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HUMAN RESOURCE PLANNING SEMINAR:

WORKERS PARTICATION IN MANAGEMENT

Subitted to: Dr. Santhosh P Thampi S.M.B.S Roll no:41

Submitted by: P.A.Sherin Ameer MBA-S3

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ABSTRACT

Since its origins with Elton Mayos The Human Problems of an Industrial Civilization (1933) and Kurt Lewins Frontiers in Group Dynamics (1947), a large and diverse literature has been assembled on participative management, which includes employee involvement, industrial democracy, and stakeholder involvement. Recently, the focus has been on the relationship between participative management and the newer, organic and networked organizational forms, dramatically improved information and communication technology, and greater citizen involvement in organizational decision making. This literature on participative management and employee involvement addresses the interactive relationship between the broader socio-political system and the workplace, in both empirical and philosophical or normative terms, and then tiers that examination down to look at the relationships between organizational design, managerial approach, workplace conditions, job design, pay systems, worker and manager characteristics, organizational performance, and worker and manager motivation and satisfaction.

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INTRODUCTION
Workers participation in management is an essential ingredient of Industrial democracy. The concept of workers participation in management is based on Human Relations approach to Management which brought about a new set of values to labour and management. Traditionally the concept of Workers Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organization. Workers participation is also known as labour participation or employee participation in management. Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making. It addresses fundamental issues of governance within organizations and the role of employees and external stakeholders in all levels of organizational decision making. In addition to philosophical issues of governance and the appropriate relationship between workers and their employers, the literature on participative management can help managers dealing with the fundamental challenges facing public science managers in todays dynamic and competitive environment: maintaining high levels of effectiveness, productivity, innovativeness, and worker motivation in an increasingly dynamic, competitive environment. Extensive research conducted as early as the 1950s and 1960s demonstrated that participative management is particularly well suited to science-based organizations whose key staff are noted for their creativity, intrinsic motivation for work that interests them, stronger affiliation with their discipline than their organization, and sensitivity to directive management (Likert 1969; Marcson 1960; Siepert 1964; Macy 1965; Steele 1969). The interdependence of scientific research, and hence of scientific organizations, requires participation at multiple levels. One of the main social and organizational utilities of participation is that it offers the possibility of resolving contradictory interests through individual negotiation and/or collective bargaining rather than imposition of authority.

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WORKERS PARTICIPATION IN MANAGEMENT

Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making. Participative Management refers to as an open form of management where employees are actively involved in organizations decision making process. The concept is applied by the managers who understand the importance to human intellect and seek a strong relationship with their employees. They understand that the employees are the facilitators who deal directly with the customers and satisfy their needs. To beat the competition in market and to stay ahead of the competition, this form of management has been adopted by many organizations. Organizations welcome the innovative ideas, concepts and thoughts from the employees and involve them in decision making process. Participative Management can also be termed as Industrial Democracy, Codetermination, Employee Involvement as well as Participative Decision Making. The concept of employee participation in organizations decision making is not new. However, the idea couldnt gain that much popularity among organizations. Studies have shown that only 3-5 percent of organizations have actually implemented this concept in their daily operations. Though the theory of participative management is as old as the institution of employees and employers still it is not applied by a large proportion of organizations.

The idea behind employee involvement at every stage of decision making is absolutely straight. Open and honest communication always produces good results both for organization as well as workers. Freedom and transparency in companys operations take it to the next level and strengthens the basis of the organization. On the other hand, there are several companies that straightway rule out the possibility of participative decision making process. According to them, employees misuse their freedom of expression and participation in decision making as it provides higher status to employees and empowers them.

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Definitions: The concept of WPM is a broad and complex one. Depending on the sociopolitical environment and cultural conditions, the scope and contents of participation change. International Institute of Labour Studies: WPM is the participation resulting from the practices which increase the scope for employees share of influence in decision-making at different tiers of organizational hierarchy with concomitant (related) assumption of responsibility. ILO: Workers participation, may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers member on management or supervisory boards or even management by workers themselves (as practiced in Yugoslavia). The main implications of workers participation in management as summarized by ILO: Workers have ideas which can be useful; Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere.

