hrm - excel books - chapter 24

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    PARTICIPATION

    AND

    EMPOWERMENT

    EXCEL BOOKS24-1

    24Chapter

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    ANNOTATED OUTLINE

    24-2

    INTRODUCTIONParticipation has a unique motivational power and a great

    psychological value. It promotes harmony and peace between

    workers and management. Workers participation in managementaims at improving the quality of working life and thereby secure

    cooperation and commitment from workers.

    Participation And Empowerment

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    An instrument for establishing harmonious industrial relations

    A device for promoting solidarity among workers

    A way of tapping human talent by encouraging workers to come out with ideas

    and suggestions

    Ameans of motivating workers and obtain the best from them

    A humanitarian act, elevating the status of worker in the society

    An ideological weapon to develop self-management

    Workers Participationin Management:Different Views

    Participation And Empowerment

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    WPM is generally interpreted in four different ways

    Sharing information with workers

    Joint consultation prior to decision making (workers consulted,

    taken into confidence, suggestions invited to solve an issue)

    Sharing information, offering participation and involving workers

    in the joint decision making process while solving work related

    problems.

    Involving workers in all strategic, policy and operational issue,

    treating them as equal partners with equal voting rights and

    encouraging workers to self-manage and self-control activities.

    Formsof Participation

    Participation And Empowerment

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    Government Policy TowardsWorkersParticipation

    The participation of workers in management is not a novel idea,

    imported from outside. It has native flavour and is being favoured by

    corporate houses in India even before Independence.

    Mill committees, of course, were there to take care of workers'

    grievances. The Royal Commission on Labour recommended the

    establishment of a joint consultative machinery for settling

    disputes between labour and management.

    The Industrial Disputes Act, 1947 created a formal mechanism

    through the Works Committees to resolve differences betweenlabour and management over matters relating to conditions of

    work.

    The Second Five Year Plan advocated the setting up of Joint

    Management Councils

    Participation And Empowerment

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    Joint Management Councils 1958

    Objectives

    Promote cordial industrial relations

    Improve operational efficiency of workers

    Provide welfare facilities to workers

    Educate and prepare workers for meaningful participation in organisational matters

    Criteria for setting up JMCs

    The unit must have 500 or more workers

    It should have a fair record of industrial relations

    It should have a well organised trade union, affiliated to one of the centralfederations.

    Both management and workers should agree to the setting up of such a unit

    Evaluation

    Failed to make much headway due to unenthusiastic response from unions andworkers

    Management, on the other hand, was mentally reluctant to share ideas and powerwith workers in a meaningful manner.

    Participation And Empowerment

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    Participation And Empowerment

    The idea of workers assuming the role of a board member came

    into being in 1970s. The scheme required verification of trade

    union membership, identification of the representative union and

    the selection of a worker director who is chosen out of a panel of

    three names furnished to the government by the representative

    union within a prescribed time period.

    Shop and joint councils gained popularity from 1975 on wards.

    The joint council would be constituted, comprising of

    representatives from both management and labour, for a period

    of two years.

    From 1990 on wards, a three-tier participatory scheme as

    proposed: giving participation to workers at three levels: shop

    floor, enterprise and board level.

    Government Policy TowardsWorkersParticipation

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    Participation And Empowerment

    Evaluation

    The various schemes of participation have failed to deliver

    satisfactory results due to reasons such as

    Employer's reluctance

    Workers' apathy

    Illiteracy( workers not fully prepared to face the challenge)

    Lack of knowledge

    Inter union and intra union rivalry

    Lack of support from government

    Government Policy TowardsWorkersParticipation

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    EffectiveWorkers Participation InManagement

    In order to make the scheme more effective, certain conditions

    should be satisfied

    Managerial attitudes

    Union cooperation

    Meaningful participation

    Workers' attitudes

    Participation And Empowerment

    The scheme, however, proved to be a big hit in some well-known

    public and private sector organisations (such as TISCO, BHEL,MARUTI) where both management and workers were willing to

    invest their time and energies in ensuring the success of the

    scheme.

