Employee Participation in Management

Embed Size (px)

Citation preview

  • 7/29/2019 Employee Participation in Management

    1/16

    Employee

    Participation in

    Management

  • 7/29/2019 Employee Participation in Management

    2/16

    What is EPM ?

    It is a system of communication

    and consultation, either formal orinformal, by which employees of an

    organization are kept informed about

    the affairs of an undertaking and

    through which they express theiropinion and contribute to

    management decisions.

  • 7/29/2019 Employee Participation in Management

    3/16

    Elements of Participation

    1) Mental and Emotional involvement ratherthan mere Physical activity

    2) Initiative, Knowledge, Creativity andIngenuity in the objectives of Organization.

    3) Encourages people to share Responsibilityfor a Decision or Activity.

  • 7/29/2019 Employee Participation in Management

    4/16

    Objective

    Increase in Productivity

    Giving employees a better understanding

    Co-operation for industrial peace andharmony

    Satisfying the employees urge for selfexpression

    Improve quality of work life

  • 7/29/2019 Employee Participation in Management

    5/16

    scope

    Information Sharing

    Sharing Decision Making

    Self Control

  • 7/29/2019 Employee Participation in Management

    6/16

    Significance

    Higher Productivity

    Greater Commitment

    Reduced Industrial unrest

    Improved decisions

    Human resource development

    Reduced resistance to change

  • 7/29/2019 Employee Participation in Management

    7/16

    Levels of EPM

    Informative and associative participation

    Consultative participation

    Administrative participation

    Decision participation

  • 7/29/2019 Employee Participation in Management

    8/16

    Forms of EPM

    Collective Bargaining

    Work Councils

    Joint Management Councils andCommittees

    Board Representation

    Workers Ownership of enterprise

  • 7/29/2019 Employee Participation in Management

    9/16

    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

  • 7/29/2019 Employee Participation in Management

    10/16

    Workers Ownership asTurnaround Management

    In this, the workers can provide guidanceto existing management or serve as

    interim manager when existingmanagement has been compromised orcrisis exists. Often a new face canbecome a catalyst for resolution of

    previously hardened positions.

  • 7/29/2019 Employee Participation in Management

    11/16

    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 makingDelay in implementation

  • 7/29/2019 Employee Participation in Management

    12/16

    Strategies for Participation

    1. ESOP

    2. Quality Circles

  • 7/29/2019 Employee Participation in Management

    13/16

    ESOPs

    A type of tax-qualified employee benefitplan in which most or all of the asset are

    invested in the employers stock.

  • 7/29/2019 Employee Participation in Management

    14/16

    Quality Circle

    Concept or Technique first originated inUSA

    High Quality at Low Cost

    It includes Teaching Employees GroupCommunication Skill, Quality Strategies &Measurement and Problem Analysis

    Technique.

  • 7/29/2019 Employee Participation in Management

    15/16

  • 7/29/2019 Employee Participation in Management

    16/16

    THANK YOU