Scope of Participative Management

The scope of participative style of management certainly depends on the organization, its nature, functions and processes. Though associating employees at every stage of decision-making is not possible still regular exchange of information, ideas, consultations, thoughts, decisions and negotiations between employer and the employees definitely is a boon to the organization. Few of the

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worlds biggest organizations like Toyota, HSBC, British Airways, British Petroleum and Nokia Cellular have achieved considerable profits and value creation by implementing the most amazing ideas of their employees. Their success witnesses the importance of workers participation in the process of decision making. The scope of workers involvement in managerial decision-making may extend to social, economic and personnel decision making depending upon the requirements of the organization. But there is a difference of opinion about the extent to which employees can participate in managerial decision-making process. Should they be equal partners and make joint decisions or should workers be given opportunities through their seniors to come up with the ideas. The first school of thoughts favors the actual participation of workers while the second school of thoughts suggests the consultation of workers in managerial decision making. It is up to the management to decide which style it prefers and till what extent it requires involvement of employees. However, if we talk about the scope of workers participation in social, economic and personnel decision-making, it may have a direct impact on some of the most crucial activities of the organization. Lets read further to understand how these three groups of managerial decision-making can affect any industrial establishment:

Social Decision-Making: It refers to employee involvement in decision making regarding hours of work, rules and regulations at workplace, welfare measures, workers safety, employee welfare, health and sanitation. In this category, employees have a say in decisions in these areas. They may take an advantage of their liberty and sometimes, can dominate the management. Here the concept of bounded or restricted participation can work well. Economic/Financial Decision-Making: It includes involvement of employees on various financial or economic aspects such as the methods of manufacturing, cost cutting, automation, shut-down, mergers and acquisition and lay-offs. Inviting ideas from employees on various issues like how to cut down the operating cost can work wonders. Personnel Decision-Making: The employees participation in personnel decision-making refers to their involvement in various management processes including recruitment and selection, work distribution, promotions, demotions and transfers, grievance handling, settlements, voluntary retirement schemes and so on. Participation of employees in these

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processes can safeguard their interests and motivate them to work hard for the betterment of self as well as the organization. Employee participation in decision-making process although is beneficial. However, there may be some limits on it to ensure that they do not take advantage of their liberty and right of participation. There are several ways through which employees can participate in the whole process. Some of them are financial participation, participation through collective bargaining, participation at the board level, participation through ownership, participation through work councils and committees and participation through suggestion schemes. Anyone of these ways or processes can be adopted by the management to ensure participation from workers.

Objectives of Participative Management

Participative management acts as a force to motivate employees to meet specific organizational goals. The main idea behind this style of management is not only using physical capital but also making optimum utilization of intellectual and emotional human capital. This is the process of involving people in decision making process to ensure that everyones psychological needs are met. It, in turn, increases the job satisfaction among employees and improves the quality of their work life. Motivated employees are the biggest assets of an organization and participative management is an effective strategy to retain the best talents of the industry. Participatory Management or co-determination is seen as the quick cure for poor morale, employee attrition, low productivity and job dissatisfaction. However, it may not be appropriate to empower employees at every level but use of joint decision making at certain levels in organization can work wonders.

Main objectives to introduce participative style of management in organizations are:

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.

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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.

Participative management is beneficial to organization as well as employees. It gives employees a higher degree of enjoyment at work place that drives them to work harder. It is equally rewarding for the management as it ensures tremendous improvement in work culture within the organization as well as increase in its productivity.

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Features of Participative Management

Employees have always been bossed around their managers and told what they are supposed to do. They never had the authority to decide things in the company. Gradually, times are changing and employees are encouraged to participate in organizations decision making process. Management motivates them to come up with ideas and suggestions that can make organizational processes far more efficient. The main idea behind adopting participatory form of management is to work together, achieve targeted goals in minimum possible time and stay ahead of competition. For some companies, participative management is still a foreign subject. The concept is not widespread and is still restricted to a few organizations. They have such a weird perception towards it that they cant even picture it working. The management in such companies doesnt like employees questioning its authority. But the organizations that have successfully adopted this particular style of management they look upon it as a means to achieve their targets and create a sound working environment. The concept is gaining world-wide recognition and popularity day by day.

