have been suggested for workers participation. The scheme of Joint Management Council, popularly known as Workers participation in management, was introduced on voluntary basis only after over a decade. However, the scheme of Joint Management Council for various reasons could not succeed. In order to

meet this unhappy state of affairs and to secure greater measure of co-operation between labour and management to increase efficiency in public service, the Government of India on October 30, 1975 introduced a scheme of workers participation in management at shop floor and plant levels. In addition to these, there are voluntary schemes of making the workers shareholders and Directors in the Board of Management. The inclusion of the concept of workers participation in management in the Directive Principles of State Policy through the Constitution (Forty-second) Amendment Act, 1976, gave a momentum to the institution of workers participation in management. After the constitutional Amendment the Central Government expressed its intention to amend the 1975-Scheme and to provide for effective participation of workers in production processes and accordingly amended the scheme in January 1977. There are two distinct groups of people in an undertaking, viz,managers and workers performing respectively two separate sets of functions which are known as managerial and operative. Managerial functions are primarily concerned with planning, organizing, motivating and controlling in contrast with operative work. A self-employed man may carry out both these functions if the area of his operations is very small. But in case of big organizations, these functions are to be performed by different sets of people. Workers participation in management seeks to bridge this gap authorizing workers to take part in managerial process. Actually, this is a very wide view of the term workers participation in management and this is not practically possible. Participation may take two forms. It may be: (1) ascending participation, and (2) descending participation. In case of ascending participation, the workers may be given an opportunity to influence managerial decisions at higher levels through their elected representatives to joint councils or the board of directors of the company. But in descending participation, they may be given more powers to plan and to make decisions about their own work (e.g. delegation and job enlargement). This form of participation is quite popular in many organizations.

Implications of workers participation in management The implications of workers participation in management have been summarized by the International Labour Organization thus: 1. Workers have ideas which can be useful.

2. Upward communication facilitates sound decision-making. Workers may accept decisions better if they participate in them. 3. Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere. 4. Workers may work harder if they share in decisions that affect them. 5. Workers participation may foster a more cooperative attitude amongst workers and management thus raising efficiency by improving team spirit and reducing the loss of efficiency arising from industrial disputes. 6. Workers participation may act as a spur to managerial efficiency.

DEFINITIONS The concept workers participation in management (WPM) is a broad and complex one. Depending on the socio-political environment and cultural conditions, the scope and contents of participation may change. In any case, a common thread running through all interpretations is the idea of associating employees in managerial decision-making. The view expressed by the International Institute for Labour Studies (Bulletin 5) is worth quoting here. WPM has been defined as, the participation resulting from practices which increase the scope for employees share of influence in decision-making at different tiers of organizational hierarchy with concomitant assumption of responsibility. The concept of workers participation in management crystallizes the concept of Industrial Democracy, and indicates an attempt on the part of an employer to build his employees into a team which work towards the realization of a common objective1. According to Davis, it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them2. Workers participation in management is a resounding phrase, bridging the past and the future. It echoes the millennial vision of nineteenth century thinkers while heralding the

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evolution of new forms of industrial organization under twentieth century pressures. The word workers participation is plentifully supplied with ideas, institutions and opinions. Mamoria defines it as a system of communication and consultation either formal or informal by which employees of an organization are kept informed about the affairs of the undertaking and through which they express their opinion and contribute to management decisions4. The International Institute of Labour Studies remarks: The participation results from practices which increase the scope for employees share of influence in decision-making at different tiers of the organizational hierarchy with concomitant assumptions of responsibility5. This becomes meaningful only in such a situation. Here it is quite evident that the participation of each should strictly confine to the field for which he is competent and concerned with. Everybody poking his nose into everything is, therefore, not participation, but proliferation. This must have been the reason why a group of practising managers defined: workers participation in management is involvement of workers only in such areas of activities of the enterprises where they can make some positive contribution for the betterment of the enterprise.6 Such participation should facilitate effective utilization of available resources and effective execution of long-term expansion plans, including diversification. It should facilitate the day-to-day functioning as well as inventions and innovations. NEED OF WORKERS PARTICIPATION Workers participation in management has assumed great importance these days because of the following advantages: 1. Reduced industrial unrest: Industrial conflict is a struggle between two organized groups which are motivated by the belief that their respective interests are endangered by the self-interested behaviour of the other. Participation cuts at this very root of industrial conflict. It tries to remove or at least minimize the diverse and conflicting interests between the parties, by substituting in their place, cooperation, homogeneity of objects

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and common interests. Both sides are integrated and decisions arrived at becomes ours rather than theirs. 2. Reduced misunderstanding: Participation helps dispelling employees misunderstanding about the outlook of management in industry. 3. Increased organization balance: If worker are invited to share in organizational problems, and to work towards common solutions, a greater degree of organizational balance occurs because of decreased misunderstanding of individual and group conflict. Participation leads to increased understanding throughout the organization. People learn that others have problems beside themselves. 4. Higher productivity: Increased productivity is possible only when there exists fullest co-operation between labour and management. It has been empirically tested that poor labour management relations do not encourage the workers to contribute anything more than the minimum desirable to retain their jobs. Thus, participation of workers in management is essential to increase industrial productivity. 5. Increased Commitment: An important prerequisite for forging greater commitment is the individuals involvement and opportunity to express himself. Participation allows individuals to express themselves at the work place rather than being absorbed into a complex system of rules, procedures and systems. If an individual knows that he can express his opinion and ideas, a personal sense of gratification and involvement takes place within him. This, in turn, fortifies his identification with the organization resulting in greater commitment. 6. Industrial democracy: Participation helps to usher in an era of democracy in industry. It is based on the principle of recognition of the human factor. It tends to reduce class conflict between capital and labour. It also serves as a support to political democracy. 7. Development of Individuals: Participation enhances individual creativity and response to job challenges. Individuals are given an opportunity to

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direct their initiative and creativity towards the objectives of the group. This facilitates individual growth. 8. Less resistance to change: when changes are arbitrarily introduced from above without explanation, subordinates tend to feel insecure and take counter measures aimed at sabotage of innovations. But when they have participated in the decision making process, they have had an opportunity to be heard. They know what to expect and why. Their resistance to change is reduced. OBJECTIVES OF WPM The main objectives of workers participation in management include: i. To promote increased productivity for the advantage of the organization, workers and society at large; ii. To provide a better understanding to employees about their role and place in the process of attainment of organizational goals; iii. To satisfy the workers social and esteem needs; and iv. To strengthen labour management co-operation and thus maintaining industrial peace and harmony. v. To develop social education for effective solidarity among the working community and for tapping latent human resources. vi. An ideological point of view to develop self-management in industry. vii. An instrument for improving efficiency of the company and establishing harmonious industrial relations. viii. To build the most dynamic human resource. ix. To build the nation through entrepreneurship and economic development.

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x. To improve the quality of working life by allowing the workers greater influence and involvement in work and the satisfaction obtained from work. xi. Development of human personality xii. Development of leader from within the industry. xiii. Development of working class. xiv. Creation of a just egalitarian society. xv. Facilitate self-development of worker.

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OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

SECONDARY OBJECTIVE

To provide valuable suggestions to the company.

