Employee Participation in Management

What is EPM ?
It is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of an undertaking and through which they express their opinion and contribute to management decisions.

Elements of Participation
1) 2) 3)

Mental and Emotional involvement rather than mere Physical activity Initiative, Knowledge, Creativity and Ingenuity in the objectives of Organization. Encourages people to share Responsibility for a Decision or Activity.

Objective
Increase

in Productivity Giving employees a better understanding Co-operation for industrial peace and harmony Satisfying the employees urge for self expression Improve quality of work life

scope
Information

Sharing Sharing Decision Making Self Control

Significance
Higher

Productivity Greater Commitment Reduced Industrial unrest Improved decisions Human resource development Reduced resistance to change

Levels of EPM
Informative

and associative participation Consultative participation Administrative participation Decision participation

Forms of EPM
Collective

Bargaining Work Councils Joint Management Councils and Committees Board Representation Workers Ownership of enterprise

Prerequisite for success

The

Overall Climate Sufficient Time to participate Subject of participation Intelligence and Knowledge Effective system of communication No effect on authority of participants Cost should be less than benefits Within the framework of overall policy

Workers Ownership as Turnaround Management

In

this, the workers can provide guidance to existing management or serve as interim manager when existing management has been compromised or crisis exists. Often a new face can become a catalyst for resolution of previously hardened positions.

Reasons for failure

Differences

Failure

to imbibe the spirit of participation Lack of strong trade unionism Unhappy industrial relations Non-cooperative attitude of working class Delays in decision making Delay in implementation

Strategies for Participation

1. 2.

ESOP Quality Circles

ESOPs
A

type of tax-qualified employee benefit plan in which most or all of the asset are invested in the employers stock.

Quality Circle
Concept

USA High Quality at Low Cost It includes Teaching Employees Group Communication Skill, Quality Strategies & Measurement and Problem Analysis Technique.

or Technique first originated in

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