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PARTICIPATORY MANAGEMENT MODELS

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Presentation on theme: "PARTICIPATORY MANAGEMENT MODELS"— Presentation transcript:

1 PARTICIPATORY MANAGEMENT MODELS
in chemical sector

2 The definitions What is management?
Management: the process of planning, prioritizing, and organizing work efforts to accomplish objectives within a company/organization What is a management style? Management style: the specific approach of managers for achieving the planned objectives. It includes: the way decisions are made, how the activity is planed and organized, and how the authority and responsibility are defined.

3 The definitions What is participatory management?
Participatory management: a management system in which the employees of company/organization play an active role in the decision-making process. It is directly related to the business concept and can consist in various approaches, according to the level of engagement.

4 The origin of participatory management
This management practice is originated in a human relations movement manifested in the 1920s. Based on an intensive research in management and organization performed in that historical period, the academics stated for a series of principles that have been developed by experimental means. Notable example: the Hawthorne Experiments; the publications of Bulletin of the Taylor Society.

5 The cultural perspective
Many studies have been conducted worldwide with regard to the participatory management in various cultures (social and economic). The European trend: the employees who feel listened by the managers and have a role in decisions, manifest as significantly happier at workplace and more productive than those who don´t benefit of these conditions. The American concept: the implementation of participatory leadership is correlated significantly and positively with an increased motivation for teamwork, more effectiveness of internal communication, considering the group participation in the decision-making process, and also in the control process. The globalized tendency in most of modern national economies is to use the participatory management as an alternative to traditional vertical management structures, which was indicated by the research results as lowering the interest of employees for leader's expectations. The cultural perspective

6 Types of participatory management
Information Management Shared Decision-Making Management Training Management Mentoring Management Recognition Management Types of participatory management

7 Information management
Information management is the most common type of participatory management, for being relatively easy to implement at company level. Characteristics: An internal communication plan to share information with employees on: long-term strategies, financial action plans, relevant budgetary aspects Transparency of company context (position on market, important investments) An internal flow for comments, suggestions, opinions easy to access by employees Transparency of business strategy on medium and long term, marketing strategies, HR planning Information management

8 Shared Decision-Making Management
The shared decision-making can be considered as a type of participatory management, but some of its elements are also present in all other forms of participation. Characteristics: An internal set of common activities with employees: focus groups, brainstorming sessions, surveys, thematic working groups Empowerment of workers, autonomy in project work, self-monitoring and self-assessment Work organization based on standards, parameters, procedures open to consultation and contribution of employees An internal and open process of revision and evaluation for the improvement of organizational system Shared Decision-Making Management

9 Training management is a type of participatory management focused on creating competence and developing the quality of employee participation based on solid knowledge and understanding of the process. Characteristics: An internal ongoing training for employees, knowledge and skills development, professional upgrade Work on problem-solving approach, providing the employees with information, tools and resources An up-to-date information regarding the business environment and the company operations to ensure quality and knowledge founded contributions of employees Promotion of returned investment in training, enabling the employees to implement at workplace the competence acquired Training Management

10 Mentoring management can be implemented as autonomous type of participative management of in relation to the training management previously described. The choice of approach is depending on organizational culture and structures of companies. Characteristics: An internal system of mentoring for employees at all levels, continuously running at workplace Implementation of cross-training, workplace learning, supervised practice periods for new-skills or new responsibilities Promotion of professional networking, sharing of knowledge and experience among employees of same or different structures and departments Internal mentoring developed based on the best use of employees skills and competences as well as a coherent individual professional development plan Mentoring Management

11 Recognition Management
Recognition management is one of the most used types of participatory management, for being prompt and visible and creating positive work environment. Characteristics: A series of tools for internal promotion as forums for employee achievement, newsletters and meetings for sharing notable contributions and promoting results Leadership based of motivation, reward and positive feedback and reinforcement Increasing performance through positive examples and the visibility of direct contributions to the development of the company and business growth Recognition Management