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COMPANY PROFILE

BHEL was founded in 1950s. Bharat Heavy Electricals Limited-BHEL, has today emerged as the largest engineering and manufacturing enterprise of its kind in India and ranks amongst the top ten power generation equipment manufacturers in the world.With a massive network of 14 manufacturing Units located at various important centres all over India , BHEL manufactures almost all critical high technology products required for power sector like Gas Turbines, Steam Turbines, Turbogenerators, Boilers, Pumps and Heat exchangers, Pulverisers and electrical switch gears. BHEL is one of the largest exporters of engineering products & services from India. BHEL has established its references in around 60 countries of the world, ranging from the United States in the West to New Zealand in the Far East. Its export range include: individual products to complete power stations, turnkey contracts for power plants, EPC contracts, HV/EHV Sub-stations, O&M services for familiar technologies, specialized after-market services like Residual Life Assessment (RLA) studies and retrofitting, refurbishing & overhauling, and supplies to manufacturers & EPC contractors. BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.The company recorded revenues of INR2,160,800 million (approximately $53,674.3 million) in the fiscal year ended March 2007, an increase of 15.3% over 2006. Its net profit was INR281,500 million (approximately $6,992.5 million) in fiscal year 2007, an increase of 16.6% over 2006.

VISION A World-class Engineering Enterprise Committed to enhancing Stakeholder Value.

MISSION To be an Indian Multinational Engineering Enterprise providing Total Business Solutions through Quality Products, Systems and Services in the fields of Energy, Industry, Transportation, Infrastructure and other potential areas.

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The greatest strength of BHEL is its highly skilled and committed 43,636 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness. They are an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India in terms of turnover. They were established in 1964, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77 They are engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defence. They have 15 manufacturing divisions, two repair units, four regional offices, eight service centers and 15 regional centers and currently operate at more than 150 project sites across India and abroad. We place strong emphasis on innovation and creative development of new technologies. Our research and development (R&D) efforts are aimed not only at improving the performance and efficiency of our existing products, but also at using state-of-the-art technologies and processes to develop new products. This enables us to have a strong customer orientation, to be sensitive to their needs and respond quickly to the changes in the market. The high level of quality & reliability of our products is due to adherence to international standards by acquiring and adapting some of the best technologies from leading companies in the world including General Electric Company, Alstom SA, Siemens AG and Mitsubishi Heavy Industries Ltd., together with technologies developed in our own R&D centers. Most of our manufacturing units and other entities have been accredited to Quality Management Systems (ISO 9001:2008), Environmental Management Systems (ISO 14001:2004) and Occupational Health & Safety Management Systems (OHSAS 18001:2007). We have a share of 62% in India's total installed generating capacity contributing 72% (approx.) to the total power generated from utility sets (excluding non-conventional capacity) as of March 31, 2011. We have been exporting our power and industry segment products and services for approximately 40 years. We have exported our products and services to more than 70 countries. We had cumulatively installed capacity of over 8,500
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MW outside of India in 21 countries, including Malaysia, Iraq, the UAE, Egypt and New Zealand. Our physical exports range from turnkey projects to after sales services. We work with a vision of becoming a world-class engineering enterprise, committed to enhancing stakeholder value. Our greatest strength is our highly skilled and committed workforce of 46,748 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management - all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

1.1 About BHEL: Bharat Heavy Electricals Limited (BHEL) (www.bhel.com) is a premier engineering and manufacturing organization with majority share holding by Govt. of India. BHEL offers a wide spectrum of products and services to the core infrastructure sectors of Indian economy viz.Power Generation, Transmission, Industry, Transportation and Renewable Energy. BHEL has been in this business for more than five decades now. In India, BHEL has 14 manufacturing units, 4 power sector regions, 8 service centers and 15 regional offices besides host of project sites spread all over India and abroad. BHEL-supplied equipments account for more than 65% of the total installed generating capacity in India and contribute approximately to 73% of the total power generation in the country. More details about BHEL and the products and services can be found at the website.

1.2 About Electronics Division unit of BHEL: Electronics Division (EDN) (www.bheledn.com) unit of BHEL was formed in 1976 at Bangalore,mainly to establish a strong base in the areas of Automation and Power Electronics to supplement the Companys pioneering efforts in the above mentioned core sectors. Most of the power plants and industries in the country today are equipped with electronics products and systems that have been manufactured and supplied by BHEL EDN. We also have a good international reference by way of our exports to European, Middle-East and South-East Asian markets. EDN has been accredited with ISO 9001, ISO 14001 and OHSAS 18001 standard certifications.

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1.3 BHELs Experience in Semiconductor Devices: Since 1978, BHEL has been in the field of manufacture of discrete power semiconductor diodes and thyristors. The ratings of diode manufactured by BHEL, at the Electronics Division unit of Bangalore, are in the range of 250-2000A / 1400-4400V. The ratings of phase control thyristor manufactured by BHEL are in the range of 150-3300A and 14007000V. BHEL has been supplying these diodes and thyristors to various domestic and export market segments such as traction locomotives, variable frequency drives, highcurrent rectifiers, high-voltage DC transmission stations, static excitations systems, brushless exciters in turbo-generators and alternators and high-frequency inverters. National HVDC, Rihand-Delhi and Chandrapur-Padghe HVDC line projects in India, 3100HP and 4000HP Diesel-Electric locomotives of Indian Railways and Exciters of 250MW and 500MW Turbo-generators for power stations are some of the major contracts in which BHEL devices are used.BHEL has acquired technology from M/s Siemens, Germany and M/s ABB, Switzerland for these products in 1978 and 1986 respectively. Subsequently, BHEL has developed and manufactured custom-specific diodes, thyristors and heat-sink assemblies against specific requirements, based on experience and technical expertise. Cumulatively, BHEL has manufactured and supplied more than 3.5 Lakhs of semiconductor devices. More details of semiconductor products can be found at www.bheledn.com. Sample photographs of various devices and heat-sink assemblies are provided in Enclosure 1.

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LITERATURE REVIEW

Juliette summers (university of stirling) and jeff hyman (university of Aberdeen) worked together on employee participation and company performance for joseph rowntree foundation.

A literature review looking at the links between employee participation, company performance and the quality of working life. This report assesses existing research evidence on links between employee participation in organisational decision making, company performance and the quality of working life. The intention is to examine the value of different approaches to participation to employees, employers and the State. The report examines the different rationales for participation from economic, social justice and political perspectives. Through these perspectives, it identifies different approaches to the subject, with employers and neo-liberal interests broadly supporting individual and low influence approaches while employee bodies, such as trade unions and the European Union collective, favour more regulatory influences. The impact of new forms of participation, including high-involvement work systems and partnership, is also considered. Links between participation and equality at work, an element which is often overlooked in accounts of the subject, are also considered from perspectives of gender, work-life balance, age and disability. Finally, the report considers the policy implications and limitations of different approaches and suggests areas where policy developments could be undertaken. The report confirms that participation continues to be a contested area. It also suggests, however, that trade unions continue to have an important role in protecting and advancing the interests of employees and, in so doing, can contribute positively to organisational effectiveness.

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Derek c jones and takao kato (William Davidson institute) worked on the effects of employee involvement on firms performance. They had given the abstract of their work as follows:

We provide some of the most reliable evidence to date on the direct impact of employee involvement through participatory arrangements such as teams on business performance. The data we use are extraordinary --daily data for rejection, production and downtime rates for all operators in a single plant during a 35 month period, more than 77,000 observations. Our keyfindings are that: (i) membership in offline teams initially enhances individual productivity by about 3% and rejection rates by about 27%; (ii) these improvements are dissipated, typically at a rate of 10 to 16% per 100 days in team; (iii) the introduction of teams is initially accompanied by increased rates of downtime and these costs diminish over time. In addition: (iv) the performance-enhancing effects of team membership are generally greater and more long-lasting for team members who are solicited by management to join teams whereas the cost of team membership (increased downtime) is smaller and diminishes more rapidly as team members engage in learning by doing for such solicited members; similar relationships exist for more educated team members. These findings are consistent with the diverse hypotheses including propositions that: (i) employee involvement will produce improved enterprise performance through diverse channels including enhanced discretionary effort by employees; (ii) the introduction of high performance workplace practices are best viewed as investments, though there are significant learning effects; (iii) differences in performance for team members solicited by mangers compared to those who volunteer are consistent with various hypotheses including management signaling and opportunistic behavior by employees, but inconsistent with hypotheses based on Hawthorne effects; and (iv) various kinds of complementarities accompany many changes in organizational design (such as between teams and formal education).

