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Participative Management

YEAR 2011-12 T.Y.B.M.S DIV-A SEM-V

Name of the Student

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Introduction Objectives Of Participative Management Requirements Of Participative Management Benefits Of Participative Management

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Effective Participative Management Techniques Case Study Raptakos Brett co. Ltd, Thane Observation and Recommendations Conclusion Bibliography

PARTICIPATIVE MANAGEMENT Participative (or participatory) management, otherwise known as employee involvement or participative decision making, encourages the involvement of stakeholders at all levels of an organization in the analysis of problems, development of strategies, and implementation of solutions. Employees are invited to share in the decision-making process of the firm by participating in activities such as setting goals, determining work schedules, and making suggestions. Other forms of participative management include increasing the responsibility of employees (job enrichment); forming self-managed teams, quality

circles, or quality-of-work-life committees; and soliciting survey feedback. Participative management, however, involves more than allowing employees to take part in making decisions. It also involves management treating the ideas and suggestions of employees with consideration and respect. The most extensive form of participative management is direct employee ownership of a company. Four processes influence participation. These processes create employee involvement as they are pushed down to the lowest levels in an organization. The farther down these processes move, the higher the level of involvement by employees. The four processes include: 1. Information sharing, which is concerned with keeping employees informed about the economic status of the company. 2. Training, which involves raising the skill levels of employees and offering development opportunities that allow them to apply new skills to make effective decisions regarding the organization as a whole. 3. Employee decision making, which can take many forms, from determining work schedules to deciding on budgets or processes. Rewards, which should be tied to suggestions and ideas as well as performance.

Objectives of Participative Management

To Make Best Use of Human Capital: Participative management does not restrict organizations to exploit only physical capital of employees. Rather it makes the best use of human intellectual and emotional capital. It gives employees an opportunity to contribute their ideas and suggestions to improve business processes and create a better working environment. To Meet the Psychological Needs of Employees: When employees have a say in decision making process, it gives them

a psychological satisfaction. It is a simple force that drives them to improve their performance, create a proper channel of communication and find practical solutions to design better organizational processes. To Retain the Best Talent: Participatory management is one of the most effective strategies to retain the best talent in the industry. It gives employees a sense of pride to have a say in organizational decision making process. Once they are valued by their seniors, they stick to the organization and become managements partners in meeting specific goals and achieving success. To Increase Industrial Productivity: In todays competitive world, motivation, job security and high pay packages are not enough to increase industrial productivity. Leadership, flexibility, delegation of authority, industrial democracy and employee say in decision making are important to increase annual turnover of any organization. To Establish Harmonious Industrial Relationship: Participatory from of management is an unbeatable tact to establish and maintain cordial relationships with employees and workers union. The success of an organization depends on its human resources. Employee empowerment acts as a strong force to bind the employees and motivate to give them their best to the organization. To Maintain a Proper Flow of Communication: Two-way communication plays an important role in the success of any organization. Employee participation in decision making ensures proper flow of communication in the organization. Everyone contributes their best and tries to strengthen the organization by contributing their best to improve business processes.

Requirements Of Participative Management A common misconception by managers is that participative management involves simply asking employees to participate or make suggestions. Effective programs involve more than just a suggestion box. In order for participative management to work, several issues must be resolved and several requirements must be met. First, managers must be willing to relinquish some control to their workers; managers must feel secure in their position in order for participation to be successful. Often managers do not realize that employees' respect for them will increase instead of decrease when they implement a participative management style. The success of participative management depends on careful planning and a slow, phased approach. Changing employees' ideas about

