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ECE _ DSST Organizational Behavior

Participative management is a process where

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Unformatted text preview: Participative management is a process where subordinates share a significant degree of decision-making power with their immediate superiors. At times, this type of management has been promoted as the panacea for poor morale and low productivity. However, participative management is not appropriate for every organization or every work unit. For it to work, there must be adequate time to participate, the issues in which employees get involved must be relevant to their interests, employees must have the ability to participate, and the organization’s culture must support employee involvement. It has been found that people are less likely to undermine a decision if they shared in the making of that decision Almost every country in Western Europe has some type of legislation requiring companies to practice representative participation, which is where workers participate in organizational decision making through a small group of representative employees. Representative participation has been called “the most widely legislated form of employee involvement around the world.” The goal of representative participation is to redistribute power within an organization, putting labor on a more equal footing with the interests of management and stockholders. While this form of employee involvement might increase the motivation and satisfaction of those individuals who are doing the representing, little evidence indicates that this trickles down to the operating employees who they represent. Works Councils are groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. Works councils link employees with management. For example, in the Netherlands, if a Dutch company is taken over by another firm, the former’s works council must be informed at an early stage, and if the council objects, it has 30 days to seek a court injunction to stop the takeover. Board representatives are employees who sit on a company’s board of directors and represent the interests of the firm’s employees. This is another form of representative participation. In some countries, large companies may be legally required to make sure employee representatives have the same number of board seats as stockholder representatives. A quality circle is a work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions. This concept is frequently mentioned as one of the techniques Japanese firms use that have allowed them to make high-quality products at low costs. While this group takes over the responsibility for solving quality problems, and generating and evaluating their own feedback, management typically retains control over the final decision regarding implementation of recommended solutions....
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