Resource Guide: Employee Empowerment, Participation and Involvement

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Employee Empowerment, Participation and Involvement

Introduction In the complex area of people management paradigms, the terms Empowerment, Participation and Involvement are frequently used within the literature but often interpreted quite differently depending on the perspective of the reader and / or writer. This guide aims to offer an insight into these terms and to posit them respectively within the context of unitary and pluralist people management perspectives. Firstly it is necessary to distinguish between Participation and Involvement, and then to examine where Empowerment fits within these perspectives. Employee Participation, Employee Involvement and Empowerment According to the Chartered Institute of Personnel and Development (CIPD): Employee involvement is a range of processes designed to engage the support, understanding and optimum contribution of all employees in an organisation and their commitment to its objectives. Employee participation is defined as a process of employee involvement designed to provide employees with the opportunity to influence and where appropriate, take part in decision making on matters which affect them. According to Farnham (1997) Employee Participation is one of four policy choices for managing the employment relationship. Cited in Rose (2001, p380) Farnham states: an employee has the right to question and influence organization decision making and . this may involve representative workplace democracy. The other policy choices Farnham identifies are worker subordination via managerial prerogative, union incorporation via collective bargaining and finally employee commitment via employee involvement. It is clear then that there are differences between employee participation and employee involvement. The literature suggests that employee participation is a pluralist/collective approach with a continuum from no involvement to employee control (Blyton & Turnbull, 1998). As such it may involve processes and mechanisms such as: Collective bargaining Works councils Joint Consultative Committees Employee share schemes Worker directors European Works Councils

Employee involvement, in contrast, is more individualistic and unitarist. It aims to harness commitment to organisational objectives and relies on the maintenance of management control.

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Resource Guide: Employee Empowerment, Participation and Involvement

This is often found as part of a soft HRM approach (Rose 2000) and usually involves upwards and downwards communications flows :Downward communication flows (top management down to line staff) may involve written information (e.g. staff newsletters notice-boards, staff handbooks, house journals) and other formal channels such as team/cascade briefings and staff forums. Upward communication flows (formal and informal) may involve such tools as employee suggestion schemes (paid/unpaid), surveys of staff (general/attitudinal), appraisal schemes (traditional/upward (boss) appraisal, and is sometimes linked to quality management TQM tools such as quality circles, quality improvement teams etc.

Empowerment Having identified that there are significant differences between employee participation and employee involvement, where empowerment sits within these approaches is perhaps more complex and hinges on interpretations of power and how empowered workers actually are where such schemes are implemented. The literature suggests a range of opinions from the more cynical one, that sees empowerment as a management control/manipulation tool, to the soft HRM view that it is essential for achievement of maximum organizational potential. For example Goldsmith et al (1997:145) suggest it is predominantly about encouraging front-line staff to solve customer problems on the spot, without constant recourse to management approval. Whereas Bowen and Lawler, (1992) cited in Lashley (1996:334) take the view that it is about management strategies for sharing decision-making power. Perhaps the most widely shared view amongst employee relations writers is that there is very little true power in the hands of empowered workers as currently practised. Using Roses (2001:5) definition of power as: ..the extent to which one party to a relationship can compel the other to do something he otherwise would not do voluntarily, it is hard to see that any real power is afforded to employees, outside the narrow scope of task-related decisions aimed at satisfying external customer needs quickly, without having to refer to management. Wilkinson (1998: 49) for example asserts that management have defined the redistribution of Power in very narrow termsstrictly within an agenda set by management Another sceptical viewpoint is that such schemes, usually resulting from some delayering of the organizations management structure, add a further burden of responsibility on workers without increasing pay levels or status of the workers. Hyman & Mason (1995:387) state for example: empowerment becomes a euphemism for work intensification. This is supported further by Hollinshead et al (1999:324) who state: developments in the 1980s and 1990s suggest that the process (empowerment) only appears to give employees greater control and, in reality remains dominated and restricted by management and (Argyris 1998) who says Empowerment is still mostly an illusion . Work by Hales and Klidas (1998: 93) carried out in a sample of five star hotels supports this notion too when they state : the overwhelming impression to be gained from the literature is that empowerment entails some additional employee choice at the margins of their jobs, rather than any substantial increase in employee voice.

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Resource Guide: Employee Empowerment, Participation and Involvement

Summary It appears that whilst it ought to be possible to really empower employees in the workplace through pluralist, democratic processes i.e. an employee participation paradigm with collectivized relations that share decision making and power; empowerment as currently applied within many organizations inside and outside of the hospitality and tourism industries, appears largely to be of the unitarist / HRM variety which seeks to gain commitment through an employee involvement paradigm. Annotated bibliography of related books and articles Argyris C (1998) Empowerment: The Emperors New Clothes, Harvard Business Review, May-June, pp98-105 Marchington M (1993) Fairy tales and magic wands: new employment practices in perspective Employee Relations Vol. 17 No 1 Wilkinson A (1998) Empowerment : theory and practice, Personnel Review Vol. 27 No. 1 pp40-56

These three articles are broadly sceptical in their view on how empowering empowerment actually is (as currently applied in many organisations). The research is generic rather than industry specific. They provide a good bibliography of empowerment related references.

