Calicut University 1st year B. Com Business Management Module 1

1. Business
Management
1.5

2. Management By
Participation
Employee
involvement
Participative
Decision
Making
Participative
Management
Participatory
Management..

3. Motivational Technique Acting, engaging, meeting
higher order needs
Employee(stakeholder) is
incorporated into the
management process and has
an influence on the decision
making process(at all levels)
- Problem analysis
- Strategy development
- Solution implementation etc.
Human Relations Approach

4. "Participation refers to the mental and emotional
involvement of a person in a group situation which
encourages him to contribute to group goals and
share the responsibility of achievement" - Keith
Davis
WPM(Worker' Participation in Management) -
Participation of non-managerial employees in the
decision making process of the organisation

5. Process of
participation
Information sharing
Training
Employee decision making
Rewards

6. Basic Requirements:
Willing to give up
control
Ready to accept
ideas
Careful Planning Cultural change Genuine and honest
Trust Willing to participate
Provide information
or training
Encouragement Guiding employees
Provide criteria Give sufficient time
Integration of
suggestions
Ask for alternative
suggestions
Create confidence
Union
representation
Clearly formulated
objectives
Feeling of
participation
Effective
consultation
Faith

7. Levels of workers
participation in
management
 Information participation of workers
– Receive information & express their
views
 Consultative participation of workers
– Act as consultant(advice) -
safety, health, welfare at workplace
 Associative participation of workers
– Management morally bound to accept
and implement the opinion of workers
 Administrative participation of
workers – Employees select the best
decision for implementation
 Decisive participation of workers –
Take decisions together

8. Purpose
To manage resistance to change
Encourage communication at all levels
Minimum industrial conflict
First step to establishing democratic
values

9. Forms
Collective Bargaining
Suggestion schemes
Work councils
Works committees
Joint Management Councils and Committees
Joint Decision Models
Self-Managing Teams
Worker' Representation on Board
Co-partnership
Quality Circles
Total Quality Management

10.  F W Taylor
 Identifies the practical deviations from the standards or the best practice
 Let the senior management to concentrate on more important work
 Significant deviation reported to Sr. Management  “Exception has occurred”
 Accounting department  Budget forecasting – NOT overstated/understated  Variance
analysis Significant deviation
 General business application + Business intelligence application  Skilled staff +
Software tools

11. Features
 Comparison of planned and actual results
 Management intervention only if there is deviation
 Minor deviations  low-level supervisors , Huge deviations  Top level
management
 Responsibility to take decisions and fulfil their work by themselves
 Reduce managerial load
 Can bring forward business errors, oversights, ineffective strategies etc.

12. Steps:-
1. Identifying and specifying Key Result Areas (K.R.A.s)
2. Setting standards and outlining permissible deviations, especially
K.R.A.s
3. Comparing actual results with the standards
4. Computing and analysing deviations
5. Identifying non-permissible, that is, critical deviations in K.R.A.s
6. Strategising and taking corrective actions

13. Importance:
 Easy determination of responsibility
 Saves Time
 Optimum utilisation of abilities
 Increases productivity
 Enhances research and development
 Develops subordinates
Advantages and Disadvantages

14. Management By Motivation (MBM)

15.  Observe employee performance throughout an evaluation period
 Give employees regular feedback
 Schedule public announcements to recognise employee
 Promote employees
 Ask employees to volunteer for roles
 Collect employees Opinion

16. Methods
 Monetary incentives
 Non-monetary incentives :
Security of service
Praise or recognition
Suggestion scheme
Promotion opportunities
 Challenging jobs:
Job design
Job redesign
Job enlargement
Job rotation
Job enrichment
 Merit pay
 Spot award
 Life long learning
 Skill-based pay
 With positive reinforcement
 Use of empowerment
 Goat-setting methods