Employee involvement, empowerment & commitment


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Employee involvement, empowerment & commitment

  1. 1. 10/31/2013 Iman M. Ahmed Ibrahim, HRM, Mba5, sem.3
  2. 2. CHAPTER FOCUS the effectiveness of employee involvement EI initiatives as seen from managerial point of view. The discussion is based on findings of many surveys undertaken in large British companies. Commitment and empowerment as objectives to be achieved through EI is embodied in the analysis. Important points covered: EI concept, importance and objectives; types of schemes; lessons learned and strategies.
  3. 3. EI was identified as “offering employees a feeling-state, such as belonging or commitment; information about the organization and its environment; some financial reward; a share in decisions regarding: Work organization ; Personnel issues; Social matters; Business matters.
  4. 4. THE IMPORTANCE OF EI: management pay greater attention to support their employees, because of : • labor market pressures; • the need to improve cost competitiveness; • the need to gain cooperation for the introduction of new technology; • The need to enhance competitiveness; • the importance of EI is stressed as a source for improvement in employee relations and was seen as key feature of personnel policy.
  5. 5. OBJECTIVES FOR EI • Develop a positive attitude: improve morale; increase loyalty and enhance sense of belongingness; • Create business awareness: improve knowledge and understanding of the reason for management actions; • Incentive/ motivation source: enhance cooperation and team spirit; • Increasing employee influence/ ownership: increasing Job control; • Trade unions: restrict scope of union dealings.
  6. 6. TYPES OF SCHEMES 1. Job redesigns developments: Benefits: they are means to improve performance in term of quality and task flexibility, thus enhancing work experience and skills. 2. Quality Circles QCs: Benefits: improved quality; cost savings; increased employee commitment and willingness to be flexible and enhanced supervisory authority and leadership skills. Problems: they neglect top management support; the need for a facilitator to promote and sustain the programme; getting union in side.
  7. 7. TYPES OF SCHEMES 3. Team working: Benefits: advocates for task flexibility, cooperation, increasing quality and productivity. Problems: tamed and harnessed to the goal of management; Loss of senior management backing or direction ; reluctance of managers to hand over responsibilities to teams. 4. Total Quality Management TQM: Benefits: commercial success comes ;creating a culture of continuous improvement Problems: there are doubts concerning its participatory potentials:
  8. 8. TYPES OF SCHEMES 1. Team briefings: Benefits: increased organizational commitment; reinforcing management legitimacy through information provision. Problems: seen as dispensable in times of pressure tending to reduce credibility; unlikely to transform employees attitude; bureaucratic, liable to decay. 2. Two way communication: Benefits: offering employees a chance to express their views and be listened to thus increases commitment. Problems: contingent on the atmosphere of employee relations; maintaining momentum is likely to be formidable.
  9. 9. TYPES OF SCHEMES Joint Consultation Committees: Benefits: • active cooperation and support; • exclusion of unions from employee representation. Problems: • Committees have little impact on employee relations; • Committees may breakdown because of the severity of problems or because of conflicting expectations . Important considerations:Consultations to be undertaken in advance of decisions being settled; ensure that JCCs don’t lose momentum;Resourcing;reporting back to constituents;Training;senior representation; swift action; keep union informed.
  10. 10. SCHEME TYPE Objectives: attitudinal change; ant-unionism; making society more justice; securing commitment. Types: 1. employee share ownership ESO: gaining a direct stake in the company ; 2. profit sharing PS: providing a cash bonus from the revenue surplus. Performance: FP may have indirect influence in attitude, employees mention that ESO makes them work harder and make them more cost conscious.
  11. 11. CONCLUDING REMARKS Practical lessons: • • • • • • • • Management commitment should run further; Support for EI ensured throughout the management system; Proper advance consideration of objectives is necessary; Training is essential: show commitment &ensure competence; Adequate and impartial monitoring of schemes is essential’. Problem and shortcomings should be identified; Attempts to bypass or undermine established trade unions by means of EI schemes are likely to fail. EI must fit with HRM strategy: EI is one key to workforce performance that is essential for achieving a competitive edge.