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Employee Involvement Defined

The degree that employees share information, knowledge, rewards, and power throughout the organization
– active in decisions previous outside their control – power to influence decisions – knowledge sharing

Forms of Employee Involvement Formal Codified practices Example: SDWTs at TRW Canada Statutory Required by law Example: European codetermination Direct Employees personally involved Example: Staff vote against smoking in the workplace Informal Casual information exchanges Example: Boss asks for ideas Voluntary No legal requirement Example: Strategic task force Representative Reps decide for other employees Example: Employee reps as directors .

gain sharing) Selective consultation — Medium Low . SDWTs) Full consultation — Employees offer recommendations (e..g.g.Levels of Employee Involvement High High involvement — Employees have complete decision making power (e..

How Involvement Improves Decisions Identify and define problems better Employee Involvement Usually identify more and better solutions More likely to select the best option .

Contingencies of Employee Involvement • Decision quality • Decision commitment • Decision conflict • Structured problem .

Overcoming Involvement Challenges • Cultural Differences – Better in collectivist and low power distance cultures • Management Resistance – Educate/train managers to become facilitators • Employee and Union Resistance – Concerns about increased stress. and union power – Solution is trust and involvement . giving up union rights.