Hales, C. and Klidas, A. (1998) Empowerment in five-star hotels: choice, voice or rhetoric? International Journal of Contemporary Hospitality Management Vol 10 No. 3 pp88-95

This article takes a similar view to Argyris, Marchington and Wilkinson however the research is applied within the hotel sector. This also has a detailed bibliography of relevant sources related to empowerment and employee involvement.

Lashley, C (2001) Empowerment : HR strategies for service excellence Oxford, Butterworth-Heinemann Lashley C (1997) Empowering Service Excellence: beyond the quick fix, London, Cassell Lashley C (2000) Empowerment through involvement : a case study of TGI Fridays Restaurants, Personnel Review Vol. 29 No. 6 pp791-815

Probably the most prolific writer on employee involvement, empowerment and participation in hospitality. These sources investigate in depth, the complex concept of empowerment as it is applied across a number of hospitality organisations. Lashley recognises a broad spectrum of interpretations of empowerment including participatory approaches, however the main foci are on forms of empowerment centred on employee involvement.

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Resource Guide: Employee Empowerment, Participation and Involvement

Additional related books and articles Cloke, K. (2002) The end of management and the rise of organizational democracy San Francisco, Jossey-Bass Hyman, J. and Mason, B. (1995) Managing employee involvement and participation London, Sage Potterfield, T (1999) The business of employee empowerment : democracy and ideology in the workplace. Westport, Quorum Books Sturdy, A. (ed) (2001) Customer service : empowerment and entrapment Basingstoke, Palgrave Wynne J (1993) Power Relationships and Empowerment in Hotels, Employee Relations, Vol. 15 No.2

Annotated guide to related journals and periodicals The British Journal of Industrial Relations http://www.blackwellpublishing.com/journal.asp?ref=0007-1080 Despite the retention of its traditionalist title, there is a deliberate policy to include work relating to a broad range of employment relations issues reflecting the move away from collective bargaining and pluralist relations so that it can be at the centre of controversies surrounding employment relations in the 21st century. Journal of Management Studies http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 From Blackwell, a well respected UK management journal focusing on international management issues across a broad range of disciplines with frequent HR related studies Edited by Karen Legge who has written extensively on HRM and industrial relations. The Industrial Relations Journal http://www.blackwellpublishing.com/journal.asp?ref=0019-8692 A highly rated journal focusing on more traditional aspects of research into industrial relations management and employment law from a European perspective, but frequently has articles concerning employee participation and involvement. Work, Employment and Society http://wes.sagepub.com/ This journal, from the British Sociological Association, aims to publish research that analyses all forms of work and its relation to wider social processes, structures and to quality of life. The Leadership & Organizational Development Journal (incorporating Participation & Empowerment: An International Journal ) http://dandini.emeraldinsight.com/Insight/urlResolver.do?uri=%2Fvl%3D919545%2Fcl%3D4 8%2Fnw%3D1%2Frpsv%2Fjournals%2Flodj%2Fjourinfo.htm An MCB journal that provides many articles relating to Organizational Behaviour and HR related topics. Full text Articles available through Emerald.

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Resource Guide: Employee Empowerment, Participation and Involvement

International Journal of Hospitality Management http://gort.ucsd.edu/newjour/i/msg02832.html This Pergammon journal covers a broad range of issues related to international hospitality, travel and tourism including the field of HRM and employee relations. Many full text articles are available via Ingenta on-line journals. International Journal of Contemporary Hospitality Management http://gort.ucsd.edu/newjour/i/msg02411.html This MCB journal also covers a broad range of issues related to international hospitality, travel and tourism including the field of HRM and employee relations. Personnel Review http://elvira.emeraldinsight.com/Insight/urlResolver.do?uri=%2Fvl%3D4345373%2Fcl%3D1 25%2Fnw%3D1%2Frpsv%2Fpr.htm Provides guidance based on research for those who practice, teach, research or study in the field of human resource management. Part of the MCB portfolio and therefore full text articles are available through Emerald Employee Relations http://fernando.emeraldinsight.com/Insight/urlResolver.do?uri=%2Fvl%3D3110480%2Fcl%3 D78%2Fnw%3D1%2Frpsv%2Fer.htm A highly respected UK based international journal from MCB which covers a broad range of HR related issues including employee participation, involvement and empowerment. Regularly features research into service sector HR issues including hospitality leisure and tourism fields. Articles are usually available via Emerald Full text service. Caterer and Hotelkeeper http://www.madgex.com/portfolio_caterer.asp Weekly hospitality related magazine aimed at practitioners but often reports on latest initiatives within hospitality organizations, including HR related issues. Doesnt tend to have detailed academic style articles. Annotated guide to related internet resources European Industrial Relations Observatory on-line web site http://www.eiro.eurofound.ie Primarily an EU focused site reporting on current issues in Industrial Relations. Trades Union Congress (TUC) http://www.tuc.org.uk/ Presents trade union views on a wider range of employment and political issues Department of Trade and Industry (dti) http://www.dti.gov.uk/er/ Provides employers and workers with information on UK and EU employment legislation and good practice in Industrial Relations UK Government statistics http://www.statistics.gov.uk/ Includes labour market information and statistics CBI (Confederation of British Industry ) http://www.cbi.org.uk/home.html

