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Submitted by: Mir Zahid Hasan Id: 3-11-21-066 Abul Kalam Azad Id: 3-11-21-052
MBA (Evening), 21st Batch Department of Management Studies Faculty of Business Studies University of Dhaka
Submission Day:
18 July 2012
Acknowledgement
Term Paper is much more important and essential means for acquiring knowledge because the knowledge of a student does not get fulfilled until he acquires knowledge theoretically and practically. Organizational behavior controls many things like reputation, production, market status, future forecast and profitability. At the very beginning, we obviously express our deepest thanks and appreciation to our honorable course teacher Professor Dr. Ataur Rahman, Department of Management Studies, University of Dhaka for giving guidelines and advices in preparation of our Term Paper. In this connection, I would like to give thanks to my classmates and friends for giving me different information related to participation process in organization that inspired us to make a complete Term Paper.
Table of Contents
SL.N o 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Acknowledgement Understanding Employee Participation Objectives of Participation Importance of Participation Benefits of Participation Problems of Participation Conditions for Participation Process of Participation Programs of Participation Factors contributing Participation Contingency factors of Participation Impact on Managerial Power Important consideration of Participation Union Attitude to participation Management concern about participation Questions References 02 04 05 07 08 10 12 14 14 16 18 18 20 22 23 25 26 Contents Page No.
Definition of Participation
Keith Davis & Newstrom defined Participation as Mental and Emotional (and Physical) involvement of people in-group situations that encourage them to contribute to group goals and share responsibility for them.
Dale S. Beach defined Participation is used to designate the process by which people contribute ideas towards the solution of problems affecting organization and their jobs.
Examples of Participation
When there is a problem and the manager does not make the decision himself, he and his team come out with a solution together as a team and try to solve the problem.
OBJECTIVES OF PARTICIPATION
Organization needs to practice participation to achieve some objectives. These are described below1. Greater
Voice
in
Decision:
primary
goal
of
employee
participation is to give organization a greater voice in decisions about work-related matters. Employee can share their problem. They also suggest some solutions to those problems.
2. Economical: Increasing productivity by improving relation between
the major two parties in the organization. Employees can produce quality product. Workers become more skill-full of which reduce the level of wastage.
3. Social: Organizations are considered as social system. Participation
considers the workers as human being. Participation increases the dignity of the employees.
4. Psychological:
Participation themselves
change as an
employee integral
behavior. of the
Employees
consider
part
industrial peace and harmony. A way to industrial democracy. It leads to higher productivity as well as increases production.
6. Quality of Working Life: Improves the quality of working life of
the employees. Because it allows the workers involvement in work. And satisfaction obtained from work by various ways.
7. Mutual Co-operation: To secure the mutual co-operation of
employees and employers in achieving industrial peace. It helps achieving greater efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation. So mutual co-operation can play a great role in economical development of a country.
8. Conflict Resolution: It is easier to create a conflict than to resolve
one. Some of the decision may create conflict between the parties. But when there are participatory management chances of conflict is very low.
9. Better Team Effort: Team effort is very important for smooth
running of an organization. In a participatory environment every member has scope of sharing their suggestions and ideas. As a result a better team can be build.
10.
Human
Resource
education to workers in the management of industry. It fosters initiative and creativity among them. It develops a sense of responsibility. Informal leaders get an opportunity to reinforce their
position and status by playing an active role in decision-making and by inducing the members of the group to abide by them.
IMPORTANCE OF PARTICIPATION
Generally higher authority makes the decision and the lower level of employees implement the decision. In such situation employees face various problems. When employee participation is required that has a positive impact on the organization. Employee participation is very important for an organization and the importance are:
1. More Productivity: The increased productivity is possible only
when there are existing fullest co-operation between labor and management. It has been found that poor labor management relations do not encourage the workers to contribute anything more than the minimum desirable to retain their jobs. Thus participation of workers in management essential to increase industrial productivity.
2. Increase Job Satisfaction: Participation increases job satisfaction
of the employees. Employees who participate in the decisions of the company feel like they are a part of the team with a common goal. They find their sense of self-esteem and creative fulfillment heightened.
3. Quality of Work: Participation make employee committed toward
the organizational goals. So they give the best effort to fulfill their commitment. Besides this, employee helps each other in solving different problem that ensure the quality service or product.
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 change.