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KOMAL KHALID BHATTI AND TAHIR MASOOD QURESHI, Business Administration Department,Mohammad Ali Jinnah university,Islamabad Pakistan worked on impact of EMPLOYEE PARTICIPATION ON JOB SATISFACTION,EMPLOYEE COMMITMENT AND EMPLOYEE PRODUCTIVITY.

It is widely believed that the employee participation may affect employees job satisfaction; employee productivity, employee commitment and they all can create comparative advantage for the organization. The main intention of this study was to find out relationship among employee participation, job satisfaction, employee productivity and employee commitment. For the matter 34 organizations from Oil & Gas, Banking and Telecommunication sectors were contacted, of which 15 responded back. The findings of this study are that employee participation not only an important determinant of job satisfaction components. Increasing employee participation will have a positive effect on employees job satisfaction, employee commitment and employee productivity. Naturally increasing employee participation is a long term process, which demands both attention from management side and initiative from the employee side. YUSUF NOAH,DEPARTMENT OF SOCIOLOGY,UNIVERSITY OF ILORIN,NIGERIA worked on A STUDY OF WORKER PARTICIPATION IN MANAGEMENT DECISION MAKING WITHIN SELECTED ESTABLISHMENTS IN LAGOS, NIGERIA. AB S TRACT: Thi s paper is concerned with an investigation of the existing level of worker participation inmanagement decision making within the Nigerian work environment. The study involved a survey in which a total of two hundred and twenty seven (217) non management employees drawn from two work organizations in Lagos (Flour Mills Nigeria Plc and Niger Insurance Plc) were used as subjects. Interview schedule and in-depth interview were the main research techniques adopted for data collection while percentage distribution and chisquare statistical techniques were used to analyze the data collected for the study. Results show that employees in both organizations demonstrate a high interest in participation in the decision making process

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within their respective work places. However, the actual level of involvement in management decision making demonstrated by the employees was found to be relatively low. There is significant relationship between education and employees involvement in decision making at Flour Mills Nigeria Plc. In Niger Insurance Plc, there is a significant relationship between age and employees involvement in decision making as well as between frequency of employees consultation and organizational commitment. The study reveals a growing desire of non-management employees in the Nigerian work environment to exercise greater involvement in the decision making process of their enterprises.

Employee participation and company performance: The effects of participation schemes vary with the environment into which they are introduced. An insecure workplace environment may induce employees' compliance with participation measures, but may not achieve the commitment needed for attitude changes. Links between participation and attitude change appear to depend on the degree of influence granted to employees under participation measures. Low degrees of perceived influence are unlikely to produce positive results. However, middle management appears to resist participation initiatives which are perceived as reducing their influence or authority, thus posing an obstacle to the success of participation programmes. A combination of financial and work-related participatory measures can have a positive impact on company performance as employees do not all react to participation initiatives in the same manner. Some respond well to financial initiatives and others to more workrelated elements. Assumptions that participation measures affect all employees identically, regardless of gender, race, age and contractual status, can amplify social disadvantage. Disadvantaged groups, such as older workers, disabled people and those with caring commitments, may have only a restricted voice at work. In terms of the work-life balance and family-friendly working, employees' voices remain muted. They tend to have a weak collective voice in larger organizations, whereas in some smaller firms individuals can sometimes negotiate flexible working arrangements. The researchers conclude that a combination of participation and welfare measures (such as equal opportunities and family-friendly policies) appears to enhance organizational

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performance and the quality of working life. Policy support should focus on union recognition and activity within a human rights framework, since this can positively influence employees' behavior towards organizational goals.

BACKGROUND Economic changes in recent decades have required employers to seek more efficient and flexible means of production. Deregulation and privatization have also significantly altered the UK's industrial relations climate, with a decline in trade unions' influence and membership. Mirroring this has been the growth in 'new' forms of work-related participation by employees, under the banner of human resource management and associated programmes and strategies for partnership and high commitment. Governments must balance the needs of a competitive economy with the welfare of their citizens. A change in political climate has seen social partnership currently being promoted by all interested parties. Reflecting this change, the inclusion of trade unions in government consultation exercises is significant. Against this background, the three main rationales for introducing employee participation are based upon different economic, social and political assumptions: Economic - changes in employees' attitudes and behavior are achieved through financial participation, by offering employees a stake in the firm. Employees' association with management values and goals is thereby increased, and they are more motivated and committed to achieving those goals. Social - by catering for employees' social needs, through improved job security and satisfaction and quality of working life, higher performance is achieved. Alternatively, satisfying social needs can be treated as an end in itself. Governmental - current UK policy is to improve national economic efficiency while also improving the experience of work for employees. This study formed part of the Joseph Rowntree Foundation's Work and Opportunity programme. The researchers reviewed the literature on employee participation.

Does participation work? Not all the literature agrees on the universal, positive effects of participation. Some suggests that participation may have no effect or even negative effects on performance. However, it is difficult to discern a definitive pattern. Lack of consistency in the outcomes
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of participatory measures suggests that schemes are not isolated from the effects of the external economic, political and social environment.

Attitude change Participatory measures such as team working and high-involvement work practices demonstrate improvements in performance, but can also have less positive outcomes for employee and social well-being. Performance changes may occur because participation leads to changed attitudes which lead to higher performance. Alternately, changes to behavior and performance may be achieved not through attitude changes but through fear and an insecure or intensified work environment. One explanation for these contradictory results is that participation schemes are sometimes introduced as part of restructuring packages. When employees are faced with an insecure environment, participation may induce compliance and not the attitude changes necessary for employees' commitment to the enterprise. If this is so, behavioral changes may not be of the order anticipated. The degree of influence accorded to employees is also important. Low levels of participation with little employee autonomy have been identified as a reason for disappointing results. Where employees' expectations have been raised by introducing participation, but there is little real improvement in employee influence, workers may express resentment and dissatisfaction. Where participation is only from the top down, workers may feel that they are being lectured and not listened to. Even where participation is from the bottom up, workers may feel that management is using their ideas, with no return seen by employees. High levels of participation also have their own problems. Some authors claim that employees do not make hard decisions, opting for outcomes that maximize income, not profit. Others claim that employees are not able to discipline co-workers, and that decision-making takes too long. From the management perspective, high degrees of employee influence may mean that managers' input in decision-making is reduced. Whether from concern that their authority is being compromised or through dilution of the decision-making process, this may result in reduced competitiveness. Participation can also be categorized as individual versus collective. Individualized forms of participation may clash with existing collective arrangements and fail to induce a harmonious climate. Concerns have also been expressed over individualized financial participation, and a fall in share prices could make it harder to attract high-quality staff. Collective participation, on the other hand, can work with existing labour-relations channels and attitudes in a productive way. The role of trade unions therefore continues to be significant.

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However, collective participation is no guarantee of positive attitude change. Management also has to accept the ethos of participation, and middle and supervisory management is a particularly difficult group to influence.