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Resource Guide: Employee Empowerment, Participation and Involvement

Association representing large employers looks at HR issues from employer perspective. Reports on trends often available, some at a cost. Chartered Institute of Personnel and Development (CIPD) https://www.cipd.co.uk/ An association for HR professionals with latest news on research reports in HR practice People Management http://www.peoplemanagement.co.uk The official webzine of the Chartered Institute of Personnel Development. It provides online HR news, legal updates, resources and reviews, top HR jobs , comment and analysis. HR Gopher http://www.hrgopher.com/ A search engine and links to a wide range of HR related topics Labourstart http://www.labourstart.org/ A multilingual site for trade unionists giving global news on industrial relations and disputes world-wide Industrial Relations Research Unit (IRRU) http://users.wbs.ac.uk/group/irru/ Useful site that has links to papers and reports on matters relating to Industrial relations. Produces an annual briefing paper on current IR / HR issues The Involvement and Partnership Association (IPA) http://www.ipa-involve.com/ The IPA is a UK not-for-profit organisation with charitable status which helps private and public organisations to develop effective working practices that recognise the vital contribution of employees and release the full potential of the workforce The Institute for Employment Studies http://www.employment-studies.co.uk/ An independent, apolitical, international centre of research and consultancy in human resource issues. Access to research areas requires membership, but there are some free resources on the site Library of Congress http://www.loc.gov A useful US based site for searching by key words, for book publications in any topic area including HR practices and procedures Employee Involvement Association (EIA) http://www.eia.com US based International organization serving professional managers and administrators. Promotes the role of Employee Involvement as a keystone of organizational development through the empowerment of people Work-place Democracy, Employee Ownership, Co-operatives or Workers Selfmanagement

http://www.ilisimatusarfik.gl/eng/index_eng-filer/index_eng.htm
An international site with links to many organizations involved with employee participation and involvement

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Resource Guide: Employee Empowerment, Participation and Involvement

Workers on-line (Australian site) http://workers.labor.net.au Australian journal site hosted by the Labour Council of New South Wales, reporting on global industrial relations and labour disputes

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Resource Guide: Employee Empowerment, Participation and Involvement

Example of Topic Delivery, Teaching and Learning This topic has been delivered by means of a one hour lecture using animated power-point slides (http://www.hlst.ltsn.ac.uk/resources/empowerment.ppt). It is supported through a reading list and selected articles provided in a reading pack. (http://www.hlst.ltsn.ac.uk/resources/empowerment_resourcespack.pdf) One week later there is a student led debate whereby two teams construct opposing arguments based on the title: Empowerment, Participation and Involvement workplace democracy or management manipulation? Following this debate there is a class discussion where the tutor ensures that no key issues are omitted from consideration for the essay (http://www.hlst.ltsn.ac.uk/resources/empowerment_tutornotes.pdf). Students could be asked to reflect on some or all of the following key questions within their preparation for the debate What is power and how would you define empowerment? Do empowerment schemes really give 'power' to employees? To what extent have empowerment schemes been adopted by hospitality organisations? What are the motives for introducing empowerment schemes? Does the use of empowerment schemes signify a loss of control by employers in the employment relationship? What are the sceptics views on employee participation and empowerment schemes?

Example of Topic Assessment Currently this topic is assessed by means of a 2000 word essay. This is submitted one week after the debate and two weeks after the lecture. The essay title is: Evaluate the proposal that employee participation involvement and empowerment represent the new industrial democracy. (http://www.hlst.ltsn.ac.uk/resources/empowerment_markingscheme.pdf)

About the Author Peter McGunnigle is a Senior Lecturer in the School of Hotel and Restaurant Management at Oxford Brookes University. He teaches in the area of Human Resource Management and currently leads the undergraduate module Employee Relations in the Hospitality Industry. Peter is research active and has published in the area of HRM and employee commitment. He is particularly interested in the impact of specific HRM interventions (such as empowerment) on employee motivation and commitment. Peter would welcome suggestions for further materials for this resource guide from others teaching and researching in this field.

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