Employee Participation In An Organization Revised

Running head: EMPLOYEE PARTICIPATION IN AN ORGANIZATION 1

Employee Participation in an Organization

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EMPLOYEE PARTICIPATION IN AN ORGANIZATION 2

Introduction

Employee participation is also known as employee involvement concept has today seen a

growing interest from various Human Resource management and scholars. Many organizations

are faced with the issues and challenges of empowering and managing their workers so as they

can actively participate in the decision making of the organization. In the current tumultuous

economic environment, the organization needs innovative and creative employees who can

embrace change, cope with the different market uncertainties, stimulate innovations and can take

initiatives. Many of the upcoming employees want to work in organizations that can adapt and

listen to their ideas and opinions actively. To accommodate the demands of the staff, many

organizations have given up their centralized control management with the hope that they can

promote decisiveness and flexibility and also a subsequent improvement in organizational and

individual performance (Jing, n.d.).

Employee participation concept takes different forms which evolve through the employee

involvement and participation concepts of decision making into contemporary empowerment

perspective. The empowerment idea involves the employees being given a certain degree of

flexibility and freedom that enable them to make some work decisions without the direct

involvement with the top ranking management. The management model disagrees significantly

with the traditional management methods that emphasize hierarchy, rigidity, and control. The

participation or involvement of employee immensely contributes to the way run their businesses

and make their decisions. The employee’s participation has both negative and positive impacts

on both the organizations and the employees. This paper will discuss the different forms of

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 3

employee participation and also will explain why the employee participation is essential and how

the employee involvement can be challenging (Jing, n.d.).

Forms of employee participation

In the organizational decision making the employees, participation creates essential value

in many businesses however how much or the level the employees should participate in the

decision making of an organization is controversial because there are employers who are for the

employee participation and others are against it. Some of the forms of employee’s participation

in the decision making of an organization include:

According to Jing, Board Level is a factor that involves the participation of employees in

important management board meetings on many issues, and it plays a vital role in protecting the

interests and wealth of the employees. This type of participation form assumes that the

representative of the employees can present all the issues, concerns and other problems of the

other employees to the top ranking management levels and encourage the members of the board

to create opportunities, changes, and incentives for the other employees (Jing, n.d.).

Another form of employee participation is participation through Co-ownership. The

management of an association can maintain and to create the involvement of employees in the

decision making of the organization by encouraging them to become partners or shareholders in

the business along with additional incentives that they will get, for instance, financial assistance

in case they need some and low-interest loans. Kozłowski (2013) believes that the approach

motivates the employees hence they can participate in the making of the business decision as

they are co-owners of the business and the decisions they make will be those that will earn the

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 4

organization and themselves profit. For instance, the telephone company I use to work in used

this approach to encourage employee participation and provide them with the overall motivation

in the organization (Kozłowski, 2013).

Participation through Suggestion Schemes is another form of employee participation.

Kaufman and Taras have also found that the managers that encourage employee participation to

come up with creative and innovative ideas that a lot of positive results for the organization, for

example, cost reduction, consumption of waste and energy, reward system, occupational safety

and health procedures and many others. Hearing the voices of the employees can add value to the

organization and can produce a healthy work culture and internal environment. For example,

Satyam, a technology, and communication company in the United Kingdom are known to be the

company that introduced national suggestion scheme that is called the "Idea Junction," where it

receives thousands of ideas annually from its employees, and the company accepts like a fifth of

these employee’s views.

The other form of Participation is through Job Enrichment. The involvement through job

enrichment offers the dedicated, motivated and hardworking employees chance to increase their

knowledge and utilize their decision making and judgment skills to handle the business problems

that occur every day. Shay has proposed "when the association conducts job audits of its workers

and extends job content while creating additional incentives and motivators to a current job

profile has turned out to be an effective method to keep the workers engaged with the decision

making of the organization. From my work experience, the substantial gigantic retails, for

example, Woolworths and Coles offer an assortment of Job Enrichment schemes to different

employees all over the association to propel their abilities and propel their professions with the

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 5

organization if they wish. This has prompted enthusiastic team who produce communication

skills which are of high level with the top level administration (Kozłowski, 2013).

Lastly is the Participation through Quality Circles. Kaufman &Taras (2010) state that the

quality circle is a five to ten individual group who are experts in a particular work area that

regularly meets to solve, analyze and identify problems that arise from the regions they operate.

