Introduction to Management

Group presentation:

By,
Vaishali Bhardwaj
Lavin Keswani
Imaad Khan
Hiten Umrania
Krishna Mepani
Nidhi Mehta
PARTICIPATION
 AIM AND COVERAGE OF
PRESENTATION

The aim of our presentation is to show the

different types of participation methods used
by organizations.

This presentation also covers how employees

are involved and empowered within the
organization structures and how each method
of participation helps the organizations
achieve their goals.
 INTRODUCTION
 Employee participation can be summarized as the process whereby
employees are involved in decision making processes, rather than simply
acting on orders.
 Participation is very necessary and has become an even more nebulous
concept and has undetermined relationships with newly emerging
constructs and organizational practices such as empowerment, work teams,
involvement and flattened organization design.
• Our intent is to preview the various types of techniques regarding
participation
INDUSTRY PARTICIPATION
SPECTRUM

Ownership Control
 CO-OPERATIVES
 A co-operative is an autonomous association of persons
united voluntarily to meet their common economic,
social, and cultural needs and aspirations through a
jointly-owned and democratically controlled enterprise.

 In Co-operatives the mode of participation is via ownership of

the assets.

 Problems faced by Co-operatives

 Inability to attract capital to compete in today’s global market
 Difficulty in attracting members to serve as directors
 CO-PARTNERSHIP
Usually a family owned enterprise, where a major
proportion of the share capital is given to the
workers and the rest is retained by the family.
When and Why was it started..??
Started by the Scott-Bader Commonwealth in
Northampton, England towards the end of the 19th
century.
Purpose – to involve employees in the working of
the business, reward them and secure their
future.
Greater Rewards - - - Greater Motivation - - -
Greater Involvement - - - More Profits
CO PARTNERSHIP IN
WORKING
John Lewis, a leading retailer in Britain uses
co-partnership to involve its employees in the
business.
Employees are referred to as ‘partners’.
Involvement is one aspect of participation.
The other aspect is of control, where
partners enjoy empowerment in the business.
The partners of John Lewis have the right to
‘elect’ 2/3rds of the board.
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 ESOPS
Employees share ownership plans (ESOPs) are a
method of giving the workers of an organization
the chance to participate in the profits of the
organization, via the issuing of shares to each
worker at the end of the year taken as cash. A
plan can be set and the dividend on them will be
received in years to come.

ESOPs occur when a corporation is owned in

whole or part by its employees.
 Merits of ESOPs:
 There are substantial tax benefits for employee ownership
companies.
 Employee stock ownership plans (ESOPs) are set up by companies
as a kind of employee benefit trust.
 Employees do not pay taxes on the contributions until they receive
a distribution from the plan when they leave the company.
 Esopsgive the employees great tax benefits i.e. they don’t need to
pay taxes on the additional income.

Demerits of ESOPs:
 While this form of participation is intended to provide participation
via profit share and a feeling of ownership, they do not confer any
meaningful ownership but in long run provide a greater opportunity
for worker control.
 REPRESENTATIVE
DEMOCRACY
It is one of the extremes of participation
spectrum
Here, the people elect their representatives
The organization has a degree of freedom in
what it does but is restricted by the fact that it
is periodically answerable to the people
Two approaches
German Approach - positive control.
British Approach - negative control.
 SOCIO TECHNIQUES
Socio techniques are an attempt to enable workers to
participate in their work by stimulating them to greater
effort which will lead to greater satisfaction for them.

Socio techniques came into existence due to poor quality

of output and vandalism.
Socio-technical design is an attempt to improve Quality
of Working Life

Job enrichment and Job enlargement are also the other

techniques that fall with in the categories of socio-
techniques.

Other techniques include quality circles and

 Satisfied workers can be more productive
Socio-techniques reduces labor turnover rate and
absenteeism from work.

The problems associated are:

§Some workers do not want to their job to be enlarged or

enriched

§There are jobs whose nature itself is difficult to enrich or

enlarge.

These techniques are no doubt a good idea but they are

 CONCLUSION
Co-Partnership falls in the middle of the
participation continuum, where ownership is
not entirely vested on the employees (as in
the case of co-operatives) and
where the employees do not have full,
direct control over decision making and
working practices of the business (as in the
case of sociotechnical methods of
participation)
It has very well balanced both the aspects of
participation and has qualified the ‘modern
organization’ using this method as a