Combining participation measures The potential for positive impact on performance seems to arise when participation measures are used in combination, either as financial and work-related participation, or as representative and direct participation. Either combination may act upon employee perceptions, encouraging high-trust relations within the workplace and allowing employees with different motivations to enjoy the benefits of participation. Employees are not a homogeneous group responding identically to participation initiatives. Different employees have different motivations: some respond to financial incentives and others to more social or work-related ones. This is why a combination of financial and workrelated participation appears to have a positive effect on performance.

Transferability A further issue is the transferability of participation schemes, particularly between large and small firms. It is uncertain whether participation schemes suitable for large firms will have positive effects in smaller companies, or whether participation measures can be transferred between industrial sectors and even between different national conditions. For example, the success of Japanese profit-sharing and other involvement techniques has been accounted for by Japan's unique culture, which emphasizes mutual obligations by employee and employer.

Workplace equality Questions arise concerning the benefits of participation measures to workplace equality. Work-related participation can place a premium on social factors such as ability to communicate and the time available to commit to participation. Participation can therefore amplify social advantage and, by the same token, social disadvantage; for example, caring responsibilities may mean that some employees have relatively less time to attend meetings. In addition, some schemes may be based upon questionable assumptions about employees - for example, that women are sometimes less committed to work and perhaps less willing
26

to participate. However, a number of studies have refuted this assumption. Other potentially excluded groups also suffer from amplified disadvantage, including ethnic minorities, single parents, agency workers and temporary workers, with possibly limiting effects on their capacity and opportunity for participation.

Discrimination Less advantaged groups and individuals, such as older workers, ethnic minorities and disabled people, may have a restricted 'voice' within the workplace. Coupled with greater employment insecurity, this can permeate workers' performance through frustration and impotence, with a negative impact on both organizational performance and quality of working life. The evidence indicates that participation schemes in tandem with welfare measures - such as equal opportunities and family-friendly policies - improve organizational performance and the quality of working life. By contrast, perceptions of unfairness have a negative impact. Employee participation and family-friendly working Some studies which have examined the business consequences of implementing familyfriendly employment policies have found benefits in doing so. Others have tried to determine whether employees have a voice over work-life issues, and how instrumental it might be in establishing family-friendly employment policies. Employees appear to have a voice of some kind in larger organizations. It tends to be collective, and expressed through trade unions or staff associations. Smaller enterprises typically lack collective means of expression, though there can be direct communication between individual employees and their employers over flexible working. Some studies have reported individuals negotiating informal arrangements with their managers in small and medium-sized enterprises to suit their individual circumstances, but not all employees have a powerful enough voice to achieve this. Family-friendly policies appear to be more widespread and deeply embedded in enterprises which recognize unions, though this association does not imply that unions have a more effective voice. Various studies have confirmed the low-key role of trade unions. Consultation - even with and among line managers - also appears to be rather restricted, with the possible exception of health services, where there is an organizational cultural tradition of consultation.

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However, the major factor influencing employers to implement or extend family-friendly policies appears not to be collective or individual employee pressures, but labour-market conditions backed by minimal statutory requirements. The management of time is an essential workplace process over which employees - especially those with domestic responsibilities - need a measure of control in order to combat tensions between the demands of work and home. Despite some softening of the political climate towards trade unions and scarcity of labour in some sectors, there is little evidence that employees, collectively or individually, have been able to make any significant impression on the work-life agendas of companies, even with evidence that there can be a business case for such policies. It also seems that some managers continue to adopt a gendered and possibly marginalized perspective of work-life issues. Research has also shown that long working hours - another major dimension of work-life conflict - have scarcely been touched by the Working Time Regulations or high-profile concerns expressed in the media and elsewhere. In terms of the work-life balance and family-friendly working, the evidence suggests that the voices of employees remain muted. Policy implications The extent of current political support for employee participation is mixed. At times it appears uncoordinated or even contradictory, as evidenced by the Government's ambiguous stance towards greater European influence over participation practice and work reforms such as the Working Time Directive. In addition, work-related participation policies focus on efforts to promote collective (though not necessarily trade union-based) participation through measures such as social partnership, while financial participation legislation leans towards individualized programmes. Current policy appears to be trying to appease both employers' and to a lesser extent trade union aspirations, though initiatives to date seem to point to the former direction. This apparent lack of co-ordination of policy will have a disproportionate impact on small firms. Small firms are less likely to introduce work-related participation measures than larger companies, therefore providing few opportunities to access the positive effects of combining participation schemes. On top of this, the Employment Relations Act 1999 works against the development of collective participation in small firms through the exclusion of enterprises with 20 employees and under from union recognition rights. This possibly excludes up to five million workers in the UK. Since the quality and quantity of welfare policies are associated with trade union presence, small firms and their employees could be missing out on the positive effects of combining participation and welfare schemes. Furthermore, the introduction of European Works Councils (EWC) applies only to large, complex enterprises with specific cross-European operations. Here, policy needs to focus on the

28

training of EWC delegates in order to realize the positive effects of participation. There are also some areas where the reach of policy is limited. Participation measures are not isolated from the effects of the external environment. Economic fluctuations have an impact on share prices, for instance, and the voluntary nature of many participation schemes means that they are vulnerable to cost-saving exercises. In addition, there are discrepancies between how a policy is conceived at national or organizational level and how it is interpreted at company or workplace level. "People don't leave their jobs, they leave their managers." Although committed and loyal employees are the most influential factor to becoming an employer of choice, it's no surprise that companies and organizations face significant challenges in developing energized and engaged workforces. However, there is plenty of research to show that increased employee commitment and trust in leadership can positively impact the company's bottom line. In fact, the true potential of an organization can only be realized when the productivity level of all individuals and teams are fully aligned, committed and energized to successfully accomplish the goals of the organization. As a result, the goal of every company should be to improve the desire of employees to stay in the relationship they have with the company. When companies understand and manage employee loyalty - rather than retention specifically - they can reap benefits on both sides of the balance sheet i.e., revenues and costs. On the revenue side of the balance sheet, loyal and committed employees are more likely to go "above and beyond" to meet customer needs and are highly motivated to work to the best of their ability. Both of these traits are crucial for continued customer commitment and ongoing revenue and growth for the company. On the cost side, loyal employees stay longer, resist competitive job offers, do not actively look for other employment and recommend the company to others as a good place to work. These four behaviors positively influence the cost side of the balance sheet because they are leading indicators of employee retention. The longer companies keep their employees, the longer they can avoid having to pay to replace them. In other words, rather than focusing only on retention (that is, trying to retain employees who have already decided to leave), organizations should proactively recognize the benefits of understanding, managing and improving employee loyalty. The most successful organizations are those that can adapt their organizational behavior to the realities of the current work environment where success is dependent upon innovation, creativity and flexibility. Additionally, the dynamics of the work environment have to reflect a very diverse population comprised of individuals whose motivations, beliefs and value structures differ vastly from the past and from each another. Arguably, the most

