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Employee Participation and
Retention Management
CHRM
Week 7
Major topics
The depth of participation
Direct and indirect participation
Trade unions and collective bargaining
High commitment HRM and retention
managment
What do we mean byemployee participation?
Participation
Participation is the opportunity of employeesto influence
management decisions.
Employee participation
Direct Written and
electroniccommunication
Meetings withmanagers
Team briefings
task-based groups
attitude surveys
Financialparticipation: PRP
Indirect(Via employeerepresentatives)
Trade-unions
Work councils
The context
60s: job enrichment and enhanced workermotivation
70s: industrial democracy, workersrights
80s: employee involvement andcommitment
90s: consolidation of employee participationtechniques , high
commitment HRM
>2000: legal re-regulaton (EU directive),
best practice HRM
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The depth of employeeparticipation
Source: Marchington and Wilkinson 2005Information
Control
Codetermination
Consultation
Communication
Indirect participation
The Philosophy of IndustrialRelations:
The conflict of interest betweenemployers and employees needs to
besolved through negotiations.
The first six most importanttrade-union activities
HUNGARY
1) Salary increase
2) Job security
3) Welfare provision
4) New workplaces
5) Workload and work
methods6) Training
International Average
1) Job security
2) Salary increase
3) New workplaces
4) Welfare provision
5) Health and Safety
6) Decrease ofworking time
(Mak, Novoszth, Verb, 1998)
Collective Bargaining
Definition:
Collective bargaining is the processthrough which
representatives of
management and the union meet tonegotiate a labour agreement on
theconflicts related to the allocation ofresources linked to
employment.(wages, working hours, welfare
provisions)
Collective Contracts
Percentage of employees covered by acollective agreement:
Austria: 98%
France: 95%
Germany: 62%
Hungary: 25%
Japan: 21%
USA 18%
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Work Councils
1) The right of collective decision making:
welfare provisions regulated in collective contracts2) The right
to give opinion:
Reorganization, personnel information system, trainingplans,
yearly holidays, new methods of workorganization, new performance
standards
3) The right for receiving informationeconomic situation, new
profile, investments, wages,
employment, working schedules, working conditions
Building high commitment HRsystems through direct employee
participation
Winning Commitment
fostering communion
helping employees self-actualize
providing interesting jobs
hiring people with similarity of values
employeeswelfare
two-way communication
job security
above-average rewards
guaranteed fair treatment (Dessler, 1993)
Elements of retention management(Best Practices by Pfeffer)
Employment security
Selective hiring
Teamworking
High compensation related to organisational
performance
Extensive trainingFlat organisation
Sharing information
Participation
Commitment
Involvement
Engagement