This would expect any partner within an association, who is an ace with high measures of

participation in a particular field, can turn personal from the quality circle. This would be a

fruitful methodology for the association as it is a perfect method to recognize potential issues and

create ways to enhance working the general states of the association. Richard Goyder, the CEO

of Wesfarmers company, has shown the corporate monster utilizes this as one of its systems in

performance administration meetings which have been an essential device in enhancing the

function and quality of Microsoft (Kaufman &Taras, 2010).

Employee participation and empowerment

Before examining the impacts of the participation or involvement of employees in any

workplace, it is essential to define employee participation. According to Kaufman &Taras

(2010), the involvement of employees is the process in which the organization decisions are

shared among the people who are unequal hierarchically. The employee participation is

otherwise known as participatory management incorporates the managers and subordinates’

staffs in an organization sharing information to help in the decision making and problem-solving

in the organization. Moreover, employee participation is characterized all the more extensively

by Kaufman &Taras (2010), as consisting of two components. To start with is the declaration of

grievances or dissensions in a work setting by employees to the best administration of the

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 6

association. The other element is the participation of employees in the necessary leadership

procedures of the association. In this way, the participation of employee does include primary

leadership forms as well as the whole welfare of the employees. Most nations give strategies and

local laws to safe monitor employees from provocation and abuse. The exchange Unions have

for quite a while been the voice of employees in numerous nations (Kaufman &Taras, 2010).

Most employees voice their worry and abuse through their exchange associations. The exchange

associations have fundamentally changed the way employees are dealt with and take an interest

in the everyday administration of associations. As indicated by the Industrial Participation

Association (IPA), contends that aggregate voice of employees accomplishes what the single

voice would never do. Besides, IPA argued that portrayal is the establishment of an organization

that unites positive outcome to the business, and it makes the working environment more others

conscious and enlightened (Kaufman &Taras, 2010).

Rosen, Case, &Staubus (2005) contended that numerous organizations needed

appropriate components to discuss adequately with employees. This had both a conflicting and

consensual effect on most organizations since employees required the legal instrument to express

their grievances. Rosen, Case, &Staubus (2005) clarifies that employee participation could

prompt a beneficial impact on efficiency, quality and avoid the issue that would somehow or

another detonate. Hyman and Thompson explain that the absence of a compelling instrument to

deliver specialists issue prompt the formation of trade unions. The trade unions were viewed as

the best specialist to give influential voices as they stayed free of the business.

As per Rosen, Case, &Staubus (2005), distinctive office for specialists to express their

grievances turned out to be more perplexing and various. Millward recognized a few

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 7

methodologies that specialists used to express their grievances including through trade

association enrollment, portrayal, and acknowledgment, roundabout or delegate participation

instruments, for example, discussions; lastly, coordinate employee inclusion. As indicated by an

overview led by the WERS, trade unions have turned out to be less capable and unmistakable

voice channel for laborers. This is ascribed to the way that the enrollment of trade unions has

altogether diminished throughout the years. The report additionally demonstrates that joint

counsel and aggregate bartering has likewise reduced in ubiquity in numerous nations. The third

strand, which is employee participation/contribution, has turned out to be prevalent around the

globe. As indicated by Rosen, Case, &Staubus (2005), most organizations thought that it was

essential to include employees in their everyday central leadership exercises and running the

association. Human asset administration in many organizations found that employees end up

inventive and submit themselves to their work on the off chance that they are conclusively

associated with central leadership (Rosen, Case, &Staubus, 2005).

Throughout the years the participation of employee has affected the work environment

both negatively and positively. It is generally trusted that the involvement of employee may

influence employee commitment, job sanctification, and employee productivity to the

association. These variables fundamentally affect the way a company or an organization play out

their business. Rosen, Case, &Staubus (2005), additionally clarifies that employee participation

diminishes the chances of modern debate coming about because of poor correspondence amongst

the administration and the staffs. Decision-making processes improvement, an increment of

innovativeness, brings down managers' pressure and guarantees better utilization of resources

and time. The other section of the paper will discuss the positive impact impacts of participation

of employees in the workplace briefly.

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 8

Impact of employee participation in an organization workplace

The involvement of employees in an organized workplace is diverse and multifaceted.

The goals of the organization determine the determination of the most efficient employee

participation strategy. Various associations entrust their workers with the responsibility to carry

out vital roles concerning the skills and qualifications. On the other hand, some associations give

training to their employees to accept their duties and responsibilities which are delegated to

them. According to Zwick (2003), some associations give their staffs recognitions and rewards

for any work they perform diligently. All these techniques strengthen and improve the

communication between the top management and the employees of an organization. Some of the

critical impacts of participation of employees include employment commitment, employee

productivity, job satisfaction, teamwork and many others and some will be discussed below.