29

valuable, but also volatile, corporate asset is a stable workforce of competent, dedicated employees, since such an employee base gives companies a powerful advantage; depth of knowledge and organizational strength.One of the key steps to understanding and improving employee loyalty is by acknowledging the importance of the following factors in building loyalty and satisfaction: Broadly-defined responsibilities rather than narrowly-defined job functions Effective and regular performance evaluations, both formally and informally A corporate emphasis on employee learning, development and growth Wide-ranging employee participation in the organization as a whole Typically, a combination of factors influences employees' decisions to stay at their current job. Contributing factors include satisfying work, a sense of job security, clear opportunities for advancement, a compelling corporate mission combined with the ability to contribute to the organization's success, and a feeling that their skills are being effectively used and challenged. Specifically, employees who enjoy their work, identify themselves with their employer and perceive that the company is flexible regarding work and family issues also intend to stay with the organization. Today, employee loyalty needs to be earned, rather than assumed, and must be specific, rather than general - employees are looking at their employment as a means of achieving personal goals rather than simply being the "good corporate soldier" of the past. This means that companies need to express and act on a commitment to develop employees' career objectives by introducing initiatives that make employees believe that their current job is the best path to achieving their career goals. In particular, consider the following elements of effective strategies designed to build loyalty and retain key employees: Include opportunities for personal growth and invest heavily in the professional development of the best people in the organization. Provide employees with well-defined career paths (including a succession plan), mentors and tuition reimbursement for job-related education. Train employees, even if it makes them more attractive to the competition. Without seeing an opportunity on the horizon, few high potential employees will stay with a company and allow themselves to grow stagnant. Acknowledge non-work priorities by recognizing and responding to employees' needs for greater balance in their lives, since employees will develop loyalty for organizations that respect them as individuals, not just as workers. Another approach to the issue of loyalty is to consider the value of the five "I's":

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Interesting work. No one wants to do the same boring job over and over, day after day. Although any job will require some repetitive tasks, all jobs should include at least some parts that are of high interest to employees. Information. Information is power and employees want to have the information they need to know to do their jobs better and more effectively. And, more than ever, employees want to know how they are doing in their jobs and how the company is performing overall. It is vitally important to open the channels of communication in an organization to allow employees to be informed, ask questions, and share information and to inspire them to share the vision of the company. Involvement. Managers today are faced with an incredible number of opportunities and problems and, as the speed of business continues to increase, the amount of time that they have to make decisions continues to decrease. Involving employees in decision-making, especially when the decisions affect them directly, is both respectful and practical. Not only do those closest to the problem typically have the best insight as to what to do, involving them in decision-making will increase their commitment and improve the success of implementing new ideas or change. Similarly, management needs to follow through on promises and live the values they preach. Independence. Few employees want their every action to be closely monitored. Most employees appreciate having the flexibility to do their jobs as they see fit. Giving employees latitude increases the chance that they will perform as desired, as well as bringing additional initiative, ideas, and energy to their jobs. Employees also need to be encouraged to achieve their best potential. Increased visibility. Everyone appreciates getting credit when it is due. The occasions to share the successes of employees with others are almost limitless. Giving employees new opportunities to perform, learn, and grow as a form of recognition and thanks is highly motivating for most people. Another important strategy for improving loyalty is to implement a systematic process of performance reviews, since effective reviews can simultaneously increase employee morale and productivity. To achieve their primary objectives, such as improving the working relationship between employee and supervisor, performance reviews should be structured so as to: Accurately define the employee's job description, including a focus on the skills most important to the employee's job Discuss the job skills the employee performs well on and identify areas that need improvement so as to fairly summarize their most recent job performance

31

Set mutual and worthwhile goals, which are the heart of a professional growth plan Provide useful coaching to improve the employee's performance With these objectives, performance reviews can make an important and ongoing contribution to furthering each employee's career. Related to the role of performance reviews, another important influence on employee satisfaction is a sense of being led by capable management, with both immediate supervisors and senior management having a clear sense of direction for the organization. One of the forces that disconnects employees from their companies is management's ever-changing corporate focus. By introducing yet another corporate initiative, employees come to question the credibility of management and the focus of the company. They begin to wonder what the company stands for, where it's going, and if the latest initiative is yet another "here today, gone tomorrow" program. Employees are therefore skeptical at best - and cynical at worst - about their company's perpetually shifting focus. Without a constant, long-term strategic vision, organizations risk confusing, bewildering, depressing and disconnecting with their employees. Within an environment of ever-changing focus, employees find it hard to see a strong link between their role and the company's core purpose. Alternatively, communicating a company's shared vision and establishing a shared mission with employees are important means of enhancing employee commitment. Employees feel a stronger sense of job satisfaction when they agree with the strategic decisions, especially when they are involved in developing the strategic direction. In addition to establishing and communicating a strategic vision for the company, loyalty also requires building a partnership between management and employees and creating an environment of mutual respect, involvement and open communication. Maintaining open lines of communication with employees will enable senior management to keep up with their changing needs into the future. Recent studies have shown that managers, whether front-line supervisors, project leaders, team captains or senior management, actually have more power than anyone else to reduce unwanted employee turnover because the most important factors driving employee satisfaction and commitment are largely within the direct manager's control. These include providing recognition and feedback regularly, offering opportunities to learn and grow, helping to ensure fair compensation reflecting an employee's contributions and value to the organization, fostering a good work environment, and above all, recognizing and respecting the uniqueness of each employee's competencies, needs, desires and working style. At the supervisory level, though, managers also need to strike the right balance of using a more employee-centered leadership style, under which their employees are welcome to participate in making decisions (i.e., "leadership through collaboration"), but
32

withoutgoing so far as to abdicate responsibility for decision-making. When the participatory approach becomes excessive, employees may feel that they are being given more responsibility than their positions should require and, thus, can feel overworked or underpaid for the work expected. It is also critically important to recognize that, when employees indicate the intention to leave, they generally do - this means that attrition can be predicted through survey measurement, which gives employers an important "window of opportunity" to foresee and address talent loss within specific departments so as to change the environment that is causing employees to leave. Research has indicated that the biggest gaps between those who intend to stay and those who intend to leave can be best summarized as (1) the opportunity for employees to use their skills effectively and (2) differing perceptions of the leadership ability of senior management. In conjunction with these key differences, projections have shown that improvements in the areas directly related to turnover can lead to a potential 5% decrease in actual turnover, which has real financial benefits for the organization. Did you realize that employees change jobs more for career options and training opportunities than they do for money and benefits? In fact, seeking opportunities for the long term rather than just the current job has much more influence over job change than monetary compensation - it is evident that money is a satisfier, but not a driver, of employee loyalty. Similarly, it is not salary that makes a committed employee. Compensation packages, while important, have become secondary to the employees' desire to be challenged, to contribute, to be recognized and to know how they will fit into the organization. However, this is not to claim that pay and benefits are unimportant. There are strong correlations between compensation, benefits plans and employee commitment. It should not be surprising, though, that the compensation plans with the strongest link to employee commitment are those that give employees a stake in the future success of the organization. Compensation plans in general help drive commitment when employees understand the program and believe it to be fair. It is also worth noting that the way an organization distributes money indicates what management really wants including sending a message to employees as to whether the company truly pays for performance. In short, then, there are five actions organizations should take to reduce attrition and improve employee satisfaction: Demonstrate to employees that the company cares about them, wants them to advance in their careers and will help them satisfy their need for personal growth.

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"Walk the talk" by not only communicating the corporate strategy but by also ensuring that it is applied consistently throughout the organization, including making the rewards system consistent with strategic goals. Watch for and eliminate all inconsistencies between promoting a belief in employees and managerial behavior or policies that undermines that commitment. Fight attrition with smart training that is not only relevant but helps broaden employee experiences and provides development opportunities. Weed out poor managers because many employees leave their jobs because they are unhappy with their bosses - remember the adage that "people don't leave their jobs, they leave their managers."

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RESEARCH METHODOLOGY
MEANING OF RESEARCH Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge.1 Redman and Mory define research as a systematized effort to gain new knowledge.2 Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research.

OBJECTIVES OF RESEARCH The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings: 1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formulative research studies); 2. To portray accurately the characteristics of a particular individual, situation or a group(studies with this object in view are known as descriptive research studies); 3. To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies); 4. To test a hypothesis of a causal relationship between variables (such studies are known as hypothesis-testing research studies).