5. Commitment to Goal Achievement: Decisions are made with the
consent of the employees. It increases the commitment of employees to the organization and the decisions they make. They try hard and soul to fulfill their commitment.
6. Industrial Conflict Reduction: Industrial conflict is a struggle
between two organized groups, which are motivated by the belief that their respective interests are endangered by the self-interested behavior of the other. Participation cuts at the very root of industrial conflict. It tries to remove or at least minimize the diverse and conflicting interests between the parties, by substituting it with cooperation, homogeneity and common interest. Both sides are integrated and decision arrived at are mutual rather than individual.
7. Low Turnover: Employees find their sense of self-esteem through
participation. It also creates the opportunity to meet up employees demand. As a result turnover rate goes downward.
8. Cordial
opponent parties. A good relationship between the two parties is necessary for the smooth operation of the business. Participation helps in building a cordial relationship as managers respect employees knowledge, experience and education.
a scope to present their opinion. It makes employee loyal to the management. For this organization can achieve its target and employee morale improves.
BENEFITS OF PARTICIPATION
Participation plays great role to the development of the organization in many ways. Advances or benefits of participation are described below:
1. Development of Motivation: Participation creates positive work
environment. Employees may have the chances to show the creativity and analytical ability. These opportunities make them more motivated.
2. Less Cost and Time: There are a few costs, however, to obtaining
participatory input. Participatory decision is a group decision. So less time is required to implement it. And the cost of participation is less than its benefit in case of successful participation.
3. Increases Creativity and Innovation: 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 is increased that a valid and unique idea will be suggested.
4. Increase Capacity & Influence of Management: Participation
creates mutual faith, understanding and cooperation. So employees hardly disagree with the managers decisions. It indicates that
opinions and take them seriously. For this employees consider themselves a part of the organization. This results a positive environment at work place.
6. Effective Decision: Decision is the process of selecting the best
alternative. For a single problem different people may give different solutions, even thousands of solutions. So participation facilitates the decision process.
7. Better Operation: Organization will run better if staffs are more
loyal, feel needed and wanted. They feel that they are respected, and their opinions count. If management proactively seeks their input into decision-making, decisions tend to be better when they can call on a wider range of knowledge, information and experience.
8. Increases the Trust: Trust is an important factor of leadership.
Participatory approaches usually mean that decision-making is more transparent. That, in turn, increases the trust of the staff, and the leadership of the manager is increased. And transparency itself if an added benefit to this approach.
9. Work Enthusiasm: Manager may accept the employees idea or
not. When their ideas are accepted they feel proud and become more enthusiastic to their work. When management does not accept their ideas and shows the logic behind refusal, work enthusiasm will not reduce.
10. Acceptance of Decision: Employees accept any kind of decision
10
suggestions and proposal while making decision. As they participate in decision process so workers accept the decision and work to implement it.
11. Increases Goodwill: Participation helps building good relationship
between management and employees. It increases employees efficiency and they can produce quality product and services for the customers. A good working condition is available at work. All these things increase the goodwill to the organization.
PROBLEMS OF PARTICIPATION
Though participation has many advantages; it has some problems too. The problems of effective participation are described below:
1. Lack of Competence: In participation employees put their own
opinion. In some cases incompetence people are bound to put their opinion for managements pressure. Management ignores unexpected and irrelevant opinion. Inexperienced and illogical opinion creates some problem to participation.
2. Unwillingness of Management: If the benefit of participation is
less than its cost management will not entertain participation. Management thinks that participation may reduce their authority. So they discourage it.
3. Political Involvement: Political parties influence the participation
process. They influence it to achieve their own interests. It obstructs the purpose of participation.
4. Less Training: Not only the employees but also the management
have less training in this regard. Management cannot create the favorable environment for participation. An unable to manage it
11
properly. Employees are unaware of how to behave at participation. Deficiency of proper training is a problem of effective participation.
5. Non-cooperative Attitude: Employee expects management to
accept their opinion. But it is not possible for manager to accept all the opinions. So employees become dissatisfied with management which results non-cooperative attitude of employees.
6. Lack
of
Education
and
Updated
Knowledge:
To
make
participation successful both management and employees should have education and updated knowledge on different thing. Most of the participants are not updated in terms of knowledge.
7. Lack of Trust: Communication is the process of transferring ideas,
thoughts and knowledge from sender to receiver. So communication skill is very important for effective participation. Without this skill participation can never be effective. Most of the employees communication skill is below average.