Among the importance of employee participation in the workplace is Job satisfaction.

Employees' job fulfillment assumes an essential part of the way they complete their obligation

and duty. Most employees leave their job since they feel not happy with their mission or job

portrayal. As per Zwick (2003), job fulfillment is pleasurable or positive passionate state coming

about because of the evaluation of job understanding. Most researchers consider job fulfillment

as the inconsistency between what an employee esteems and what the circumstance gives. Job

fulfillment is seen by numerous researchers as the level of an employee full of feeling

introduction toward the work possessed in the association. Employee participation and job

fulfillment have for a long time been coordinated by Human asset administration to improve

efficiency and create human capital Zwick (2003). Employees feel more satisfied and sure when

the administration believes their decisions that have the impact on the result of the business.

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 9

Through the employee, participation laborers have a chance of discharging their thoughts, stress,

and worries about the company. These guarantee that the employees end up happy with their

work and decisions that they make an association. (Lower, n.d. Clarify that fulfilled employees

has a tendency to comprehend and use the open doors they are furnished with by the association.

Through participation, employees winded up gainful, imaginative and focused on their managers.

Employees feel that they are valued and thought about a piece of the association. Human

Resource Manager at Scotchem contends that it is difficult to increase massive change without a

significant component of employee inclusion. As indicated by (Lower, n.d, most employees need

to do considerably more than just come to work and perform obligations that the administration

has guided them to do.

Employee participation makes a domain where the laborers can impact thoughts and

advancement to the administration. Inspired senior employees that cooperate with clients or

customers on an everyday premise regularly have more knowledge of what the client needs from

the association, concerns, and criticism. At the point when a supervisor makes a working

environment condition that urges employees to team up inventive, creative and coherent thoughts

through different gatherings or dialogs, get an unmistakable handle to what clients need (Rosen,

Case, &Staubus, 2005). Chiefs that settle on fundamental decisions without employee

contribution restrain their thoughts and may bring about poor results if the administrator had

thought about the employee's voice. Retail giants, for example, Coles and Woolworths utilize

this factor as a piece of their central administration intends to deliver a useful shopping

knowledge for their clients.

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 10

The other importance is the Employee productivity that is most organizations endeavor to

utilize and keep up beneficial employees in their associations. Useful employees concoct new

thoughts and systems to empower the association to get by in this turbulent financial condition.

As indicated by (Lower, n.d), profitability is an execution measure that incorporates both

proficiency and adequacy. Powerful and high performing "associations have a culture that

empowers employee contribution henceforth employees are additionally eager to get engaged

with the objective setting, decision-making or critical thinking exercises that outcomes in higher

employee execution" (Lower, n.d). Employee participation empowers present-day style of

participatory administration, fulfillment, raises employee profitability and brings down the

employee remuneration rates. Besides, employee participation energizes job fulfillment, which

expands profitability through bringing fabulous inspiration and working capacities now and

again of usage. Lower, n.d contends that participative atmosphere has more significant

consequences for laborers' fulfillment than participation in the particular decision. As indicated

by (Lower, n.d), individual asset strategies, which empower employee’s inclusion go for giving

laborers chances to have the way to get the proper aptitudes, a motivator to extend optional

endeavors and to have a contribution to decision making.

Employee participation has fundamentally influenced the efficiency of associations and

organizations all in all. As per an exploration led by the Workplace Representation and

Participation Survey (WRPS), organizations that have strong employee contribution are 17%

liable to perform superior to organizations that need employee inclusion programs in their

associations. The report additionally demonstrates that employees who work in organizations

that have proficient employee inclusion are happier with their job contrasted with different

specialists. Another examination led by Rosen, Case, &Staubus (2005) on more than 18 different

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 11

associations on the effect of employee inclusion and friend’s efficiency uncovered a similar

outcome.

A few respondents communicated their conviction that there was a connection between

employee contribution and execution result. For instance, Consultancy Company has an

employee inclusion component called "technique days" that furnishes employees with a

contribution to the crucial future arrangement of the association. At these 'Vital days,' the

organization enables employees to come in gatherings and talk about issues that extended from

advertising changes, mechanical changes and report their plans to a whole session that makes

additionally move on their discoveries. The report demonstrates that laborers in Consultancy

Company are happier with the administration than different organizations that have brought

together an arrangement of making decisions. Another organization that has taken the benefit of

employee association is HiFi Sounds.