Ethical Dimensions: Participatory management has ethical dimensions and based on morals, principles and values. In this form of management, everyone is treated equally when it comes to organizational decision making. It is based on employee empowerment, responsibility sharing and delegation of authority. Proper Channel of Communication: Participative form of management encourages two-way communication. It is not only management that decides what employees need to do but it also encourages employees to participate in decision making and give ideas and suggestions to make organizational processes better and more efficient. They are allowed to share their problems, views, ideas and feedback with their managers.

Empowers Employees: Participative style of management gives employees a chance to participate in management processes. They are encouraged to come up with their views. Gone are the days when employees were bossed around by their managers. Now they are to be treated like co-workers. This provides a higher status to employees as they also have a say in decision making.

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Recognition of Human Dignity: In this form of management, all employees are treated equally irrespective of their designations when it comes to giving ideas and suggestions for organizational decision making process. Employees are no more the servants of managers but are the most important assets of an organization. Psychological Satisfaction to Employees: Most of our lives are spent at workplace. It is important for everyone to have psychological satisfaction as far as our employment is concerned. Commitment from the organization, respecting the dignity of individuals and co-determining the company policies are some of the features of participative management that provide psychological satisfaction to employees.

Participative Management is a universally recognized concept but still most organizations hesitate to adopt it. Through this style of management, both the parties, employer and employees, are satisfied. It brings management and employees closer and thus, should be adopted open heartedly.

Pre-requisites of Participative Management

Participative management can best be described as a style of decision making that ensures that involvement of stakeholders at all levels. This operates at three levels, Problem analysis, strategy formulation and final implementation of the solution. There are certain prerequisites to be met before participative management can be put to work. Participative management first of all requires a willingness from the managers to give up some charge to the workers and they must in turn be in a position such thatthe successful participation of all is ensured. It cannot be successful in any organization unless is carefully planned, timed and well thought upon. Since participative management is a style of decision making, therefore its implementation essentially requires a change in the employees idea of the latter. This change also means that there is a cultural change required in the organization vis--vis a change from a certain other style of decision making to participative style. It also brings with it a certain amount of resistance from the employees specially so from the older or the long term employees. The resistance is a reflection of the disbelief of the employees that their participation will not be respected and implemented. The onus here lies on the managers in putting in sincere efforts to convince them of the usefulness of their

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role in the decision making. The employees need proof that their ideas will be considered, discussed seriously and implemented finally if found beneficial to the organization. This is precisely why participative management needs to be implemented in phases; this way the employees are able to see proof that their ideas and suggestions hold weight. It also encourages them to come forth in future and also keeps them continuously engaged in thinking about the welfare of their organization. One more prerequisite for successful participative management is attitude of the top and middle management or those who seek employee interventions in decision making. They must approach employee involvement with a receptive and open mindset. This encourages participation. They must be open to new ideas and innovations. This may sound problematic in large organizations but how the suggestion is being received decides to a large extent whether or not the style of decision making can be successful. Since decision making is based on inputs of one and all, therefore its success also depends on the degree of participation of employees. In certain organizations despite obvious proofs, the employees decide not to participate or make contribution. In yet another organizations the employees are not skilled enough to make meaningful contributions to the final decision making process. This can be overcome by imparting the right kind of training and by the manager himself by ascertaining the individual strengths of his team members and asking for relevant contributions based upon the same. In large organizations in order to ascertain the relevance of suggestions, managers also need to set certain benchmarks for making inputs to various groups so that discussions are held at levels that are consequential and the solutions are feasible economically. Proof of implementations serves as the biggest marketing vehicle that encourages the employees to become more forthcoming. This also communicates to them that they are important and also motivates them more. Ideas that cannot be implemented need to be explained to the employees. This is important in order to avoid mistrust and promote participation.