8. Trade Union: All most all the large organization has trade unions.
Member or Leader of trade union interfere the participation program for their personal interest. Again political party may use the trade union in order to fulfill their interest. As a result participation cannot be effective and fruitful for the organization.
9. Universal Participation: Everybody wants to share his or her
opinion in decision process. But all of them cannot effectively participate in every subject. On the other hand it takes long time to come to an end.
12
There are some conditions or prerequisite for participation on which the success is depend. These are discussed below:
1. Adequate
Time:
There
will
be
needed
adequate
time
to
participate. It does not occur suddenly. Sudden participation does not bring out any fruit. Because time is needed to think something for better outcome. So proper time should be necessary for taking employee participation.
2. Cost vs. Benefit: Every participation take some cost. Management
should incur some expenditure for any type of participation. The benefit through this participation must have to be fruitful. That means the overall return should have to be increased by this participation.
3. Employee Interest: The interest to participate in any type of
decision making process should be encouraged. For this the opinion of participant should give importance. If the participant thinks that his/ her opinion is not important, its just a formality then they will lose the interest of participation.
4. Employee
needed the ability to participate. The physiological, physical etc. ability of the participants should be sound. The disability of thinking something should not be participating in any kind of organizational activities. The employee should have the ability to discuss something.
5. Threat: The employee should feel secure after participation. In
meeting employee should not be feel uneasy or embarrassed. There should be sufficient provision for the participation with safety.
13
his own way. Or he must have the provision to give suggestion to do the job easiest way. Because who do a job only he knows how the job can make swift and easier.
7. Top Management Support: The top management will support to
the participant. They will be considering the opinion seriously. They will then discuss on it with the expert. After success on the pilot project, the opinion holder should be rewarded.
8. Responsibility: The employee also should have the responsibility
of
doing
something
for
the
organization.
The
organization
management should have the responsibility to develop participation manner among the employee. Thus the participation will be fruitful.
9. Policy Support: The organization should have policy to encourage
the participation. There will be good rewarding system for the successful participation. The employee should be rewarded also. This will bring the participation manner in the mind of employee.
10. Culture: Developing the culture of participation in the organization
is the best way to find the desire success. The management as well as employee will be habituated with the participation. The participant will have to be responsibility about their jobs as well as organization.
PROCESS OF PARTICIPATION
14
A simple model of the participative process is given in fig. 1. It indicates that in many situations participative programs result in mental and emotional involvement that produces generally favorable outcomes for both the employees and the organization. Participating employees are generally more satisfied with their work and their supervisor, and their self-efficacy rises as a result of their new-found empowerment.
Outcomes
Participative programs
PROGRAMS OF PARTICIPATION
Programs usually are clusters of similar practices that focus on specific approaches to participation. One or more can be used in single company. Some organizations give power to managers to take their programs in their own style. Some are specified. The programs are as follows that are used in Participation:
1. Consultative Management: This type of Participation takes the
consultant opinion about the employee. The no. of opinion is less in number. Management takes decision through consultancy.
2. Democratic
majority opinion is given preference. The management takes decision in democratic way. The entire employee has an equal opportunity to participate.
15
committee to increase production. The committee opinion gives the foremost preference. The all responsibility goes to that committee.
4. Suggestions
suggestions from the employee. The final decision takes only by the management.
5. Total Quality Management: The employee can make the quality
product only. Because only the employee knows how quality can be assured. Employee is liable for that.
6. Suggestion Programs: Suggestion programs are formal plans to
invite individual employees to recommend work improvements. In most companies the employee whose suggestion results in a cost savings may receive a monetary award in proportion to first year savings. Although many suggestion programs provide useful ideas, they are a limited form of participation that accents individual initiative instead of group problem solving and teamwork.
7. Quality Emphasis: For many years, both union and nonunion firms
have organized groups of workers and their managers into committees to consider and solve job problems. These groups may be called work community, labor-management committee etc. They have broad usefulness for improving productivity and communications because most of the employee can be involved.
8. Self Managing Teams: Some firms have moved beyond limited
forms of participation, allowing a number of major decisions to be made by employee groups. These progressive approaches incorporate extensive use of group discussion, which makes full use of group ideas and group influence.
16
the product you make; today that slogan has occasionally been replaced with buy the company you work for. Employee ownership of a firm emerges when employees provide the capital to purchase control of an existing operation. The stimulus often comes from threatened closings of marginally profitable plants, where workers see little hope of other employment in a devastated local economy.
research. Positive result of the research encouraged participation. So management should analyze the research result carefully.
