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7/29/2019 Employee Participation in Management
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Employee
Participation in
Management
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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.
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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.
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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
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scope
Information Sharing
Sharing Decision Making
Self Control
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Significance
Higher Productivity
Greater Commitment
Reduced Industrial unrest
Improved decisions
Human resource development
Reduced resistance to change
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Levels of EPM
Informative and associative participation
Consultative participation
Administrative participation
Decision participation
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Forms of EPM
Collective Bargaining
Work Councils
Joint Management Councils andCommittees
Board Representation
Workers Ownership of enterprise
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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
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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.
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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
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Strategies for Participation
1. ESOP
2. Quality Circles
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ESOPs
A type of tax-qualified employee benefitplan in which most or all of the asset are
invested in the employers stock.
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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.
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THANK YOU