At HiFi Sounds the administration urges the employees to make proposals on an entire

host of issues including staff enrollment, shop opening, and client mind administration. Another

organization that has profited from this program is Bet.com. Following preparation session

amongst employees and the administration, Bet.com chose to actualize wagers from clients over

the telephones. The aftereffect of that activity spared the organization thousands of pounds. From

this insight obviously, employee participation in the administration of organization enhances

profitability and employees' job fulfillment (Rosen, Case, &Staubus, 2005).

Employee commitment

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 12

Most researchers contend that employee commitment to duty regarding the objectives of

an association is principal for productive business. Kozłowski (2013) clarifies that employee

responsibility alludes to harmoniousness between the goals of the individual employee and the

association whereby the individual relates to and broadens exertion in the interest of the

objectives of the association. As per Kozłowski (2013), most employees confer themselves to

decisions and targets that they have partaken in detailing. Employees feel that they have their

claim objective and goal; that they have been effectively associated with a plan.

Employee contribution guarantees that specialists submit themselves to the duty and

obligations doled out to them. Kozłowski (2013) clarifies that employees present themselves to

objectives of association on the off chance that they are permitted to think of thoughts and

procedure for the association. Specialists play out their obligation not just because they should

do that, but since they have enthusiasm and responsibility towards the assignment. This must be

accomplished if organizations can step up and include employees in decision-making, objective

definition, and approach detailing of the organization.

As indicated by an examination by Zwick (2003) most employees were found to confer

themselves to organization objectives when they were effectively engaged with definition

process. The report additionally demonstrates that employees who were not adequately involved

in decision-making were less inclined to confer themselves to the objectives of the organization.

This unmistakably shows employee association assumes an essential part of the daily

administration and running of the association. Without legitimate component to confer

employees to the objectives of the organization, it would be hard for the association to meet their

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 13

goal effectively. The issue of employee conversing themselves to ventures and obligation

dramatically affects organization's effectiveness and work yield (Zwick, 2003).

Also, employee participation helps in better use of time and resources that are most

organizations are looked with the test of dealing with their assets and time to get the highest

yield. As indicated by Zwick (2003), assets incorporate employees, physical material and

financial capacity of the association. Numerous supervisors are given least assets to achieve the

most outcomes for the association. Dealing with the base assets requires advancement and useful

correspondence between the employees and the administration. This must be accomplished

through productive employee association component, which will guarantee, that every one of the

employees takes an interest in the decision-making process.

Lower, (n.d.) clarifies that employees are in charge of utilizing more than 90% of

organizations' assets and time. It is essential for the administration to include the employees to

think of compelling utilization of assets that will empower the association to spare the cost of

executing business. As indicated by Lower, (n.d.), employee participation guarantees that the

organization assets are all around used to give most ultimate benefit. As noted in an examination

led by Kaufman &Taras (2010) on Bet.com Company, employee contribution can altogether

lessen the cost of working together. The organization had a few sessions with employees on

ways they can enhance the methodology for taking wagers from shoppers via telephone. The

organization spared a ton of cash since the employees could find that a few clients could put

down wagers after the outcomes were known. The employees could think of development that

prevented clients from putting down wagers after the result was known (Kaufman &Taras,

2010).

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 14

Employee participation also reduces industrial disputes. Kaufman &Taras (2010) clarify

that employee association has fundamentally diminished mechanical question in numerous

associations. This is ascribed to better correspondence amongst administration and employees.

Most associations have given employees the flexibility to express issues that influence them both

in the work environment and at home. A few associations have gone above and beyond to

provide clinician to help laborers to manage work weight. This has substantially lessened the

instances of the strike in numerous associations around the globe. Most associations have

thought of technology that enables them to discuss individually with employees without

including trade unions.

At Weave Company, the administration gave a model of association where administration

effectively built an aggregate voice system which was less dependent on the trade unions. This

was an endeavor by the administration to give correspondence channel past association channels

through a revelation of organization and cooperation. Weave supplanted its conventional

quarterly association focused JCC with a month to month departmental gatherings. Another

organization that took a similar framework incorporates Southern Shoe EWC. The organization

concocted a methodology that enabled the administration to discuss adequately with the

employees straightforwardly instead of utilizing the association. The next gathering of

employees brought about low levels of truancy, better staff maintenance and efficiency change

(Kaufman &Taras, 2010).

Challenges of Employee Participation

Unlike the pros the drawbacks of participation of employee are plenty. In spite being the

best techniques of management in the organization, it also comes with some challenges such as;

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 15

One of the challenges caused by the participation of employees is that it accompanies

risks of security. Ordinarily, this additionally implies imparting necessary information and data

to a more significant part of employees. The vast majority of the data is expected to settle on

more firm decisions and is dependable of a delicate sort, and the organization may have a few

worries about the employees that are talking about it outside the association too. The more

individuals who think about delicate data, the higher there will be a risk of getting out (Kaufman

&Taras, 2010).

