PARTICIPATORY MANAGEMENT: A CASE STUDY IN A HIGH TE<sH BRAVLLAN PLANT

LILIANA N. HOLTZMAN DE GARCIA, SILVIO R SOUZA TAVARBS, LIDIA SEGRE.

Abstract - In this work, the implementation of Partiupalive Maoegement Ph4) in a high-tech chemical plant recently instdkd inRio de Jmcim,Brazil, is analyd. This industrial company started with an authoritarian manegemcnt model and latcr adopted Participative Uanagement along with a Total Qualay progfam, aiming at changmg the hierarchical structure, at developing a coopcrativc environment and at improvias human relations. It could be observed that in traditiondly authorituian c-, these changes create Contticts. The conflicts emerged Dom the lack of clear SmegieS for promoting thc ntcess(LIy cultural changes at all hierarchical levels. One can conclude that the implementation of PM is affcctcd in cases of crises due to a tendency to apply punishment and authorhian measures. It IS also concluded that the workefs participation is restricted to the search of o p " o d cooperat~on on the shop k o r . king excluded from any higher level of participation. Moreover, the lack of an efktive change in organizational culture may turn participatory management into a kss evident conid m e c l " than conventional managed methods, but also in an for improving productivity.

INTRODUCIYON

The Brazilian Society is undergoing a 111 process of social, tcoMlmic and political changes that havc somehow influenced to some extent the way orgaoizations use to work.

Most of the firms within dynamic sectors of the Brazilian industry are implementing projects of industrial modernization to face new competitive patterns as well as to cope with an increasing demand for the partiapation of the workers.

As a result of the Governments National Program for Industrial Productivity and Qualay ("PBQP"), many companies havc been implementing new forms of team work organization, coupled with a mew philosophy aimed at enhanciag personnel within a fnuncwork of participatory inkmention in compauics.

Participation of the workers in the impkmcntation of a given company's goals is designed to foster productivity peaems and improvc thcir competitive advantages on domestic as w e U as in foreignmarketS.

Ptuticipatory management is one of the key humau fesources policies being adopted by Brazilian firms in industry and services within this process. This new approach suggests that under Catain &w" and timils dcfincd by management, workers

would be given autonomy to take decisionS in diffetent matters concerning the process of produetion itsclf[l].

The basic aim of participatory management is to achieve greater productivity and qualay standards through increasing levels of rtsponsibdity and self-h-ent of the worlrcrs in their daily environment 121. According to such a philosophy, all members of the orgaoization can easily get access to information therefore rendering easier the exchange of experiences and know-how bctwtcn different sectors and hierarchical levels. Practical know-

of the whok organization through such an cxchangc.

As a profess, new participation is not only conwmed by the structural fsaors such as Organization design, but increasingly by the cognitive. motivational and cultural dimensions of the human resources in the company. These sets of factors can work &pendently from OM another. but as participation increases they are likely to be modified and further integrated (31.

how informally Bccumulated can be integrated into the procedures

The involvement and cooperation of workers are all pre requisites to achieve better operational results and increased competitivc advantages, sincc they are a core element of parhcipatory mansgement. To gather information on the complex dynami~ of implementing participation, a survey was carried out in a Brazilian chemical plant in 1W. This company was facing three great challenges.

Firstly it had to s u c c c s s f ~ come to implement a techndogical transfa in a brand new field of chemical process. Secondly. it had to d higher quality pattems required by its c h t s in two year period in order to achieve this gods. At the same time the company undertook a major reorganization inkgrating the new "participatory" philosophy. Interesting to note that such an effort was conducted in a very traditional environment.

The survey was canid out in a chemical plant of catatysts recently set up in Rio de Janeiro. Two main factors sccm to havc dctcrmined this kind of investment fustly, the increase in impor& of catalysts for the Heavy Cracking Program initiated by the Brazilian Petroleum Company pebobfk) in 1981; and secondly, as a response to ht" strategy of i n c d self-rdiancc in catalysts.

Thefactorywas planocdin1985andstartcdopcratingin 1990. A tripartite model provided the ffnaaeial and tcchwlogieal means for the plant, thc !ht of its kind in South America ststc owned Petmbdsand aDutch Chemical fm participatad each with a 40% share along with a private Brazilian company for the remaining 2Wh.

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As a fm result of this agreement a major technologid transfer was undertaken in 1991. The endeavor was made possible thanks toahlshlycapableenginee~g staffin the Research Unit of Petrob& (CENPES) and to the direct involvement of the Dutch Company.

With the new technology in hand the X Company is actually able to provide consultancy to other chemical firms engaged in the same type of production. It can also p r o v i d e techaological support and adapt production to the specific need of this clients.

When the plant started the opemon in 1990 its staffwas composed of 400 employees. However, by the end of 1991,50 of them had been fired. At the present, thirty percent of the personnel is oompostd of tcchniciclns with a university degree; 5 of them have a mastefs degm in engineering (in Brazil this corresponds to seven to eight yuus of university education) and one employec holds a Ph D. in chemical engineering.

