Participation Theories - Final

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 sociotechniques. 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