Employee involvement participation

Employee Involvement & Participation

Its all about power & control!

How should the power & control be divided?

Perspectives Unitarist

Pluralist

Marxist

‘Frontier of Control’ (Goodrich)

What is the demand for control?- the demand not to be controlled

disagreeably?- the demand not to be controlled at all?- the demand to take a hand in controlling?

The Extent of Control Control that is allowed V’s that

which is taken Negative V’s Positive control Customery V’s Contagious control

Three Levels of Control

1. Wages & conditions2. Techiques related to everyday

work3. Wider trade policy & strategy

formulation

Salamon’s Forms (1998) Industrial Democracy: worker control

Employee Participation: influence decision making

Employee Involvement: engage support, understanding, commitment & contribution

Continuum of Employee Participation

No Receiving Joint Joint Employee

Invlt. Info. Consult. D-M Control

(Blyton & Turnbull 1997)

Ramsey’s 4 Types

1. Task Involvement2. Briefing Systems3. Consultative Arrangements4. Financial Participation

The ‘Push’ for Participation Ideological Institutional (EU) Higher expectations Attitudes towards authority Alienation & dissatisfaction at work Organisational change HRM

Issues Who initiates? Who determines the agenda? Extent (operational/strategic) Scope Form (direct/representative) Purpose

The Cynical View The rhetoric may be one of ‘worker

empowerment’, ‘employee participation’ and ‘involvement’ , but the prime objectives remain – more efficient production and more effective management control.

Managers appear to support most employee involvement practices so long as these do not radically effect their control function within the firm.

Some Mechanisms Suggestion schemes Team working Attitude surveys Collective bargaining Quality circles Worker Directors Works councils

Direct Participation Team Working Quality Circles Attitude Surveys Suggestion Scheme

Indirect (representative) Participation Collective Bargaining Works Councils Worker Directors

Relevent EU Directives Fifth Directive (1972) Vredling Directive (1980) Social Charter (1989) European Works Councils Directive

(1996) Directive on Information &

Consultation (2002)

Existing Irish Provisions Transnational Information &

Consultation Act (EWC) 1996 Worker Participation Acts 1977/88 Other pieces of employments law

eg. Safety, Health & Welfare Act, 1989, Protection of Employment Act, 1977 etc.

Worker Directors Ireland – confined to the state sector Management View

- articulate employee views- ensure employee commitment- reduce conflict

Union View- alternative power centre undermining ability to challenge- positive development

Evidence of Limited Impact (Salamon 1998)

Infrequency of board meetings Exclusion of worker directors from

‘side’ meetings Role of the board is to endorse

decisions Rely heavily on senior

management for information

Move to Works Councils 1996 EU Directive –

All companies with over 1000 employees, operating in two or more member states, must establish a European Works Council

Works Councils

A method of providing formal employee representation at workplace level to facilitate

consultation and discussion of enterprise related issues between

workers and management.Operates alongside collective

bargaining.

Works Councils - Features Joint Common interest Co-operative Representative Union & non-union Strategic & operational

Works Councils - Rights Right to be informed Right to be consulted Right to independent

investigation Right to co-determination

Cycles or Waves of Participation Cycles: history of participation

shows periods of development followed by periods of decay with little/no overall change (Ramsey 1983)

Waves: interest in participation ‘ebbs & flows’ at both the micro and macro levels (Marchington 1992)

Four Common Problems Lack of continuity Lack of middle management

support Adoption of inappropriate systems Employee scepticism

Trade Union Response Management emphasis on intrinsic

rewards Primary motive = productivity Attempt to undermine existing

arrangements2 Strategies:- Block- Negotiate

Towards Partnership P2000 & PPF Definition NCP/NCPP Evidence of practice?

Partnership (P2000)…an active relationship based on recognition of a common interest to secure competitiveness, viability and prosperity of the enterprise. It involves a continuing commitment to improvements in quality and efficiency; and the acceptance by employers of employees as stakeholders with rights and interests to be considered in the context of major decisions effecting their employment.

Exploring partnership (Irish local authority)

- what initiates partnership?- what does it mean?- what’s in it for the workers?

Exploring partnership…

The findings:- their understanding of partnership- the unions and industrial relations- the issues addressed- the successes and the obstacles- the future

EU Information and Consultation Directive 2002 “This is the best opportunity ever,

to reform the Irish industrial relations system.” Prof Keith Sisson

Right to be informed and consulted on matters currently affecting their jobs and those likely to impact on their future work life.

More About the Directive Deadlines 20/50 Threshold (coverage) Definitions Scope, timing, method Representatives Penalties

Definitions ‘Information’ is the transmission, by the

employer to the employees’ representatives, of data in order to enable them to acquaint themselves with the subject- matter and to examine it.

‘Consultation’ means the exchange of views and establishment of dialogue between the employees’ representatives and the employer.

Employee Voice: Some descriptive indicators

Employee Voice Mechanisms: % usedNUI,G2002

UCD1996/ 7

C/ UL1995

Team Briefings 88 n/a 77Team Working 64 71 n/aJCC/WC 39 13 25Attitude Surveys 36 n/a 40S/ Schemes 34 n/a 49EWC 24 n/a n/aQuality Circles 13 15 28

N = 195-224 450 146-199

Employee Voice: Some descriptive indicators

Range of activities considered by JCC/ WC:% and (rank order)

NUI,G: 2002

Health & Safety 78 (1)Training 58 (2)Quality 54 (3)Financial/Budgetary Info 45 (4)Flexibility 44 (5)Redundnacy/Manpower 38 (6)Salary/Pay 28 (7)Equal Opportunities 24 (8)

A Case of ‘Good’ PracticeIn this organisation commitment to informing and consulting employees comes from the top. They employ multiple mechanisms for both purposes. Material is presented in good time and is broad and deep in scope. Both direct and representative mechanisms are used. Decisions can and do change as a result.

The Context Large MNC, financial services Voice ‘champion’ at the top Biannual strategy roll-out Partnership forum Active EWC Focus groups (improvement) Team meetings: published action

plans Suggestions schemes (rewarded)

voice

A Case of ‘Poor’ PracticeThere is no ‘real’ commitment to informing and consulting employees. The organisation pays ‘lip service’ by having mechanisms in place that are not active. Employee representatives are marginalised. The preference is for direct mechanisms to be used for informing (at short notice). Decisions should not and do not change.

The Context

Large MNC, distribution 95% union density Weekly team meeting (scripted)? Annual review (scripted) ? Performance appraisal ? Employee survey Electronic notice-board ? Union-management meetings ?

voice

Issues for moving forward Opportunity V’s threat Representatives Coverage (50/20) Framework / Model - direction Trigger Facilitation and Training (NCPP, LRC) Redress

Conclusions There is a move towards more

EI/EP Reasons Underlying motives Voluntarism V’s regulation Is regulation enough?