2. Pressure
for
Productivity
Improvement:
Pressure
for
productivity improvement may create a positive environment for participation. It encourages employees to take part in participation process. This results increases in productivity.
3. Utilization
of
Employee
different types of skills, experiences and talents. Participation makes a scope for management to use those things properly. When management can use those things in right way organization can easily reach to its target.
4. Employee Desires & Expectations: Every worker has various
17
workers response to participation program to meet up their desires can make the participation successful.
5. Ethical Argument: Ethical strengths of the employees affect
participation. When ethical arguments are strong, participation become more effective and permanent in nature.
6. Leader: The attitude of leader is a vital thing in this regard.
Democratic leader has some advantage than the autocratic leader. Autocratic leader may ask for employees participation, but he makes the decision. This kind of situation may hamper organizational development.
7. Environment: Participation is affected by environment in which the
organization operates. So environment should be considered for the effective result of it. When environment is favorable participation becomes successful.
8. Size of Organization: Many survey on employee involvement
found a significant positive relationship between organizational size and employee participation practices. This may be due to the fact that larger organizations are more likely to adopt innovative practices and/ or because they have greater motivational problems that they try to resolve through participation management. Some other studies have found a negative relationship between organizational size and levels of employee involvement. It may be that different relationships have been found because the direction of the relationship between organizational size and employee involvement depends on the type of participation employed.
9. Employee: Employees are one of the most important factors that
18
participation process they will not act positively. So it will be very difficult for the organization to achieve its goals.
10. Trade Union: All most all the large organizations have one or more
than one trade union in it. Mentality of unions leader or member is another important factor which affects the participation.
desire more participation than the others. Some other desires only a minimum of participation and are not upset if they are not actively involved. The difference between an employees desire and actual participation gives a measure of the potential effectiveness of participation assuming the employee has the ability to contribute.
2. Responsibilities
of
Employees
and
Manager:
critical
contingency element in the success of any participative program is the degree to which all employees recognize that the opportunities provided are accompanied by a set of responsibilities. The employees are agreeing to fully responsible for their actions and consequences managers. operating within organizational policies. This responsibility of employee gives a balance of work for the
19
Participation plays a great role to the development of managerial power of the organization in many ways which are listed below1. Motivation:
Participation
creates
positive
work
environment.
Employees may have the chances to show the creativity and the analytical ability. These opportunities make them more motivated.
2. Less Cost and Time: There are a few costs, however, to obtaining
participatory input. Participatory decision is a group decision. So less time is required to implement it. And the cost of participation is less than its benefit in case of successful participation.
3. Increases Creativity and Innovation: Creativity and Motivation
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 is increased that a valid and unique idea will be suggested.
4. Increase Capacity & Influence of Management: Participation
creates mutual faith, understanding and cooperation. So employees hardly disagree with the managers decisions. It indicates that manager can easily influence the employees to implement various decisions.
5. Positive Work Environment: Managers listen to staff, ask their
opinions and take them seriously. For this employees consider themselves a part of the organization. This results a positive environment at work place.
6. Effective Decision: Decision is the process of selecting the best
20
loyal, feel needed and wanted. They feel that they are respected, and their opinions count. If management proactively seeks their input into decision-making, decisions tend to be better when they can call on a wider range of knowledge, information and experience.
8. Increase the Trust: Trust is an important factor of leadership.
Participatory approaches usually mean that decision-making is more transparent. That, in turn, increase the trust of the staff, and the leadership of the manager is increased. And transparency itself is an added benefit to this approach.
9. Work Enthusiasm: Manager may accept the employees idea or
not. When their ideas are accepted they feel proud and become more enthusiastic to their work. When management does not accept their ideas and shows the logic behind refusal, work enthusiasm will not reduce.
10. Accept of Decision: Employees accept any kind of decision
without showing an argument. Because management ask their suggestions and proposal while making decision. As they participate in decision process so workers accept the decision and work to implementing it.
11. Increases Goodwill: Participation helps building good relationship
between management and employees. It increases employees efficiency and they can produce quality product and services for the customers. A good working condition is available at work. All these things increase the good will of the organization.
21
organizations practice participation. But management of most organizations is reluctant to do this. For this kind of attitude of management in many private organizations faces many problems.
2. Employees Eagerness: Employees feel a great attraction for
participation.