12 Levels of employee involvement
The employee involvement can be structured by different levels that can be applied individually or as a whole. Level 1 – basic involvement: defined by ¨inform¨, where the managers directly communicate the decisions to employees in a one-way information approach Level 2: medium-low involvement: defined by ¨convince¨, where the managers proactively gain the commitment of employees towards the decisions made, focusing on the positive aspects and the feeling of co- ownership

13 Levels of employee involvement
Level 3 – medium-high involvement: defined by ¨cooperate¨, where the managers invite to input and co-decision of employees, as equally engaged in the process. Requires reconsideration of leadership model and a culture of responsibility. Level 4: high involvement: defined by ¨delegate¨, where the managers turn the decision-making process over the employees´ side through empowerment. Named also bottom-up leadership, counts with confidence, passion for business and strong sense of direction.

14 Effects of participatory management
The participatory management, independently of the choice for the type or level can have both positive and negative effects in companies. A successful implementation at workplace is always strongly related to conditions as: good communication flow, competent managers, clear strategy and organization and, the most important, mutual trust between employees and managers. The limitations or possible risks can be minimized by a well planned implementation, solid information of all involved (employees and managers) and the proactive attitude, goal oriented.

15 Effects of participatory management
Greater motivation and satisfaction at workplace Increased performance and independence of tasks completion Identification with organizational culture and business concept, commitment with company´s objective Increased productivity through promotion of innovation and creativity, focus on best use of competence

16 Effects of participatory management
Tense work environment, caused by ego-centrism and misunderstood authority Lower productivity, caused by excessive creative and innovative of work methods Decreased effectiveness of decision-making process, caused by cultural and individual differences Undermining leadership, caused by authority clashing

17 The perspective in chemical sector
Until recent years, the public in general, the civil society was little aware of the role of chemical sector in the economic development as a whole and its contribution to the development in quality of life. A continuously growing sector, the chemical industry is showing more and more their importance on the EU and global market. The employees in the sector and their representative organizations are calling for needed changes in the work environment and build a voice in favour of more participation and involvement in their companies.

18 The crisis and the austerity measures put their mark on the development of the chemical sector and the business strategy of the companies. The need for investments and the accentuated fragmentation generated a large number of medium size companies on the EU common market in competition with multi-national corporations. It is important to highlight also the strong inter-dependence between the chemical industry and the fast evolving technology used in research and productions, which requires, in addition to financial resources, also trained workers, able to adapt and perform. The changing context

19 Considering the market competition and the capacity, the companies in the chemical sector have developed business strategies allowing them to overcome the crisis and continue to grow despite the austerity conditions. Currently with one of the lowest unemployment rates and a focus on research and innovation, the chemical companies developed mostly based on classic management styles and left aside the bottom-up approaches demanded now by the employees in the sector. The business strategy

20 The chemical industry currently plays an important role not only in the EU common market, but also at global level, developing business relations all over the world and connecting with other industries. The focus on offering innovative and performing products in the conditions of a high level market competition and a fast-changing technology is making more and more visible the need for structural changes of business models currently implemented, in order to meet the marketing standards and to maintain (and improve) the position achieved in the general economy. The role of the market

21 General: -Degreasing trends in the chemical sector for some of EU countries caused by fall of productions -Unbalanced import-exports -Lack of technology transfer in recent years and the use of energy-efficient technologies Social: -Reducing the mass of workers employed in chemical industry leads to decreased influence of trade unions and other worker representation bodies in the sector -Gender unbalance (the workforce is rather male-dominated overall) -Need for improved work-life balance for the workers in the sector -Majority of senior/experienced workers profiles generates the need for youth employed strategy and plan of internship programmes Labour: -Outsourcing of a number of activities to specialised service providers, in addition to the absence of a national strategy on the privatisation of the sector -Low salary tendency, in context of majority permanent contracts for workers in the sector -Need for more collarotation between employer and trade union organizations activating in the sector The challenges

22 Conclusions The participatory management has direct influence on:
labour relations at company/sector level; development of social partners´ activity; productivity and effectiveness at workplace; workers satisfaction at workplace The success in implementation of participatory management models is strongly related to the role and level of involvement of social partners


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