Employee Participation, Involvement

Implications for Employee Relations

Employee Participation

Long history in Personnel/HRM Distinguish Direct v Indirect Formal v Informal Scope ± limited/broad Level ± team/department/company Focus ± task/team/individual Changing emphasis ± Employee Involvement v Participation

Distinctions Salamon (1998) Industrial Democracy ± Worker control Employee Participation Influencing decision-making Employee Involvement Engage support. commitment and contribution . understanding.

Continuum of Employee Participation No Involvement Receive Information Joint Consultation Joint DecisionMaking Employee Control Source: Blyton and Turnbull 1998 .

Phases and Influence of Forms of Participation in UK Marxist Worker Control Pluralist Collective Bargaining Joint Consultation Employee Involvement Unitarist Downward Communications Task-Based Participation 1900 1920 1940 1960 1980 2000 .

Control Level Co-determination Collective Bargaining Consultation Communication Information Scope of Involvement .

Levels of Participation Worker Directors Collective Bargaining Works Councils Joint Consultative Committees Task-Based Participation .

Theoretical Contributions Unitarist .Human Relations/HRM Mayo ± communications/consultation influence in Britain post 1930s HRM ± EI alternative to unions or provide dual channel (Willman 2007) Marxist ± Cycles of control (Ramsay 1977) ± participation as response to challenges to management authority and changes in power within capital-labour relations Pluralist ± Wave theory (Marchington1992) .

HPWS µMutual gains enterprise¶ (Kochan and Osterman 2000) Co-operation.Employee Involvement and Participation Recent interest from two main sources: Rise of HRM Focus on EI means to securing commitment and high performance . mutual interest v conflict in employment relationship High involvement ± µmining the gold in people¶s heads¶ to secure improved performance European Initiatives European Works Councils (1990s) Information and Consultation Directive (2002) Tensions between HRM and EU Agendas .

Employee Involvement HRM influence seen through claimed links between EI and performance Performance a function of Ability Motivation Opportunity (AMO) µMore rigorous selection and better training systems to increase ability levels. and participative structures that improve opportunity to contribute¶ (Applebaum et al. . 20). more comprehensive incentives to enhance motivation . in Boxall and Purcell p. 2000.

Linkages within High Performance Work Systems HR Practices and operating systems designed and µbundled¶ to enhance ‡ Ability ‡ Motivation ‡ Opportunity Improved systemic response to employee effort Expanded employee potential and increased discretionary effort Improved company performance Improved worker outcomes Supportive company. industry and societal context .

Guest (2000) Link HRM and Business Performance HR Strategy Business Strategy HR Practices HR Effectiveness HR Outcomes Quality of Service Financial Performance Productivity .

often dual-channel (exists alongside indirect communications) .Focus Complex reasons for growth ± see Marchington work. .Scope .Direct involvement .Employee Involvement EI major area of growth in Britain since early 1980s Particular configuration of.Level .

Employee Involvement Employee Involvement includes: Teamworking (including self-managing teams) Team Briefing Downward communications Two-way communications Suggestion schemes Problem-solving groups Financial participation (includes profit sharing schemes and ESOPs) .

2006) An illustration of the assumed links between engagement and other factors is contained on the next slide .(however)«.. identify and commit themselves to the objectives of the organisation they work for«.And Engagement? µEngagement is an idea whose time has come«.HR professionals need to recognise that engagement is a strategic issues that cannot simply be left to manage itself¶ (CIPD 2005.it represents an aspiration that employees should understand.

Employee Engagement (CIPD 2007) Opps for upward feedback Feeling informed Engagement Mgt commitment to organisation Performance Manager¶s fairness re: issues Intention to Stay Treating employees With respect .

Portugal and Spain. the Netherlands. Luxembourg. Greece. Belgium. France. Norway Representative system . similar structures in Denmark.Key role for trade unions and worker representatives .Participation in EU In EU model of legally constituted forms of indirect involvement via Works Councils (or equivalent) and (in some countries) employee representation at senior levels in organisations ± board level Works councils/works committees at establishment or organisational level: Austria.

European Union Traditions Model of participation in EU normally a dual system of industry-wide collective bargaining and companybased works councils Some countries (Germany) gone further in formal systems of co-determination at company level EU tried to extend this to other countries with Draft 5th Directive (1972) and recently with European Works Council Directive and Information and Consultation Directive (2002) Tensions EU v UK models of involvement .

100+ of which are UK firms .European Union Traditions EWCs ± covers undertakings with 1000 + employees within EU countries and with 150 + employees in two or more of the countries Latter covers companies such as M&S. McDonalds There are currently over 600 EWCs in multinationals within the EU.

Involvement and Participation Europe The Information and Consultation Directive ± UK law introduced 2005 ± 2008 Brings UK more closely in-line with other EU countries ± µWorks Councils¶ Legally constituted forum for information and consultation contrasts with voluntary tradition in UK cover all organisations with 50+ employees Represents a shift back to indirect participation at a level above the workgroup .

Involvement and Participation In UK considerable hostility to Directive from Government and employers Many see as µalien¶ to traditions of involvement and participation in UK encroachment into managerial prerogative Led to a µWatering down¶ of Directive to cover direct forms of involvement in UK legislation DTI/BERR work links EU developments with HPWS .

Evidence on Involvement and Participation in UK Latest WERS 2004 indicates that: 72% of workplaces had some form of teamworking for core employees 83% used some form of downward communication 63% had regular meetings with feedback 71% used team-briefing for communication 30% had problem-solving groups 30% used suggestion schemes More common in Public than Private sector .

Evidence from the UK According to WERS (2004) 91% of workplaces have meetings with entire workforce or team briefings 38% use e-mail (48% in public sector). 34% the intranet (48% in public sector) 42% use employee surveys (66% public sector) 45% use regular newsletters 74% use noticeboards Limited change in use of these since 1998 survey .

What Does Evidence Tell Us? Management control ± involvement on management¶s terms? Emphasis on µtop-down¶ communications ± unitarist More communication and consultation far less negotiation Is management listening? Management cultures ± µis knowledge still power¶? .

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