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Methods/Ways of Participation of Employees in Decision-Making

Participation of workers in decision-making process has resulted in successful value creation in many organizations. Though the extent to which employees should participate in organizational decision making is still a matter of debate. Some say that workers union should participate with management as equal partners while some believe in restricted or bounded participation, that is, participation of employees or workers to a limited extent. However, there are a number of ways through which employees can participate in decision-making process of any organization. 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. He or she can serve as a guide and a control element. He or she can prevail upon top management not to take measures that would be unpopular with the employees. He or she can guide the Board members on matters of investment in employee benefit schemes like housing, and so forth. The Government of India took the initiative and appointed workers representatives on the Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized banks. The Tatas, DCM, and a few others have adopted this practice. 2. Participation through ownership: This involves making the workers shareholders of the company by inducing them to buy equity shares. In many cases, advances and financial assistance in the form of easy repayment options are extended to enable employees to buy equity shares. Examples of this method are available in the manufacturing as well as the service sector. Advantage: Makes the workers committed to the job and to the organization. Drawback: Effect on participation is limited because ownership and management are two different things.

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3. Participation through complete control: Workers acquire complete control of the management through elected boards. The system of self-management in Yugoslavia is based on this concept. Selfmanagement gives complete control to workers to manage directly all aspects of industries through their representatives. Advantages: Ensures identification of the workers with their organization. Industrial disputes disappear when workers develop loyalty to the organization. Trade unions welcome this type of participation. Conclusion: Complete control by workers is not an answer to the problem of participation because the workers do not evince interest in management decisions.
4. Participation through Staff and Works Councils:

Staff councils or works councils are bodies on which the representation is entirely of the employees. There may be one council for the entire organization or a hierarchy of councils. The employees of the respective sections elect the members of the councils. Such councils play a varied role. Their role ranges from seeking information on the managements intentions to a full share in decision-making. Such councils have not enjoyed too much of success because trade union leaders fear the erosion of their power and prestige if such workers bodies were to prevail.
5. Participation through Joint Councils and Committees:

Joint councils are bodies comprising representatives of employers and employees. This method sees a very loose form of participation, as these councils are mostly consultative bodies. Work committees are a legal requirement in industrial establishments employing 100 or more workers. Such committees discuss a wide range of topics connected to labour welfare. Examples of such committees are welfare committee, safety committee, etc. Such committees have not proven to be too effective in promoting industrial democracy, increasing productivity and reducing labour unrest.

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6. Participation through Collective Bargaining:

Through the process of CB, management and workers may reach collective agreement regarding rules for the formulation and termination of the contract of employment, as well as conditions of service in an establishment. Even though these agreements are not legally binding, they do have some force. For CB to work, the workers and the employers representatives need to bargain in the right spirit. But in practice, while bargaining, each party tries to take advantage of the other. This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the crude concept of exercising power for the benefit of one party. WPM, on the other hand, brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship. 7. Participation through Job Enlargement and Job Enrichment: Excessive job specialization that is seen as a by-product of mass production in industries, leads to boredom and associated problems in employees. Two methods of job designing job enlargement and job enrichment are seen as methods of addressing the problems. Job enlargement means expanding the job content adding task elements horizontally. Job enrichment means adding `motivators to the job to make it more rewarding. This is WPM in that it offers freedom and scope to the workers to use their judgment. But this form of participation is very basic as it provides only limited freedom to a worker concerning the method of performing his/her job. The worker has no say in other vital issues of concern to him issues such as job and income security, welfare schemes and other policy decisions.
8. Participation through Suggestion Schemes:

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. Progressive managements increasingly use the suggestion schemes. Suggestions can come from various levels. The ideas could range from changes in inspection procedures to design changes, process simplification, paper-

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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.

9. Participation through Quality Circles:

Concept originated in Japan in the early 1960s and has now spread all over the world. 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. These circles require a lot of time and commitment on the part of members for regular meetings, analysis, brainstorming, etc. Most QCs have a definite life cycle one to three years. Few circles survive beyond this limit either because they loose steam or they face simple problems. QCs can be an excellent bridge between participative and non-participative approaches. For QCs to succeed in the long run, the management needs to show its commitment by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions. Training in problem-solving techniques is provided to the members. QCs are said to provide quick, concrete, and impressive results when correctly implemented. Advantages: Employees become involved in decision-making, acquire communication and analytical skills and improve efficiency of the work place. Organization gets to enjoy higher savings-to-cost ratios. Chances of QC members to get promotions are enhanced.