They
consider
themselves
as
part
of
the
Environment:
Organization
has
some
rules
and
regulations. All must abide by these rules. In participation program the environment is more or less formal.
4. Influence
influence on participation. So employees cannot freely share their thinking. In most of the cases management just listen to the employees speech, but make decision themselves.
5. Ambiguous Objectives: Private organization faces problem to
identify the appropriate objective of participation. As a result participants cannot participate successfully. It creates dissatisfactions among participants.
6. Employees Decisions are Accepted: Generally management
makes the decisions. Though it is rare but in some cases management accepts employees decision. Employee feels proud
22
company participation is a part of policy only. And other companies really practice it.
8. Reward System: Reward for participation is a new thing for most
of the company in our country. But some organization practice reward system in participation program. They reward for the best decision.
9. Number of Participants: There is no hard and fast rule about
optimum
number
of
participants.
Generally
in
structured
organization number of participants is less than that of an unstructured organization. Large participants lengthen the decision process.
10. Active Participation: Now-a-days many organizations encourage
active participation of the employees. When there is a reward system and no threat from management, active participation is ensured. Organization can be benefited in many ways through the active participation.
is participated with the management body, their control may be loose. Thats why union leader wants to make them forward to the
23
management body. The employee is not able to participate with the management.
2. Progressive
participation. They find their next generation through participation. They encourage the participation.
3. Secure Safety: With the help of the union, after participation the
employees feel secured. There will be no threat of Insecurity. This will ensure more & more participation in organization.
4. Congenial Environment: Union leader through their positive and
ethical dialogue make a congenial environment for participation. Union makes the participation easier.
5. Ethical Practice: The union can take the participation practice as
an ethical for the organization. Union also makes the possibility of making the participation a habitual behavior.
6. Reward System: A good participant will enjoy to taking his or her
reward for participation. Participation will be bored if it has no benefit for the employee. Union ensures this with the management.
7. Unethical Practice: The Greediness of the some of the leader
make stuck up the participation. They make the participation process harder. The total system became stuck up for them.
very specific. Every participant must have the clear idea about the
24
objective. When object is clear to all the participants, they can provide constructive opinion. So, for an effective participation, objective should be specific.
2. Threat less Environment: The environment should be positive
and convenient. There should not be any threat on participation. If there is any kind of threat, employees will not be willing to share their ideas.
3. Development of Communication Skills: Communication skill is
very important for participation. Both the parties should have this kind of skills. Otherwise they cannot transfer their ideas or messages properly. And misunderstanding can be created.
4. Quick Implementation of Decision: Participation is for better
decision. But decision process is delayed for various reasons. To implement the decision management do not take the steps quickly. As a result participants become demotivated. On the other hand quick implementation of decision encourages participations.
5. Reward System: Reward system is not commonly practiced for
participation. If there is the best solution to a problem when reward system is available for participation.
6. Enough Time: Participation is not applicable in case of emergency.
Many people share their ideas and thoughts, after getting all the alternatives they analyze those.
7. Selecting Appropriate Participations: Success of participation
depends on size, knowledge and skills of participants. Those who dont have enough knowledge and skill about the subject matter of participation should allow as participation.
25
support is very important. If management do not support, no employees show their attraction to participate. When management allows this, all the employees take part spontaneously.
9. Explanation of Rejection: Usually management does not explain
the cause of ignoring employees opinion. But when management provides a logical reason of their rejection, it indirectly encourages participant. It develops participants positive attitude for future participation.
10. Related to Interests: Subject of participation should involve the
interest of employees. Decisions should be in favor of their interest. Interesting and relevant subject inspire employee to participate.
QUESTIONS
26
1. Define participation? What are the objectives of participation? 2. Is participation enhancing the dynamism of the organization? 3. What are the pros & coins of participation? What conditions need to
factor needed for participation? Explain why? 6. Participation has a great impact on managerial power Explain.
7. State the important consideration of participation? Is union leader
REFERENCES
27
Perceptions of the Grapevine: Its Value and Influence, Journal of Business Communication Spring 1974, pp. 12-20.
2.
Keith Davis, Management Communication and the Grapevine, Harvard Business Review, September-October 1953, p. 44.
3.
Keith Davis, John W. Newstrom, Organizational Behavior: human behavior at work, 11th edition published by Tata McGraw-Hill Pub. Com ltd. Delhi, p.184.
4.
www.wikipedia.org
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