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    Participation And Empowerment

    WPM: MARUTI WAY

    Minimise distinctions between employees

    Promote teamwork and employee involvement at all levels

    Meet unions regularly to clarify things

    Exchange facts openly

    Encourage employees to come out with suggestions, ideas Allow employee participation in equity

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    Empowerment

    Participation And Empowerment

    Giving employees the authority to make decisions and providing

    them with financial resources to implement these decisions is called

    'empowerment'. There are four essential conditions necessary for

    empowerment to gain credibility and acceptance at various levels in

    an organisation:

    Participation

    Innovation

    Information

    Accountability

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    Alternative Approaches ToParticipation

    A. Quality Circles

    Participation And Empowerment

    A quality circle is a small group of employees who meet periodically

    to identify, analyse and solve quality and other work related

    problems in their area. The main features of a quality circle may be

    stated thus: Voluntary group

    Manageable size

    Regular interaction

    Own agenda

    Quality focus

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    Objectives

    24-13

    Participation And Empowerment

    Objectives of quality circles

    Improve quality of service/product

    Satisfy psychological needs of employees

    Utilise human talents and skills fully through self expression, participation Improve quality of working life

    Pave the way for cordial industrial relations

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    Participation And Empowerment

    Struture of a quality circle

    Quality circle members

    Quality circle leader

    Facilitator Steering committee

    How quality circles work?

    Identify problems

    Analyse problems

    Recommend solutions

    Alternative Approaches ToParticipation

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    Why Quality Circles Fail?

    Participation And Empowerment

    Inadequate preparation, and consequently, poor presentation

    from members

    Poor training given to workers

    Interference from management

    Picking up favourites to fulfil the agenda fixed by management

    Trying to use quality circles to meet short term, quantifiable

    goals

    Quality circle leaders not fully qualified in terms of experience

    competence

    Inadequate facilities extended by management

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    How To MakeQuality Circles Effective?

    Participation And Empowerment

    Suggestionsforeffectiveuseofqualitycircles

    Obtain managerial support and involvement for the programme.

    Identify goals for the programme and evaluation criteria.

    Do not expect the QC programme to solve all problems in the organisation. Make sure managers realise that any changes will take time.

    Inform all employees about the philosophy and goals of the programme.

    Keep the programme voluntary.

    Select group members based on their technical expertise and their supportof the programme's goals.

    Prepare individuals for their new roles in a participative culture.

    Provide training for managers as coordinators.

    Offer training for support staff who will serve as facilitators.

    Start with a pilot test of the programme in a supportive department.

    Implement the suggestions made by employees.

    Give recognition for employees' efforts.

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    B.Quality OfWorking Life

    Participation And Empowerment

    It is the degree to which members of a work organisation are able to

    satisfy important personal needs through their experiences in the

    organisation.

    Alternative Approaches ToParticipation

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    Participation And Empowerment

    Majorissuesinqualityofworkinglife

    Pay

    Benefits

    Job security

    Alternative work schedules

    Flexitime Staggered hours

    Compressed work week

    Job enrichment

    Autonomous work groups

    Occupational stress

    Workers' participation

    Social integration

    Work and total life space.

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    Howtomeasurequalityofworkinglife?

    Participation And Empowerment

    Turnover data

    Morale surveys

    Number of grievances handled

    Absenteeism data

    Performance criteria

    Personal interviews carried out from time to time

    Obstaclestoqualityofworking lifeprogramme

    Managerial attitudes

    Union's attitudes

    Cost considerations

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    Improving thequalityofworking life

    Participation And Empowerment

    Better employment conditions governing employee safety, health and

    physical environment

    Equitable rewards in terms of pay, benefits, incentives and services

    Job security

    Enhancing the self-esteem of people

    Participative climate and team spirit

    Training to employees, managers and supervisors

    Autonomy to draw resources and deliver results

    Recognition for work done

    Job design and job enrichment

    Open and transparent management style

    Atmosphere of trust and open communication.