EMPLOYEE INVOLVEMENT

Submitted to: Dr. Shefali Nandan

Submitted by:
Ujjwal Mishra
Satish Arya
Nidhi Kumari
Tarun Talreja
 Table of content

• Definition
• Aspect of employee involvement
• Encouraging employee involvement
• Levels of Employee Involvement
• How involvement improves decisions
• Outcomes of Employee Involvement
• Overcoming Involvement Challenges
• Forms of employee involvement
• References
 Employee involvement

• A participative process that uses the input of employees to

increase their commitment to the organization’s success.
• The direct participation of staff to help an organization fulfil
its mission and meet its objectives by applying their own
ideas, expertise, and efforts towards solving problems and
making decisions.
• Regular participation of employee in deciding how work is
done, making suggestion for improvement, goal setting,
planning and monitoring of their performance.
 Aspects Of Employee Involvement

• Employee motivation
• Employee empowerment
• Teams and team work
• Performance appraisal
 Encourage Employee Involvement

• Employees need to be given the authority to

participate in substantive decisions
• Employees need to have training or experience with
appropriate decision-making skills
• Incentives to participate must be present
• Communicate the results with all of your staff

Contd……
Encourage Employee Involvement
• Give a brief survey to your staff that is made up of
open-ended questions that ask for specific
improvement ideas
• Review every response
• Create a team to implement the easiest ideas that can
have the greatest positive impact
 Levels of Employee Involvement

High involvement — Employees have

High complete decision making power

Full consultation — Employees offer

recommendations
Medium

Selective consultation — Employees

give information, but don’t know the
problem
Low
How Involvement Improves Decisions

Identify and define

problems better

Employee Usually identify more

and better solutions
Involvement

More likely to select

the best option
 Outcomes of Employee Involvement
• Improved organizational decision-making capability
• Improved attitude regarding work
• Substantially improved employee well-being
• Reduced costs through elimination of waste and
reduced product cycle times
• Empowerment, job
satisfaction, creativity, commitment and motivation, as
well as intent to stay
• Increased employee productivity across industries
 Overcoming Involvement Challenges

• Cultural Differences
• Better in collectivist and low power distance cultures
• Management Resistance
• Educate/train managers to become facilitators
• Employee and Union Resistance
• Concerns about increased stress, giving up union
rights, and union power
• Solution is trust and involvement
 Example of employee involvement

1. Wegmans grocery stores involve their employees in

making decisions that affect their work and please their
customers.
2. Wegmans encourages employees to make on the spot
decisions without consulting their immediate supervisors.
Major forms of employee involvement

1. Participative Management
2. Representative participation
3. Quality circles
 Participative Management

• A process in which subordinates share a significant

degree of decision-making power with their
immediate superior.
• Participation typically has only a modest influence
on variables such as employee productivity,
motivation, and job satisfaction.
• The use of participation is not a sure means for
improving employee performance.
 Representative participation

• Workers are represented in small groups of employees who

participate.
• Power is redistributed putting labor on equal foot with the
interest of management and stockholder.
• Two major forms :
• Work councils.
• Board representatives.
• Overall influence on working of employee is minimum,
although it increases the motivation and satisfaction of the
employees doing the representation.
 Work Councils
• Are the groups of nominated of elected employees who must be
consulted when management makes decisions involving personnel.
• To reduce workplace conflict by improving and systematising
communication channels.
• To correct market failures by means of public policy.
• On 22 September 1994, the Council of the European Union passed a
Directive on the establishment of a European Works Council (EWC)
or similar procedure for the purposes of informing and consulting
employees in companies which operate at European Union level.
• The EWC Directive applies to companies with at least 1,000
employees within the EU and at least 150 employees in each of at
least two Member States.
 Board Representatives
• These are the employees who sit on the company’s
board of directors and represent the interest of firm’s
employee.
• Typical duties of boards of directors include:
• Governing the organization by establishing broad policies
and objectives;
• Selecting, appointing, supporting and reviewing the
performance of the chief executive;
• Ensuring the availability of adequate financial resources;
• Approving annual budgets;
• Accounting to the stakeholders for the organization's
performance;
• Setting the salaries and compensation of company
management.
 Quality Circle

• Voluntary groups of employees who work on similar

tasks or share an area of responsibility
• They agree to meet on a regular basis to discuss &
solve problems related to work.
• They operate on the principle that employee
participation in decision-making and problem-
solving improves the quality of work
 How Do Quality Circles Work?

• Characteristics
• Volunteers
• Set Rules and Priorities
• Decisions made by Consensus
• Use of organized approaches to Problem-Solving
How Do Quality Circles Work?

• All members of a Circle need to receive training

• Members need to be empowered
• Members need to have the support of Senior Management
 How Can They be Used in an Organization?

• Increase Productivity
• Improve Quality
• Boost Employee Morale
 Problems with Quality Circles

• Inadequate Training
• Unsure of Purpose
• Not truly Voluntary
• Lack of Management Interest
• Without empowerment and support of the
management staff, circles will not have the resources
provided to them to be successful.
 References

• http://humanresources.about.com/od/glossarye/a/employee_inv.htm
• http://smallbusiness.chron.com/advantages-disadvantages-employee-
inv.pdf
• University consulting alliance by Robert Bullock, Scontrino-Powell
• http://www.authorstream.com/Presentation/karthikasenthil-219969-
employee-involvement-tqm-education-ppt-powerpoint/
• http://management-
class.com/courseware/int_mgmnt/mcshane/ppt_ch09.pdf
• J L Cotton, Employee Involvement: Methods for improving Performance
and work attitude (Newbury Park, CA: Sage publication,1993), pp. 129-
30, 139-40.