The other challenge is that of objections that may come from the union. There could be a

couple of complaints from the union too. Some labor agents are worried that the association

might utilize the participation of employees or program of inclusion that may discourage the

employees from using the free union portrayal. The law should likewise keep on stopping

organizations from setting up labor associations. It should also be an appropriate labor hone for

employees to have the capacity to set up programs that can utilize or even control a current one

with the entire thought of disappointing the endeavors of the employees so they may get

autonomous portrayal (Kaufman &Taras, 2010).

Another immense drawback that accompanies management authority is traditional all

employees wind up experiencing severe difficulties with regards to finding the refinement

between the employment levels and the administration. While expelling the characterized

hindrance between the administration and the employees, it happens to be a piece of the

administration and reason; the organization should assign the pioneers to dodge the potential for

vulnerability and turmoil of charge when the circumstances are testing (Zwick, 2003).

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 16

The other challenge is that of miscommunication in the workplace. Non-successful

utilization of communication, naiveté and poor decision-making abilities is a noteworthy

hindrance with an employee contribution. The more employees that have input and into

administrative decision making errands, more elevated amounts of communication are

fundamental to assure that choices are steady over areas of the working environment to ensure

consistency. Directors may discover it a test observing determinations and exercises with

employee contribution, for example, guaranteeing adverse outcomes and confining the potential

for tumult through miscommunication, gossipy tidbits bringing about an exercise in futility on

managing employee clashes and teach as opposed to utilizing an opportunity to complete

assignments and duties (Zwick, 2003).

The other challenge is of insufficient knowledge. An employee that can settle on more

decisions is recognizing to chiefs, anyway, it can bring about negative impacts. Hodgkinson

clarifies those employees who don't have adequate learning, capabilities, experience or skill in

particular business decisions can misconstrue the association's achievement or make interior

clashes in the business (Zwick, 2003). That is the reason employees can't embrace some decision

making parts as it requires aptitudes from a prepared and created chief. For instance, an

employee who works in the deals and showcasing segment of the association who wants to

collaborate and add to how the bookkeeping area of the association works will settle on poor

decisions in that field and will bring about different clashes with directors and different

employees inside the organization.

Lastly is the challenge that is brought by the Manager-Employee Boundaries. Zwick has

expressed through is discoveries, having elevated amounts of employee inclusion is a risk as the

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 17

line of specialist between the administration level and employee level can bring about obscure

((Zwick, 2003). Administrators may welcome the estimation of an employee association,

anyway, a trained structure with clear detailing duties are fundamental to dependability in

associations. An organization that enables its employees to endeavor to create thoughts and

complete significant errands or obligations without having the confirmation from the

administrator endeavoring obligations that are mainly allocated for businesses at administration

levels is a risk, no learning, and involvement with administrative aptitudes (Zwick, 2003).

In conclusion, employee participation is a framework which employees are urged to

utilize their ability and information to recommend strategies for changes in their work territory.

Subsequently, employee contributions assume an essential part in the accomplishment of any

associations. Also, despite the fact that employee association has different of an adverse effect on

the association, it determines that under specific conditions workers are more dedicated to

decisions and that better decisions are made if they are included. Employee inclusion likewise

increments collaboration and provide better exhibitions (Zwick, 2003).

EMPLOYEE PARTICIPATION IN AN ORGANIZATION 18

References

Jing, Z. (n.d.). The Challenges Faced by Employee Participation. The Emerging Industrial

Relations of China, 164-183. doi:10.1017/9781316335222.009

Kaufman, B. E., &Taras, D. G. (2010). Employee Participation Through Non‐Union Forms

of Employee Representation. Oxford Handbooks Online.

doi:10.1093/oxfordhb/9780199207268.003.0011

Kozłowski, M. (2013). Employee Participation in Profit and Ownership – Impact on Work

Efficiency. Comparative Economic Research, 16(1).doi:10.2478/cer-2013-0005

Lower, M. (n.d.). Labour law and employee participation.Employee Participation in

Governance, 149-169. doi:10.1017/cbo9780511780721.009

Rosen, C. M., Case, J., &Staubus, M. (2005).Equity: Why employee ownership is good for

business. Boston, MA: Harvard Business School Press.

Zwick, T. (2003).Works councils and the productivity impact of direct employee

participation. Mannheim: Zentrumfu

rEurop. Wirtschaftsforschung.

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