In its first two years of existence the company had a heavy organizational structure with 4 dinctors; 8 intermediate managers and 44 supervisory posts. Following a process of redesign of functions and manage* activities in 1991 the company now operates with 3 directors; 6 manegers and only 17 supervisors.

The process of 0rganiZatom.l restructuring shortly followed the end of a fmt cycle of Bccwnuletion of technological capacity and corresponded with a ulmmilfnent to the National Program on Quality and Productivity (PBQP). This entrepreneurial initiative was motivated by the need for higher quality standards and cost reduction from a less costly, more active operational structure. To meet the first objective the company introduced the TQC.

THE TOTAL QUAurp C0"ROL (QTQ PROGRAM

In its second year of operation, the company decided to engage in P TQC Program which increased the level of motivation of its personnel through a series of Conferences and video exhibitions featuring new production p r d u r ~ s . . J ~ I Febr~ary 1992 a special budget was allocates to provide for training. Faced with financial contracts, the company chose to t The survey was carried out ingrain under TQC lines only the top executives, which aHenvards were asked to design and manage a program for the whole of the shE This was the top down approach favored by the board of directors. A consultancy fm was hind to give a oneweek senmar. In March 1992, a selection process was lauoched to choose coordinatofs and leaders among the supervisorY levels. After the training period this selected p u p started with a motivational program on TQC targeted to all employees of the fm.

In April 1992, this kading group had already accom~hcd their task of developing the didactic support for the Campaign on TQC which 'included the material for short courses for all employees. Before their full implementation, all the members of the b d of directors and all managers attended tbesc courses which were, later on, given to all plant supervisors. Five months later, all the supervisory levels had attended the c o m s and the program had reached all workers in the company.

Jnterviewing with workers of different hierarchical levels of this company evidcntiatcd that, despite the low budget allocated in this partieulat prognun the pasoMel had achieved fairty a high degree of undcrstaudii. Both on the basic coIlccpts and on the aimsofthe TQC progmm. A great part ofthe success can th&m be attributed to an increasing involvement of the managed statT supported by a team of highly competent prof&&. WO- for the Dcpastment of Human Rtswrocs tk tcam was compod by a psycholw and two pmf&onals, one in d cO"unicBtiOn and another in the field ofapcdagogy. One can say that such and unusual combidon of- in one ltimr has contributed to a thrtc dimensional appmch to problem putting an emphasis upon p u p and social interaction aad progressive learning.

The SucceSSful results of the TQC program e n c o w the directon to take further steps to implement a ParticipatorY Manasementprogrem.

PMP was fwtered on a voluntary basis. The technical director himself made a cycle of conferences to the board of managers. Afterwardsthis cycle was prosressively extended to all employees, While the TQC project muntd upon a methodology to dm its basic concepts and to provide an extensive tfaining, most of the activities in PMp were conferences and group worlring sectionS. The whole PM project was acl'udy limited by a lack of iinandal resouffes and by a weak managed adherence when implementing the program.

The PhlP was based on 4 premises:

a) participatory management should be company's wide involving all sectors and hierarcbid levels. Such a braad view of the Program implied the development of flexible procedures to promote consensus and to implement decisions on the right level at the right time.

b) the orgmizational design of thc fm should adapt ta this philosophy in order to establish a hierarchy of decisions instead of the usual hierarchy of information.

c) diffusion of information within the finn was a top priority so as to provide the necessary support for taking decisions and to promote a transparency effect for the increase of participation. Weekly meetings wac held by managers and employees to dcal with both techniealand human relatom matters.

d) improved COmmunicBtiOn is a key element to the process of intcsrsting the difFcmt functional groups within the firm. Thus a Communication Group was created whose task was to develop strategies and khniques to improve formal communication

between employees and their second higher level supervbrs.

In spite of the pasonncl cngagemcnt of the Ttchnical Director to dfluse the principles of Participatory manegement this project was not as s u d d as the TQC's program.

Resistance to the new pattern of industrial rcktions was evidentiated in several manager's behavior. Little time was allowed to the implementation of the project. Changes in awiadcs did not occur as rapidly 8s expected and hindered the development of a coherent human resoufces policy bascd on m n . A brief analysis of the barriers to the PMP is given in the next section.

thrwgh in-house o m bulletins and systemabcally ' m e e t i n g s

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As other chemical plants in Brazil the X firm started

ofdiredorsandmostmaoagcrs belonged tothe stafFofstatc

During the military government pctrd chemical complexes were considered "national security zones" and were thus suwto a spcufic kegisMon. "he managerial cuhurc developed in this sector empathizes a structure of power LLssociated to a rigid

relative position in this st" rather than thit technical

opersfing under a rather authoritarian menagerial pa". Au its

companiesthatweremasmihtary unitp untilrecentyears.

hierarchy. "status" are soCidly aufibutcd to people after their

COI t lpCtUK%orksdash ip~ .