10. Empowered Teams: Empowerment occurs when authority and responsibility are passed on to the employees who then experience a sense of ownership and control over their jobs. Employees may feel more responsible, may take initiative in their work, may get more work done, and may enjoy the work more. For empowerment to occur, the following approach needs to be followed as compared to the traditional approach:

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Element 1. Organizational structure 2. Job design 3. Management role 4. Leadership 5. Information flow 6. Rewards 7. Job process

Traditional Organization Layered, individual Narrow, single task Direct, control Top-down Controlled, limited Individual, seniority based Managers plan, control, improve

Empowered Teams Flat, team Whole process, multiple tasks Coach, facilitate Shared with the team Open, shared Team-based, skill-based Teams plan, control, and improve

Features of empowered or self-directed teams: Empowered to share various management and leadership functions. Plan, control and improve their work. Often create their schedules and review their performance as a group. May prepare their own budgets and co-ordinate their work with other departments. o Usually order materials, keep inventories and deal with suppliers. o Frequently responsible for acquiring any new training they might need. o May hire their own replacement to assume responsibility for the quality of their products or services Titan, Reliance, ABB, GE Plastics (India), Wipro Corporation and Wipro InfoTech are empowering employees both frontline as well as production staff, and are enjoying positive results

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11. Financial Participation: This method involves less consultations or even joint decisions. Performance of the organization is linked to the performance of the employee. The logic behind this is that if an employee has a financial stake in the organization, he/she is likely to be more positively motivated and involved. Some schemes of financial participation: Profit-linked pay Profit sharing and Employees Stock Option schemes. Pension-fund participation.

Case study on workers partication in management

Workers' Participation at TISCO Since Tata Iron and Steel Company are the pioneers in establishing joint consultation in India, it is worthwhile to look at workers' participation at TISCO. Closer association of employees with management at TISCO began in 1919 and was formalized in August 1956. The purpose was to promote increased productivity, provide a better understanding to the employees of their role and importance, and to satisfy the urge for self expression. The scheme as set up at TISCO consist f a three-tiered system with joint department councils (JDCs) constituted at the departmental level. Next, joint works councils (JWC) for the entire work, and at the top the joint consultative council of management (JCCM). The specific functions of these three bodies were as follows: JDCs were to study operational results and production problems, advice on the steps deemed necessary to promote and rationalize production, improve productivity and discipline and economize cost. Promotion of welfare and safety, encouragement of suggestions and improvement of working conditions also fell within their purview. JWCs were to discharge special function of reviewing every month the working of JDCs and other committees such as Suggestion Box Committee, Safety Committee, Canteen Managing Committee, etc.JCCM was given the task of advising management on production and welfare and also looking at matters referred to by JDCs and JWCs In order to ensure that these committees did not overlap the functions of other committees,

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separate task groups were formed. Special courses were offered to prepare both management and union representatives to effectively utilize the facility. TISCO's experience with workers' participation has been satisfactory. From 1957 to the middle of 1972 JDCs have discussed a total of 14,104 suggestions of which 70.3 per cent have been implemented. These suggestions have covered a wide range of topics and issues, but the most important point to remember, perhaps, is that the councils have been successful in involving workers equally in the process of production.

Benefits of Participative Management

Participative management allows for innovation and knowledge sharing between the managers and the workers, those who are contiguous to the products being made. They being the closest can give better feedback for quality control, devise efficient manufacturing processes and strategize for the same. The benefits of participative management as follows:

Innovation and increased efficiency: The problem solving process and openness to new ideas can result in innovation. Apart from this as mentioned above there is also knowledge sharing amongst the workers and the managers. This means that those who are part of a certain process at the ground level give inputs for improved efficiency of the same. This has dual implications, helping improve the quality of product and curtailing the cost of manufacture. Timeliness: There is improved communication between the managers and the workers and between workers across different units. A loophole or flaw is reported in time. Employee satisfaction and Motivation: Empowering the employees increases their ownership or stake in their work. This increases efficiency and productivity. Consequently there is decreased absenteeism and less employee turnover. This also works in attracting more people towards the organization and the job. Product quality: A say in decision making means that workers can immediately pin point and suggest remedial measures for improving the efficiency of the process they are a part of. This means that quality control in product or service is exercised for the lowest level.