management takes time, as does any successful attempt at a total cultural change from a democratic or autocratic style of management to a participative style. Long-term employees may resist changes, not believing they will last. In order for participation to be effective, managers must be genuine and honest in implementing the program. Many employees will need to consistently see proof that their ideas will be accepted or at least seriously considered. The employees must be able to trust their managers and feel they are respected. Successful participation requires managers to approach employee involvement with an open mind. They must be open to new ideas and alternatives in order for participative management to work. It is important to remember that although the manager may not agree with every idea or suggestion an employee makes, how those ideas are received is critical to the success of participative management. Employees must also be willing to participate and share their ideas. Participative management does not work with employees who are passive or simply do not care. Many times employees do not have the skills or information necessary to make good suggestions or decisions. In this case it is important to provide them with information or training so they can make informed choices. Encouragement should be offered in order to accustom employees to the participative approach. One way to help employees engage in the decision-making process is by knowing their individual strengths and capitalizing on them. By guiding employees toward areas in which they are knowledgeable, a manager can help to ensure their success. Before expecting employees to make valuable contributions, managers should provide them with the criteria that their input must meet. This will aid in discarding ideas or suggestions that cannot be implemented, are not feasible, or are too expensive. Managers should also give employees time to think about ideas or alternative decisions. Employees often do not do their most creative thinking on the spot. Another important element for implementing a successful participative management style is the visible integration of employees' suggestions

into the final decision or implementation. Employees need to know that they have made a contribution. Offering employees a choice in the final decision is important because it increases their commitment, motivation, and job satisfaction. Sometimes even just presenting several alternatives and allowing employees to choose from them is as effective as if they thought of the alternatives themselves. If the employees' first choice is not feasible, management might ask for an alternative rather than rejecting the employee input. When an idea or decision is not acceptable, managers should provide an explanation. If management repeatedly strikes down employee ideas without implementing them, employees will begin to distrust management, thus halting participation. The key is to build employee confidence so their ideas and decisions become more creative and sound.

Benefits Of Participative Management A participative management style offers various benefits at all levels of the organization. By creating a sense of ownership in the company, participative management instills a sense of pride and motivates employees to increase productivity in order to achieve their goals. Employees who participate in the decisions of the company feel like they are a part of a team with a common goal, and find their sense of self-esteem and creative fulfillment heightened. Managers who use a participative style find that employees are more receptive to change than in situations in which they have no voice. Changes are implemented more effectively when employees have input and make contributions to decisions. Participation keeps employees

informed of upcoming events so they will be aware of potential changes. The organization can then place itself in a proactive mode instead of a reactive one, as managers are able to quickly identify areas of concern and turn to employees for solutions. Participation helps employees gain a wider view of the organization. Through training, development opportunities, and information sharing, employees can acquire the conceptual skills needed to become effective managers or top executives. It also increases the commitment of employees to the organization and the decisions they make. Creativity and innovation are two important benefits of participative management. By allowing a diverse group of employees to have input into decisions, the organization benefits from the synergy that comes from a wider choice of options. When all employees, instead of just managers or executives, are given the opportunity to participate, the chances are increased that a valid and unique idea will be suggested.

Effective Participative Management Techniques Participative management aims at getting employees involved in decision making and policy direction in a business or government organization. Employees have great ideas that can help an organization to become more effective at achieving its goals. It is up to skilled managers to source these ideas through participative management techniques. 1. Building Cooperation

If you have ever met a manager who likes to build cooperation of employees into the department's work culture, than you probably saw a

person using a participative management technique. One idea that works is taking a large department project and breaking it down into chunks. Small work teams can pursue a chunk of the project in their own groups. In a group, individuals cooperate, setting goals and producing results. As long as they meet established deadlines for all groups, they possess a high degree of flexibility in getting the job done. Committees

A senior management team can help to solve problems facing the entire organization by inviting employees of all levels of seniority to participate in special committees. A committee must tackle a specific problem, or even study problems that might exist, and report back to the senior management team. If a senior management team wants to be truly responsive to worker input, it will take the advice of a committee seriously and incorporate its suggestions as part of the final solution. Consultative Management Model

The consultative management model is a simplified version of participative management. Whenever a manager needs worker input, she can use the staff meeting to discuss important issues with line workers. If she gets ideas that would truly impact the organization, positively or negatively, she will forward those ideas by email or another communication channel to senior managers. Some organizations use the weekly staff meeting as a standard, and managers report back to a manager's meeting to discuss what employees are saying about the present issues facing the organization. Cross Functioning

A suggestion box is a limited way that many employers try to get employees involved in setting policy and other management decisions. Another way is to use the cross-functioning method, or work teams comprised of workers from different departments. They solve problems facing the organization, and everyone on a team has an equal voice in the group's direction. This model represents an interdisciplinary

approach based on the notion that workers from different technical backgrounds can brainstorm together and solve problems.