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TYPES OF RESEARCH The basic types of research are as follows: (i) Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discover causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods. In analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material. (ii) Applied vs. Fundamental: Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization, whereas fundamental research is mainly concerned with generalizations and with the formulation of a theory. Gathering knowledge for knowledges sake is termed pure or basic research.4 Research concerning some natural phenomenon or relating to pure mathematics are examples of fundamental research. Similarly, research studies, concerning human behavior carried on with a view to make generalizations about human behavior, are also examples of fundamental research, but research aimed at certain conclusions (say, a solution) facing a concrete social or business problem is an example of applied research. Research to identify social, economic or political trends that may affect a particular institution or the copy research (research to find out whether certain communications will be read and understood) or the marketing research or evaluation research are examples of applied research. Thus, the central aim of applied research is to discover a solution for some pressing practical problem, whereas basic research is directed towards finding information that has a broad base of applications and thus, adds to the already existing organized body of scientific knowledge. (iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human behavior (i.e., why people think

36

or do certain things),we quite often talk of Motivation Research, an important type of qualitative research. This type of research aims at discovering the underlying motives and desires, using in depth interviews for the purpose. Other techniques of such research are word association tests, sentence completion tests, story completion tests and similar other projective techniques. Attitude or opinion research i.e., research designed to find out how people feel or what they think about a particular subject or institution is also qualitative research. Qualitative research is especially important in the behavioral sciences where the aim is to discover the underlying motives of human behavior. Through such research we can analyze the various factors which motivate people to behave in a particular manner or which make people like or dislike a particular thing. It may be stated, however, that to apply qualitative research in practice is relatively a difficult job and therefore, while doing such research, one should seek guidance from experimental psychologists. (iv) Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research relies on experience or observation alone, often without due regard for system and theory. It is data-based research, coming up with conclusions which are capable of being verified by observation or experiment. We can also call it as experimental type of research. In such a research it is necessary to get at facts firsthand, at their source, and actively to go about doing certain things to stimulate the production of desired information. In such a research, the researcher must first provide himself with a working hypothesis or guess as to the probable results. He then works to get enough facts (data) to prove or disprove his hypothesis. He then sets up experimental designs which he thinks will manipulate the persons or the materials concerned so as to bring forth the desired information. Such research is thus characterized by the experimenters control over the variables under study and his deliberate manipulation of one of them to study its effects. Empirical research is appropriate when proof is sought that certain variables affect other variables in some way. Evidence gathered through experiments or empirical studies is today considered to be the most powerful To conduct any research a scientific method must be followed. The universe of study is very large in which it is difficult to correct information from all the employees. So, the sampling method has been followed for the study. The analysis is based on primary as well as secondary data. Research methodology is used to solve out all systematic problems of the research. In this study, first the logic behind the problem has been clearly analyzed and then the conclusion is given according to the general procedure. It is not only used, to know about the research methods or technique but also to gain knowledge about the various dimensions of methodologies. Research design is the general process that guides the data analysis of the

37

project and it brings the research under a descriptive of methodology. The major purpose of the descriptive research is to analyze the data collection primarily and to make various suggestions to the research for a conclusive result. Then the conclusive research is made to analyze the actual result of the research from the expected quality. Thus the descriptive and conclusive research design is used for this research. An undisguised structured questionnaire is used for this research as it convinced the respondent by providing more comfort in responding for the questions raised by the researcher. The question, which comes under this questionnaire, made the respondent to understand the question clearly. Moreover multi-choice question and rank questions were been raised in the questionnaire and the analysis of these questions were been carried out by the research work of the researcher.

SAMPLING DESIGN: Sample in a selection of units from the entire group called the Universe of interest. A sample in a particular segment, which focuses the decisions which can be applied to the entire organization. The units included in the sample can be easily approached to obtain the desired information for taking decisions. Here the survey is mainly used for the particular Employee of the organization in order to make the sample in a compensative manner. SAMPLING PROCEDURE: In sampling procedure the survey is mainly done to selected employees who are depending upon the lines. As here when the personal interview method is clubbed with structured questionnaire made the survey technique to be easier and comfortable for the researcher and the survey was conducted to 75 employees of the organization. Sampling technique used = Simple random sampling

SAMPLING SIZE: The sampling size includes most of the employee who depend on lines training and development as it includes more then hundred employees who depend on lines where 75 are trained category, 20 are in training and 5 given training and developing stage.

Total sample size = 120

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STATISTICAL & TOOLS USED: ANOVA

39

EMPERICAL RESULT

TABLE - 1 AGE COMPOSITION

AGE BELOW 30 40 ABOVE 40 TOTAL

NO.OF RESPONDENTS 46 40 34 120

PERCENTAGE 38.33 33.34 28.33 100

AGE COMPOSITION
Below 30 30-40 Above 40

28%

38%

34%

INTERPRETATION From the above tabulation it is observed that 38.33% of the respondents belong to age group of below 30, 33.34% of the respondents belong to 31-40 age group and 28.33% of the respondents are in age group of above 40.

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TABLE -2 SEX WISE CLASSIFICATION

SEX MALE FEMALE TOTAL NO.OF RESPONDENTS 88 32 120 PERCENTAGE 73.33 26.67 100

SEX WISE CLASSIFICATION

MALE FEMALE

27%

73%

INTERPRETATION From the above tabulation it is observed that 73.33% of the respondents are males and 26.67% of respondents are Females.

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TABLE-3 DELEGATION OF WORK

COMPANY

NO.OF RESPONDENTS

PERCENTAGE

FAIRLY NOT FREQUENTLY NOT AT ALL TOTAL

61 43 16 120

50.83 35.84 13.33 100

DELEGATION OF WORK
FAIRLY NOT FREQUENTLY NOT AT ALL

13%

51% 36%

INTERPRETATION From the above tabulation it is observed that 50.83% of respondents feel that the delegation of work is done in a fair manner, 35.84% of respondents feel delegation is not done frequently and the remaining 13.33% of respondents feel there is no delegation of work.

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TA BLE - 4 TYPE OF TRAINING PREFERED BY THE EMPLOYEES

TYPE IN HOUSE TRAINING PROMOTIONAL TRAINING SPECIAL TRAINING ROLE PLAY TRAINING DISCUSSION TRAINING IN HOUSE TRAINING TOTAL NO.OF RESPONDENTS 41 21 17 12 14 15 120 PERCENTAGE 34.16 17.50 14.17 10.00 11.67 12.50 100

TYPE OF TRAINING PREFERED BY THE EMPLOYEES

IN HOUSE TRAINING ROLE PLAY PROMOTIONAL TRAINING DISCUSSION TRAINING 14% 12% 10% 14% 18% 34% SPECIAL TRAINING IN HOUSE TRAINING

INTERPRETATION :-From the above tabulation it is observed that the maximum preference of the respondents in the lines is due to the high quality of freight services provided by them. And the remaining, services do not make much difference from the inflation.

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TABLE-5 EMPLOYEE FEEDBACK OF MANAGERS

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL

NO.OF RESPONDENTS 61 43 16 120

PERCENTAGE 50.83 35.84 13.33

EMPLOYEE FEEDBACK OF MANAGERS

EXCELLENT GOOD AVERAGE

13%

36%

51%

INTERPRETATION From the above tabulation it is observed that most of them prefer the Booking Processing Services so it is awarded rank I and the remaining are the other ranks.

