An employee-involvement programme relates to the participation of employees in management functions.
Employees and the management jointly perform the activities. The employee-involvement programme has programmes other than participative management.
For example, participative performance relationship, representative participation and so on. Employee involvement aims to utilize the maximum capacity of employees by mutually encouraging them.
Involving employees at decision-making levels, giving them more autonomy and encouraging them for better performances help utilize the entire capacities of employees.
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It makes employees committed to the organization and helps them to be more productive. The employee-involvement programme includes participative management, representative participation, quality circle and employee stock ownership plans.
The motivation theories such as hygiene theory, ERG theory, equity theory and reinforcement theory are applicable under employee involvement programmes.
Employee Involvement Program
1. Participative Management:
Participative management refers to the sharing of decision-making power by employees with the immediate superior.
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The main theme of participative management is the employees-management decision-making body.
Since the management has a different ladder, the relationship of the immediate superior with his subordinates is strengthened at the decision-making platform.
Participative management may take different forms in different organizations. The essence of participative management is that employees’ interests are served.
Their involvement is encouraged to develop work culture. The participative functions are also helpful to management because a manager cannot be fully aware of the technicalities of each and every function.
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The employees’ activities are discussed by the management at round table discussions. The management can understand the problems of employees only at the latter place.
Employees have to consult other employees for decision purposes. Participative management provides an opportunity of commitment development. It gives intensive rewards to employees as they have developed interesting and meaningful job satisfaction.
2. Representative Participation:
Representative participation is practised when all the employees cannot participate in the decision-making process.
A small group of employees who represent all the employees is given the power of participating in the management.
Some selected employees who are specially qualified participate in management practices. They know all the problems of the employees as well as the technical problems of the organization.
These groups of employees are given some specific names such as works council, work committees and so on.
They are necessarily consulted by the management. The elected or nominated members of the work council are fully aware of their problems.
In some organizations, these committees are only informed about management decisions. They are given due regarding in other organizations while the decision-making processes are in progress.
Many organizations in India have developed a very effective form of representative participation wherein they are asked to sit with the board of directors for taking certain decisions of the organization.
They are known as board representatives. Shareholders’ representatives and employees’ representatives as well as government nominees are given due regard in board meetings.
In spite of their best efforts, participating representatives are unable to perform motivational activities.
These employees may get a feeling of recognition, while other employees are not recognized in management. Motivation is least possible in representative participation.
3. Quality Circle :
A quality circle is a group of employees who discuss the quality problems, cost control and problem solution propositions.
It includes employees as well as the supervisor. The solutions are studied and analyzed to make them more effective.
Employees seek feedback from the persons concerned about the quality and its acceptability. It is a research-like technique to understand problems, diagnose problems, collect information and data, analyze and interpret, find solutions and review solutions before implementation.
The impact of solutions on quality control is reviewed from time to time. The employees suggest whether the productivity can increase at the given quality and standard.
A quality circle is formed in big organizations in India wherein expert engineers are assigned the job of deciding on a particular level of quality.
Quality management has become a specialized job these days in India. It is spreading to new firms also.
4. Employees Ownership :
Employees are allotted shares in lieu of a cash bonus in many industrial houses. The employees’ ownership plan is the company’s benefit plan.
The employees get ownership and the right to appoint their directors. A sense of belonging is developed.
They have job satisfaction and work motivation. Employees are made to realize that they are the owners of the company.
Many business houses in India have started issuing bonus shares to their employees who are given the authority and power of a shareholder.
The confidence and credibility of such employees will increase. They feel proud of being associated with the company.
The organization’s image, employees’ satisfactions and performance will increase on account of employees’ ownership programmes.