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Employee Involvement (Empowerment) - Oec

The document discusses employee empowerment and involvement through three main applications: parallel structures, high involvement organizations, and total quality management. Parallel structures like quality circles and union-management projects give employees power and autonomy to solve problems. High involvement organizations promote participation through flat structures, meaningful work, information sharing, and reward systems tied to performance. Total quality management is a comprehensive approach where all employees continuously improve processes and quality, led by principles from Deming like eliminating fear and breaking down barriers. The goal of these applications is to empower employees by moving decision-making closer to their level and improving performance, commitment, and satisfaction.

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Tausif Ahmed
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141 views11 pages

Employee Involvement (Empowerment) - Oec

The document discusses employee empowerment and involvement through three main applications: parallel structures, high involvement organizations, and total quality management. Parallel structures like quality circles and union-management projects give employees power and autonomy to solve problems. High involvement organizations promote participation through flat structures, meaningful work, information sharing, and reward systems tied to performance. Total quality management is a comprehensive approach where all employees continuously improve processes and quality, led by principles from Deming like eliminating fear and breaking down barriers. The goal of these applications is to empower employees by moving decision-making closer to their level and improving performance, commitment, and satisfaction.

Uploaded by

Tausif Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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EMPLOYEE EMPOWERMENT

DEFINITION

Employee Involvement/ Employee Empowerment seeks to increase members


input into decisions that affect organisations performance and employee well
being.

It can be described in terms of four key elements- Power, Information,


Knowledge and Skill and Rewards, that promote worker involvement.

ELEMENTS OF EI

Power: Enough authority to make work related decisions

Information: Timely access to relevant information

Knowledge and skill: Development of requisite skills and knowledge to make


good decisions.

Rewards: Internal Rewards (Feeling of self-worth and accomplishment), External


Rewards (pay and promotion) linked to performance outcomes that result from
participation in decision making.

THE OBJECTIVE OF EI

Moving decision making downward in the organization, closer to where the actual
work takes place.
EFFECTS OF EI

Quicker Decision

Most responsible decision

Continuous Performance Improvement

Greater Employee flexibility.commitment and satisfaction

EMPLOYEE INVOLVEMENT APPLICATIONS

Parallel Structures

High Involvement Organisations

Total Quality Management

PARALLEL STRUCTURE

Parallel Structures involve members in resolving ill-defined, complex problems


and build adaptability into bureaucratic organization.

An alternative setting to address problems and to propose innovative solutions


free from the formal organizational structure and culture.

Parallel structures facilitate problem solving and change by providing time and
resources for members to think, talk, and act in completely new ways.

Norms and procedures for working in parallel structures is completely different


from those of the formal organization.

Applications of Parallel Structures:

Cooperative Union-Management Projects

Quality Circles

COOPERATIVE UNION- MANAGEMENT PROJECT

Oldest EI application of parallel structure.

Associated with the original QWL movement and its focus was on workplace
change.

QUALTY CIRCLES

Quality Circles consist of small groups of employees who meet voluntarily to


identify and solve productivity problems.

Originally developed in Japan in mid 1950s.

Consists of several circles, each having three to fifteen members.

Membership is voluntary and members of a circle share a common job or work


area.

Circles meet once each week for about one hour on company time.

Each circle has a leader, who is typically the supervisor of the work area
represented by the circle membership.

The leader trains circle members and guides the weekly meetings, setting the
agenda and facilitating the problem solving process.

Facilitators coordinate activities of several circles.

Attend the meetings, especially at the development stages.

RESULTS OF PARALLEL STRUCTURE APPROACHES

Reduction in costs

Improvements in the quality and quantity of production

Increased member skill development, motivation, organizational commitment and


satisfaction.
HIGH INVOLVEMENT ORGANIATIONS

In HIOs almost all organizational features are designed jointly by management


and workers to promote high levels of involvement and performance, including
structure, work design, information and control systems, physical layout,
personnel policies and reward systems.
CHARACTERISTICS OF HIOs

Flat lean organizational structure

Job design: High level of discretion, task variety and meaningful feedback

Open Information Systems

Career Systems that provide different tracks for advancement and counselling for
help people to choose appropriate paths

Selection: Realistic job preview, team members involvement in the selection


process

Training employees for necessary knowledge and skill

Reward Systems: Rewards are based on acquiring new skills, as well as sharing
gain from improved performance.

Personnel Policies: Encourages stability of employment

Physical Layouts support team structure and reduce status differences

RESULTS OF HIGH-INVOVEMENT ORGANIATIONS

A survey of 98 HIOs showed about 75 percent of them perceived their


performance, relative to the competitors, as better than average on quality of work
life, customer service, productivity, quality and grievance rates.

Many top performing firms of US rely heavily on EI practices.

TOTAL QUALITY MANAGEMENT

TQM is the most comprehensive approach to employee involvement.

It is also know as Continuous Process Improvement or Continuous Quality

Grew out of a manufacturing emphasis on quality control and represents long


term effort to orient all of an organizations activities around the concept of
quality.

W. Edward Deming and Joseph M. Juran are known as the fathers of modern
quality movement.

Initially was introduced in US during World War II.

Later used in Japanese Industries.

As a result, Japan produced world-class-quality products.

DEMINGS QUALITY GUIDELINESTHE FOURTEEN POINTS

Create a constancy of purpose.

Adopt a new philosophy

End the practice of purchasing at lower prices

Institute leadership

Eliminate empty slogans

Eliminate numerical quotas

Institute on-the-job training

DEMINGS QUALITY GUIDELINES- THE FOURTEEN POINTS

Drive out fear

Break down barriers between departments

Take action to accomplish the transformation

Improve constantly and forever the process of production and service

Cease dependence on mass production

Remove barriers to pride in workmanship

Retrain vigorously
THE SEVEN DEADLY SINS

Lack of constancy of purpose

Emphasizing short-term profits and immediate dividends

Evaluation of performance, merit rating and annual review

Mobility of top management

Running a company only on visible figures

Excessive medical costs

Excessive cost on warranty

Jurans publication of Quality Control Handbook in 1951 identified two sources


of quality problems : Avoidable and Unavoidable costs.

Avoidable Costs includes hours spent reworking defective products, processing


complaints and scrapping otherwise useful material.

Unavoidable costs include work associated with inspection and other preventive
measures.

Organizations should focus on avoidable costs that could be found in any process
or activity, not just in manufacturing.

TQM increases workers knowledge and skills through extensive training,


provides relevant information to employees, pushes decision making power
downward in the organization, and ties rewards to performance.

IMPLEMENTATION OF TQM

Gain long-term senior management commitment

Train members in quality methods

Start quality improvement projects

Measure progress

Rewarding accomplishments
RESULTS OF TQM

Motorolas manufacturing organization reduced the number of parts in its cellular


phone by 70 percent and cut the time required to build a cellular phone from forty
hours to four.

In a Conference Board Study of 149 large organizations more than 30 percent


reported improved financial performance.

CRITICAL DIMENSIONS AFFECTING TQM IMPLEMENTATION

Mohanty and Lakhe (1998) identified that

Organizational Size

Top management Support

Team Building Approach

Communication

Flexibility

Organizational Goals

Structures of planning framework

Infrastructure

Management risk taking ability

CRITICAL DIMENSIONS AFFECTING TQM IMPLEMENTATION

Competitive Strategy

Technology Policy

Customer Interaction

Employee Relation

Product Design

Vendor relation

Compatibility and Coordination

Financial Position

Recognition and reward system

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