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TA BLE - 6 EMPLOYEE PERCEPTION ABOUT THE COMPANY

PERCEPTION NO. OF RESPONDENTS EXCELLENT 38 GOOD 73 AVERAGE 9 TOTAL 120

PERCENTAGE 31.67 60.83 7.50 100

EMPLOYEE PERCEPTION ABOUT THE COMPANY

EXCELLENT GOOD AVERAGE

7%

32%

61%

INTERPRETATION From the above tabulation it in observed that out of the total respondents 60.83% feel that the company is excellent and 31.67% expected that it is good and only 7.50% expected that it is average.

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TA BLE - 7 EMPLOYEE PERCEPTION ABOUT GROWTH IN THE ORGANIZATION

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL NO. OF RESPONDENTS 44 69 7 120 PERCENTAGE 36.67 57.50 5.83 100

EMPLOYEE PERCEPTION ABOUT GROWTH IN THE ORGANIZATION

EXCELLENT GOOD AVERAGE

6% 37%

57%

INTERPRETATION From the above table it is analyzed that out of total respondents 57.50% feel that there is excellent growth in the company, 36.67% feel there is good growth opportunities and only 5.83% feel it is average.

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TABLE - 8 EMPLOYEE PERCEPTION ABOUT TRAINING AND DEVELOPMENT

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL

NO.OF RESPONDENTS 10 89 21 120

PERCENTAGE 8.33 74.17 17.50 100

EMPLOYEE PERCEPTION ABOUT TRAINING AND DEVELOPMENT

EXCELLENT GOOD AVERAGE

18%

8%

74%

INTERPRETATION From the above table it can be inferred that out of the total respondents 74.17% feel the training and development programme is excellent , 17.50% feels it is good and 8.33% feels it is average.
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TABLE 9 EMPLOYEE PERCEPTION ABOUT TEAM WORK

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL

NO.OF RESPONDENTS 36 82 2 120

PERCENTAGE 30.00 68.33 1.67 100

EMPLOYEE PERCEPTION ABOUT TEAM WORK

EXCELLENT GOOD 2% AVERAGE

30%

68%

INTERPRETATION From the above table it is observed that 68.33% of respondents feel that the team work is excellent , 30% of respondents feel it is good and only 1.67% feel it is average.

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TABLE - 10 EMPLOYEE PERCEPTION ABOUT TREATMENT OF EMPLOYEES

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL

NO.OF RESPONDENTS 21 74 25 120

PERCENTAGE 18.33 72.50 9.17 100

EMPLOYEE PERCEPTION ABOUT TREATMENT OF EMPLOYEES

EXCELLENT GOOD AVERAGE

9%

18%

73%

INTERPRETATION :-From the above table it can be inferred that out of total respondents 72.50% feel that the employees are treated fairly , 18.33% feel that the employees are treated excellently and only 9.17% feel that the employees feel average.

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TABLE - 11 EMPLOYEE PERCEPTION ABOUT THE WORK ENVIRONMENT

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL

NO.OF RESPONDENTS 11 93 16 120

PERCENTAGE 9.17 77.50 13.33 100

EMPLOYEE PERCEPTION ABOUT THE WORK ENVIRONMENT

EXCELLENT GOOD AVERAGE

13%

9%

78%

INTERPRETATION From the above table it is observed that 77.50% of respondents feel that the work environment is good, 13.33% of respondents feel it is average and only 9.17% feel it is excellent.

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TABLE 12 EMPLOYEE PERCEPTION ABOUT FOOD AND TRANSPORT FACILITIES

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL

NO.OF RESPONDENTS 26 81 13 120

PRCENTAGE 21.6 67.50 10.83 100

EMPLOYEE PERCEPTION ABOUT FOOD AND TRANSPORT FACILITIES

EXCELLENT GOOD 11% AVERAGE 22%

67%

INTERPRETATION From the above table it can be inferred that out of total respondents 67.50% feel that the food and transport provided is good, 21.67% feel it is excellent and only 10.83% feel it is average.

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TABLE - 13 EMPLOYEE PERCEPTION ABOUT SANITATION FACILITIES AND SHIFT TIMINGS

PERCEPTION EXCELLENT GOOD AVERAGE TOTAL

NO.OF RESPONDENTS 43 71 6 120

PERCENTAGE 35.83 59.17 5.00 100

EMPLOYEE PERCEPTION ABOUT SANITATION FACILITIES AND SHIFT TIMINGS

EXCELLENT GOOD 5% AVERAGE

36%

59%

INTERPRETATION From the above table it can be inferred that out of total respondents 59.17% feel that the sanitation facilities and shift timings are good, 35.83% feel it is excellent and only 5% feel it is average.

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TABLE - 14 EMPLOYEE PERCEPTION ABOUT THE LEADERSHIP AND PLANNING

EMPLOYEE PERCEPTION ABOUT THE LEADERSHIP AND PLANNING

EXCELLENT GOOD 5% 32% AVERAGE

63%

INTERPRETATION From the above table it can be inferred that it out of total respondents 63.33% feel that the leadership and planning in the organization is good, 31.67% feel that is excellent and 5% feel that it is average.

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TABLE - 15 EMPLOYEE OVERALL SATISFACTION LEVEL

PERCEPTION ABOVE EXPECTATION UPTO MY EXPECTATION BELOW EXPECTATION TOTAL

NO.OF RESPONDENTS 12 88 20 120

PERCENTAGE 10.00 73.33 17.67 100

EMPLOYEE OVERALL SATISFACTION LEVEL

ABOVE EXPECTATION UPTO MY EXPECTATION BELOW EXPECTATION

17%

10%

73%

INTERPRETATION From the above table it can be inferred that out of total respondents 73.33% are overall satisfied with the company , 17.67% they are not satisfied and only 10% feel it is above their expectation.

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DATA ANALYSIS AND DISCUSSION

ANOVA is the short form of analysis of variance. ANOVA is used when multiple sample cases are involved. Generally, this test can't be used to examine the significance of difference amongst more than two sample means at the same time. ANOVA is said to be the statistical procedure for testing the difference among different groups of data for homogeneity. It is a technique splits the variance of analytical purposes. Variance is an important statistical measure and is understood as the mean of the square of deviations taken from the mean of the given series. Variance can be derived as the square of the Standard Deviation.

From the given sample, we can find out the variation of each item within the sample from the respective Arithmetic mean. This variation is known as "variation within the sample". At the same time the variation of each sample from the Grand mean can be calculated and named as variation between the samples. These two variations are compared and expressed as a ratio known as "Fishers variance Ratio" named by symbol "F".

Variance ratio is the ratio, which the greater variance bears to the smaller variance. In other words, this ratio is worked out as under F - coefficient as below:

The following steps derive the procedure in which ANOVA is used for Hypothesis test. 1. Observe the total for the individual items values in all the samples and denote it as T. 2. Derive the correction factor as under correction factor

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3. Analyze the squares of all the items and denote the total value as SSQ, which derives the sum of squares. The deduct the correction factor (C.F) from that value in order to find the (sum of squares of the total) SST = SSQ-C.F. 4. Obtain the square of each sample and divide those square value of sample by the number of items in the concerning sample and take this total and the result is denoted as SSC sum of square of deviation for variance between samples SSC = ( C1/N1+C2 / N2 + C3/N3+....) CF 5. The sum of squares within the samples, (SSE) can be found out by deducting the following statement SSE = SST - SSC 6. Find the degree of freedom for SSC & SSE by using the following formulae. SSS = No of samples - 1 SSE = No of items - No of samples 7. The next step is to find the variance by dividing the sum of squares of deviation by respective degree of freedom. 8. The value of 'F' is calculated by dividing the greater variance by smaller variance i.e. 9. The calculated value of F has been compared with table value. In this if the calculated value is lesser than the Table value then the null hypothesis (Ho) is accepted. When the calculated value is greater than table value then the Null hypothesis (Ho) is rejected.