A s o f k n f d i n a u t h ~ c u l t u r t s s u m a n d

were whik working rulcs and organizdonal pnmdurcs revealed theeKistence ofdifferent modes ofpunishment

managerial M t e n d to compensate the environmntai risidity by developing patemalist auitudes towards cmployces. Thus, job desaiptions in the X firm show how limited w o w s aufibutions

Other signs of authorit" are evidenced by the lack of down-top communication a n d t h c w c a k f l o w o f i n f i i between the different hierarchical levels. The origid organizetional dcsign was in fad a h h d i c a l pyramid withpknty of intermediate levels.

APM program in this context requires deep changes in the formal struclurc as well as in s o d nhtions and individual attmdes.Thusthe- badtgrwndwasinthebeginniag animportantbaniatopM.

In addition to'this historifal handicap limits to the program cm be found in some aspects of its implementntion. As previously mentioned the PM project was not supported by a shntcgic plaaning and could not count on any financial support Contrarily to the TQC' Program thcrc was ncitha a nal "tcam" to implemented the project nor extensive pedagoslc and co"Unicati0nal suppor&.

When interviewing workers on PMP one mlizes they can hardly idcnt@ the aims of the program and often misunderstand

Workers also complained about not knowing exBctly what 1s some besiccoooepts such as autonomy

expeded fbmtbcm in this newmanagerial*phy.

and w-

On the other hand and maybe still BssoEiBtcd with the kdr of stmkqgc planning, cultural changes did not happen at the cxpcctcd pace. Individual attitudes and behavior did not evolve as expected specjelly among top and inwmedhk ma~gers. This led to the emergence of two other barriers to the ditkion of PMP: the

c o n t r a d i i behavior of and supavisors in the initial phase of project when b u i l d ~ up confkhce on the viability of ="n twasamos t s t a rchcd goal.

t a c i t ~ s i s t a n c e o f s o m e ~ g r o u p t o t h e p r o g n u n andthe

* .

The diffusion of the PMP was also hindered by some deflcieacies in the process of communication which had to cwnt much more on the personnel perticipation ofthe stafFrathcr than on didecticmaterial.

PaIiicipmy messages wen then o c a s h d y t"itted by sup~lisors and managers who until very m t l y wwt marked by their authoritarian behavior.

Besides that, in a pakmabt environment, an "open doors policy" as implemented bythex fmcan easily turn a "prof&iwat dialogue" into a confessional practice which permits an extensive manipulation of individuals and groups within the fm.

F d l y , in a changing environment coherence between proposals and actions is an essential element to provide codience and avoid "set backs". However, in at least three oc+ons, me~gers and supervisors failed to obey some basic pranrses of PM as they ref& to negotiate with workers and hindered theireccesstoinfomzation.

As a whole one can say that PM succeeded in promoting a higher level of industrial democracy in the X firm by implcmenting formal and informal channels of communication and by establishiug s o m c c o ~ p r o c a d u r e s .

A greater dcgru of autonomy to takc decisions on the working stations also promoted a greater involvement of workers which led to better operationai results in spite of the clitid period the fm was goillg though.

CONCLUSIONS

Participatory management has often been coilsidered a penacca for firms that are promoting orgmhthnd restructuring changes in a challenging environment marked by the emergence of a new competitive patterns and the introduction of new technokyes [4].

However. even in itctntly installed fms, this new managerial philosophy has to cope with the previous organizational culture of managers and workers. This cultural heritage might have been forged in rstber wthoritarian contexts. In this case the P M tends to generate conflicts, nsiStancc and mistrust among functional groups within the firm.

Strategtes for the unplementation of SuceeSSful P M have to take in consideration thc pro& of "gem and workers. The

overcome latent barriers to CommunjCBtion and integration. program also needs the SuPpMt of group dynamics so as to

The X firm succded in attaining increased degrees of industrial democracy through a new pattern of human reiations bascd on dialogue; negotiation and autonomy. It also f d the involvement and commitment of workers to the operational goals of the fm. H o w e r tbc participahon of workcrs is still a limitcd pmcess. WorLers tend to give suggestions and take decisions at the operational level but do not feel encouraged to broaden their level of participstion.

As a m a m of faathe participation of workers seems to be constantly threatened by their fcsr of p l " t in cea of e m .

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REFERENCES

[l] LMHARTp. 1990: "Que camhios QL h anpcua?" sociobgia dclrrdbqp, nuevaepom all, inviemo de 1990-91.w

[Z] CARVALHEIRA DE MENDON-, 1984: PSrlieipaFlb

25-48

131 LOVERIDGER 1980: "WbabispmWpatb?amiewoftbe lit"andwm- * problcms".Britiph Joumal ofindustrid telaaions, 18 (3) 1980

[4] PETERS, T. 1987: Thiiving on Cbms -AHandbodt &om a MensgancntRcvolution.AXnoff.

naorg"#b - . U " ~ ~ a w r r e m A m d a m O t o r . E d . ~

.

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