Case study: Participative Management in Raptakos Brett & Co. Ltd Thane

Raptakos, Brett & Co.Ltd., was founded in India in 1930 by Mr.A.Raptakos and Mr.W.H.Brett. Over the past seven decades, the company has shown consistent growth and acquired a well earned reputation for very ably serving the medical profession and patients alike with a portfolio of innovative products. The company has a wide range of nutraceutical products ranging from specialised infant foods for low birth weight and lactose intolerance infants foods for growing children, diabetics, cardiac patients, pregnant and lactating women, and the old and critically ill. For the benefit of the medical profession, Raptakos,Brett & Co. Ltd publishes and distributes free of cost an in-house publication called the Quarterly Medical Review(QMR) containing articles of medical interest. The company has an pextensive pdistribution network comprising 24 branches spread all over India. Over 1000 field personnel serves the medical professionals through out the country. The company has also established its presence in international markets in Asia, Africa, South America and Europe through its offices in Vietnam, Philippines, Kenya, Middle East, South Africa and UK. Organizational Structure Of Personnel Department

(DGM) General Manager

Personnel manager Senior Executive Assistant 1 Assistant 2

Workers & Management Reptakos Ltd. has 4 production plants in India viz. Thane, Roha, Chennai and Alwar, out of which thane plant is the largest plant. 60% of the business is majorly carried through thane plant. There are nearly 450

workers working in the organization out of which 350 are permenant and the rest are on temporary basis. The workers and management are well connected with each other because they can directly approach to management. There is only one trade union operating in the organization, due to which there are less number of conflicts between the workers and management.

Recent Worker issue in Reptakos brett co. Ltd

Recently in April 2011 Reptakos faced a strike from their temporary workers. The strike was held on the basis that the temporary workers in the company were paid less according to their expectations and also their major demand was that they wanted to become permanent workers as soon as possible. The company on the other hand was not ready to accept these demands. They were ready to increase their pay to some extend but not at all ready to make the temporary workers permanent. The company told the workers to wait for some time for like a year or two because by that time the temporary workers were as it is going to become permanent. The workers did not agree to compromise on this issue and went on a strike. The company after getting ready to compromise finally took major step and fired all the temporary workers.

Ways of Participation (Forms): One view is that workers or the trade unions should, as equal partners, sit with the management and make joint managerial decisions.

The other view is that workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels. In practice, the participation of workers can take place by one or all the methods listed below:

1. Board Level Participation 2. Work or Safety Committee 3. Suggestion Schemes 4. Quality Circles 1. Participation at the Board level: This would be the highest form of industrial democracy. The workers representative on the Board can play a useful role in safeguarding the interests of workers. The representative workers of the organization has given an authority to prevail upon the top management not to take measures that would be unfavourable to them. 2. Work or safety committee: There is no work committee operating in the organization instead of that there is a safety committee which solves the problems or disputes regarding workers issue. The committee tries to solve the problem at each level and if the problem is not solved , the issue moves on to the next level.

3. Suggestions Scheme: Employees views are invited and reward is given for the best suggestion. With this scheme, the employees interest in the problems of

the organization is aroused and maintained. Suggestions can come from various levels. The ideas could range from changes in inspection procedures to design changes, process simplification, paper-work reduction and the like. Out of various suggestions, those accepted could provide marginal to substantial benefits to the company. The rewards given to the employees are in line with the benefits derived from the suggestions.

4. Quality Circles: A QC consists of seven to ten people from the same work area who meet regularly to define, analyze, and solve quality and related problems in their area.


From the visit we observed that the Suggestion scheme of company is not effectively implemented. The workers are not responding to it and at the same time the management is not paying much attention to the complaints for the workers.

Suggestions can come from various levels and is very useful for the further progress in the organization. So all we can recommend is that they should make some positive changes in it and use it on regular basis.


You give worker an inch and he gives you back a mile. If applied properly participative management acts as a boon and increases efficiency, effectiveness and performance of employee and work performed by them.