HYPOTHESIS TEST Table No.7 & 10 [Expected service quality of employees service

& Actual service quality of employees

NULL HYPOTHESIS (H0): These are no significant difference between the expected service quality and Actual service quality of the employees.

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ALTERNATIVE HYPOTHESIS (H1): These us a significant difference between the expected growth and actual growth of the employees in thew organization.

T = 240 Correction factor (C.F) = T2/N = 57600/6 = 9600 Sum of squares (SSQ)= 1936 + 4761 + 49 + 441 + 5476 + 625 = 13288 Sum of squares of the total (SST = SSQ - C.F = 13288 - 9600 = 3688 Sum of squares of Deviation for variance between samples (SSC) = [ C1/N1+ C2/N2 + C3/N3 +...] - C.F = [(65 x 65/2) + (143x143/2) + (32x32/2)] 9600 = 12848 - 9600 = 3248 Sum of squares within the samples (SSE) = SST - SSC = 3688 - 3248 = 440

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ANALYSIS
ANALYSIS OF VARIANCE TABLE In the below table the 'F' value derives the formula as

Sources of variation B/w samples (or columns) Within samples(or errors)

Sum of squares 3248 440

Degree of freedom (3-1)=2 (6-2)=4

Mean of squares 3248/2=1624 440/4=110

F 1624/110=14.76

Degree of freedom for greater variance is 2 Degree of freedom for smaller variance is 4 Table value of F @ 5% level of significance = 6.94 Therefore calculated value > table value Therefore H0 is rejected i.e. - These is a significance difference between the perceived quality and actual quality of employee services and attitude in the lines.

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LIMITATIONS
Though the sample size is small by numbers it made some of the respondents to fell as a long one due to the respected sub division. Responses of certain Employees were not up to the expected level, which could have influenced the result of the study. As here all the quantitative tools have not been used while the questionnaire is considered to be long so the researcher has chosen the currently required tool, which could produce an accurate result. Certain quires were very busy, they took quite a long period to respond and some of the quire refused to respond. As here exhausted survey method and multiple survey method have not been used may also influence the exact result of the study.

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FINDINGS
1. From the study, it is analyzed that 38.33% of the respondents are age group of below 30, 33% of respondents belong to 31-40 age group and only 28.33% of respondents are in age group of above 40. 2. 73.33% of the respondents are male and only 26.67% of respondents are female 3. From the study 50.83% of respondents are found to believe that the delegation of work is done fairly while 35.84% feel that delegation of work is not done frequently and only 13.33% of respondents feel that delegation of work is not done at all. 4. From the study we find that almost 70.34% of the employees feel that in house training is the best. 5. 50.23% of the employees feel that the managers are excellent and 35.34% of the employees feel that the managers are good and the remaining 14% of the employees feel that the managers are average. 6. 31.67% of the respondents feel that the company is excellent , 60.83% of the respondents feel that the company is good and 7.50% of the respondents feel that the company is average. 7. 36% of the respondents feel that there is good growth in the organization and 51% of the respondents feel that the growth is not so good in the organization and 13 % of the respondents feel that there is no growth in the organization. 8. 8.33% of the respondents feel that the training and development program in the company is excellent and 74.5% feel that the training and development program is good and 17.50% feel that it is average. 9.60% of the employees feel that there is very good team work in the organization and 38.5% feel that the team work is good and 1.6% of the respondents feel that the team work is average. 10. 18.1% of the employees feel that the employees are treated excellently and 67% of the respondents feel they are treated pretty good and 14% of the respondents feel they are treated averagely. 11. 9% of the employees feel that the work environment is excellent and 67% of the respondents feel the work environment is pretty good and 24% of the respondents feel it is average. 12. 12% of the employees feel that the food and transport provided is excellent and 57% of the respondents feel the food and transport provided is pretty good and 31% of the respondents feel it is average.

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13. 35% of the employees feel that the sanitation and shift timings are excellent and 59% of the respondents feel sanitation and shift timings is pretty good and 05% of the respondents feel it is average. 14. 31% of the employees feel that the leadership and planning are excellent and 56% of the respondents feel leadership and planning is pretty good and 14% of the respondents feel it is average 15. 10% of the employees feel that they are overall satisfied with the with the organization and 17% of the respondents feel it is average

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RECOMMENDATIONS

RECOMMENDATION NO.1 It is recommended that transport facilities may be provide for the employee by the management

BASIS FOR RECOMMENDATION It was found that 25% fully disagreed towards their mode of transport not being convenient. So we have recommended that they may be provided with good transportation facility.

BENEFITS IF ACTED UPON A convenient transport sponsored by the management would be an advantageous since the employees would be able to be regular and on time.

RECOMMENDATION NO.2 It is recommended that the employee's incentive scheme may be enhanced

BASIS FOR RECOMMENDATION It was found that 28% fully disagreed about the incentives given to them not being sufficient. So we would like to recommend better incentive schemes be employed for the staff. BENEFITS IF ACTED UPON If more incentives are given the employees would be more satisfied and this would be a moral boost for them to perform well.

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RECOMMENDATION NO.3 It is recommended that the catering facility for the staff may be reviewed and improved

BASIS FOR RECOMMENDATION It was found that 25% fully disagreed about the catering facility being adequate. they found their cafeteria service being inadequate.

BENEFITS IF ACTED UPON If good cafeteria facility is provided, they can refresh and relax since they are prone to work continuously during their shift hours

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CONCLUSION
By referring to all inferences made out from the study a conclusion in given as follows. From the study it is very clear that employee participation helps the organization to develop their business. Employee participation also acts as an impetus in building good relationships among the employees and the employers. Futher from the study we find that the involvement of the employee in the business helps in increased productivity , employee satisfaction , improves morale and above everything it helps in the development of the business. Thus from the study it is very clear that employee participation in business is one of the most important aspects in today's business

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BIBLIOGRAPHY
C.R. Kothari(1999) Quantitative Techniques, 3rd Edition Vikas publishing house Pvt Ltd. C.R. Kothari (2000) Research Methodology and Techniques,Vishwa prakasham, new Delhi. R.S. Dwivedi (2001) , Research Methods in behavioral sciences, Macmillan India, Ltd. S.M. Jha ( 2000) Services Marketing , Himalaya Publications Millennium Edition. T.N. Chabra (HRM), Aswathapa (HRM) www. Scribd.com

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ANNEXURE

QUESTIONNAIRE Employee involvement or participation and its effect on firm and workers: NAME:______________ SEX:______ DATE:______________ 1) What is your age? Below

36 to 40.................................

2) How long have you worked for BHEL? Six months to less than a year..............

3) Are the higher authorities delegating jobs to the employees? Delegation is not done fairly............................................................................

4) What is the type of training that the employees prefer. In HouseTraining. Promotional Training Special Train.. Role play Training Discussion Technique Training.. 5) How would you rate your managers?

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Average.

6) What was your expectation from the Company with regard to participation?

Average. 7) How is the growth in this organization. Excellent........................

8) How are the training and development programs conducted? Excellent........................................................................................... Good ............................................................................................ Average..................................................... 9) What is employee perception about team work.

. 11) The work environment is friendly & warm Somewhat

12) How would you rate the food/transport being provided. Excellent........................................................

13) How would you rate the Sanitation facilities & Shift timings ? Excellent....................

14) How would you rate the leadership and planning in the organization?

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Average..................................

15) Overall, how satisfied are you with the Company as an employee?

Upto my expectation.......................................

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