Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.1 Empowerment Disadvantages Increased workloads and hours Increased stress Time consuming (consultation) Managers feel loss of status and sense of chaos Managers feel loss of power and control over employees Can only work in high trust organizations Where are the boundaries of responsibility? Who takes the blame? Only certain types of workers will respond positively to having autonomy, increased complexity of work and feedback. Porter and Lawler

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.2 The Degree, Level, Form and Range of Employee Involvement The degree of involvement (the extent to which employees influence the final decision); The level of involvement (whether at job, departmental or organisational level); The forms of involvement (direct, indirect and financial); The range of the subject matter being considered in the involvement scheme.

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.3 European Union Employee Participation Measures Employees have a right to be informed of a company's economic situation and employment prospects, decisions that may lead to substantial changes in how work is organised and contractual relations. Information and consultation must take place at the appropriate time, and at the relevant level of management. This will be done using employee representatives (defined according to national law and practice). Employers and employees can meet their obligations through existing agreements in conformance with the directive. Employers may withhold information if its disclosure would seriously harm the business. They can also require employee representatives to keep information confidential.

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.4 Some factors that make for the proper working of EI A willingness by management to concede some of their prerogatives; The need to train managers in EI initiatives such as teamworking; The need for a clear policy regarding the role and prerogatives of line managers in relation to senior management and the workforce under their supervision; The need to train workers in group skills such as presentation, leadership, assertiveness and problem solving; The need for providing proper feedback mechanisms that clearly indicate that the workforce is being listened to; The need for action to implement group decisions, which reinforces the view among the workforce that their contributions are well received; The need for conflicting views to have a place in developing initiatives.

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.5 Types and Levels of Involvement Downward communications (top down), for example from managers to other employees. This includes forms of EI such as house journals, company newspapers, employee reports and regular briefing sessions, often with videos as well. Upwards, problem-solving forms, which are designed to tap into employees’ knowledge and opinion, either at an individual level or through the mechanism of small groups. This includes practices such as suggestion schemes, attitude surveys, quality circles and total quality management and customer care programmes. Financial participation via schemes that attempt to link rewards of individuals to the performance of the unit or the enterprise as a whole. This includes schemes such as profit sharing, employee share ownership, and value-added or establishment-wide bonus arrangements. Representative participation, in which employees are involved through representatives drawn from among their number, often—though not always— on the basis of union membership, for example JCCs, advisory councils, works councils, co-determination, and collective bargaining.

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.6 Types of Communication Downward Communications –The company magazine or newspaper –Team briefings Upwards, Problem-solving Forms of Communication –Quality circles –Teamworking –Job Design and Team Working

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.7 Types of Financial Participation Profit-Related Pay Employee Share Options Profit Sharing—with cash rewards; Profit Sharing—through shares in the company (approved deferred share trust, ADST); Save-As-You-Earn share option schemes (SAYE); Executive Share Schemes.

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.8 Empowerment Definitions ‘Empowerment is a change management tool which helps organisations create an environment where every individual can use his or her abilities or energies to satisfy customers.’ Cook and Macauley, 1997 ‘An empowered employee is one who can do whatever they have to do on the spot to take care of a customer to that customer’s satisfaction.’ Tscholl, 1997 ‘Most empowerment schemes are designed not to give workers a very significant role in decision making but rather to secure an enhanced employee contribution to the organisation. Empowerment takes place within the context of a strict management agenda.’ Wilkinson, 1998

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT 14.9 Empowerment Benefits to the Individual Enhances job satisfaction Creates team work Enhances loyalty Acquisition of new knowledge and skills Ownership of work

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT Empowerment Benefits to the Organisation Increased productivity Delayering of the decision making process Decreases in staff turnover More effective communication

Human Resource Management, 4th Edition © Pearson Education Limited 2004 OHT German Co-determination: Works Councils The works council has a right to information concerning: –Health and safety; –The organisation of work; –The working environment and jobs; –The hiring of executives; –Planned changes in the company that could result in considerable disadvantages to employees. In addition, the works council has the right to make suggestions –During the formulation and implementation of personnel planning; –Issues re-vocational training (apprenticeships, etc.); –Other training and development measures.