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Less supervision requirements: There is greater focus on management of self with due emphasis of widening ones skill set. One of the major benefits of this is that there is a lesser need of supervision and support staff. Better grievance redressal: Increased communication paves way for reduced number of grievances and quick and effective resolution of dispute (often on the spot). Union - management relationship is also benefited and strengthened. Hiring Flexibility: Hiring flexibility is increased as a result of cross training. Increased coordination among team members also offers a comfort zone for the newly hired.

Participative management thus results in overall increase of the ownership of work of an employee. This empowerment can lead to increased efficiency, better productivity, improved morale and job satisfaction. But the fact the participative management requires an overall change in the organizational culture, the implementation of the same, especially when there is a bureaucratic style of decision making in place, can be a major challenge!

Limitations of Participative Management

Participative management is undoubtedly one of the better approaches to management. But like any other style of decision making there are certain limitations. These limitations arise either externally or internally vis--vis the implementation. The following are certain limitations of participative management:

Complexity of Technology and Organizations: Organizations and Technology are so complicated these days that there are specialized workers required for each job. Workers cannot extend beyond a certain limit in participation. There are instances when a certain department or group participates aggressively and a corresponding group acts equally opposite. Then there are limitations at the level at which you work. Workers, for example, can participate in matters pertaining to operations, policy matters remain outside their reach. Employees right of not participating: An employee has the right to not participate. Certain people do not believe in the usefulness of participation and therefore opt out of the same. Some labor unions for example question the usefulness of participation reasoning that participation offers the

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management deep insights into the workers and they may then use it against the latter. Manipulation: Managers may sometimes use participation to manipulate employees. This may be both conscious and subconscious. Similarly, representatives of the labor unions may also exploit the workers in the name of participation. Workers Psychology: An existent psyche amongst the employees, that they are the workers and their primary purpose is to serve their masters (management) prevents them from participating. It is therefore of little interest to such people. General Bias: Resistance to change inside the organization as mentioned earlier is the biggest hurdle to participative management. Managers decline to share power or to delegate apprehending that they may lose authority by doing so. Workers similarly show disinterest in the participation presuming everything to be well in order. Further there is bias from the top management who step back on their promises when they fail to see participation deliver results in quick time. Trade Unions: Trade unions are integral to the success of participative management; they may be equally detrimental to the success of the same. Most of the trade unions engage in politics and are little bothered about participation. Add to it, the approach of representatives or individuals is also not very favorable. Workers join trade unions for personal rather than organizational reasons. Membership is regarded as a kind of protection against mishaps like accidents, dismissal and other problems whereby union interventions can rescue the worker. Naturally, the motive of participation is diluted.

Participative management cannot work in isolation. It involves each and every member of the organization. For deriving benefits and success out of the same, no single member or employee group can be left out. There are limitations but they arise because there either one or the other group is left out or there is serious communication gap that needs to be taken care of.

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Conclusion:
What motivates people to work? Money may be the primary reason, but beyond a certain limit it fails to. Organizations have been trying out different things to increase the level of motivation of its employees. Employee empowerment is one of them. Employee empowerment means that an employee is given a chance to be enterprising, take risks without compromising with the organizational goals, mission and vision. His say in the process of decision making in increased. This can be for one particular individual or for the entire organization. In the latter case it is called participative management. There are pros and cons to this employee empowerment. Whereas it is said and has been observed that participative management may lead to increased productivity, motivation, job satisfaction and quality enhancement; it may also slow down the process of decision making and act a potential security threat in terms of ease of access of information it offers to the employees.

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REFERENCES :
1. http://www.managementstudyguide.com/participative-

management.htm

2. http://www.mbaknol.com/human-resource-management/workersparticipation-in-management/