Employee involvement

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This volume contributes to a growing consensus about effective workplace practices.

The collection combines detailed studies of single industries (automobile assembly, apparel, and machine tools) with cross-industry studies of financial performance.

Compared to most past investigations, the research here ha s better measures of both workplace practices and organizational performance.

The contributors find that systems of innovative human resource management practices can have large effects on business performance.

Success does not come from any single innovation, but from a coherent system encompassing pay, training, and employee involvement.

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Human Resource Managementin a Business Context by Alan Price Thomson Learning - ISBN 978-184480-548-8 Third Edition 2007 Price and delivery Amazon.co.uk - UK pounds Amazon.com - US dollars Amazon.ca - Can.

dollars Amazon.de - Euros Amazon.fr - Euros Contents Introduction to HRM Managing People The Concept of HRM HRM and Business Effectiveness HRM and the Business Environment Human Resources and the Global Economy HRM and the State The Employment Market Organizational HRM HRM in Large Organizations HRM in Small and Medium-sized Enterprises Organizational Culture HRM and Commitment Strategic HRM People Strategies Change Strategies Resourcing Strategies The Employee Resourcing Process Recruitment Employee Selection Managing Diversity Equality of Opportunity Race, disability and age Performance and Compensation Performance Management Reward Management Developing People Human Resource Development Learning in Organizations Employee Relations Unions and Collective Bargaining Conflict, bargaining, involvement and well-being Overview of HRM

Human Resources and the Global Economy

HRM in Small and Medium-sized Enterprises

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Employee Involvement Adapted from Human Resource Management in a Business Context, 3rd edition (2007) Ichniowski et al (2000) review a number of theories as to why high skill, high involvement workplaces are believed to be more effective than traditional 'top-down' management regimes. They divide these theories into two basic groups:- 1. Those that focus on the effort and motivation of workers and work groups and suggest that people work harder. 2. Those that focus on changes in the structure of organizations that produce improvements in efficiency. In the first group, the emphasis may be: Working harder. People may work harder if they find elements of a job to be interesting or enjoyable, and this may come from rewards or feedback. They are also less likely to resent aspects of the job if have contributed to its design. Working smarter. Innovative work practices can lead to improved efficiency. Workers can suggest improved work practices because they have a more intimate knowledge of the job than managers or external consultants. Moreover, open discussion allows employees to modify their own work processes to fit more effectively with others as they become aware of the 'bigger picture.' Ichniowski et al point to the need to change work culture from 'rate-busting' - discouraging high levels of performance - to one that values greater efficiency. This process can be encouraged by specifically rewarding high performance through collective bonuses. Theories in the second group may emphasize innovative work practices which can also lead to improvements in organizational structure that are independent of motivational effects. Ichniowski et al give the following as examples: * Cross-training and flexible job assignment may reduce the costs of absenteeism. * Delegating decision-making to self-directed teams can reduce the number of supervisors or middle managers and improve communication. * Training in problem-solving, statistical process control, and computer skils may enhance the benefits of information technology. * Involving workers and unions in decision-making can reduce grievances and other sources of conflict. It is clear that such changes associated with employee involvement are complex and make it 'difficult to isolate any single causal mechanism that produces their effects on economic performance.' Nevertheless Ichniowski et al conclude that the companies which adopt such practices 'should enjoy higher productivity and quality (...), leading to lower costs and higher product demand, all else equal.' But this comes at a cost because employee involvement programmes can be expensive due to extra meetings and related activities. Employee Involvement, Employee-Centred Management and Empowerment References: Icniowski, C. Kochan, T.A., Levine, D.I., Olson, C., and Strauss, G. (2000) 'What Works at Work: Overview and Assessment', in Icniowski, C. Kochan, T.A., Levine, D.I., Olson, C., and Strauss, G. (eds.) The American Workplace: Skills, Compensation, and Employee Involvement, Cambridge University Press. This article is based on Human Resource Management in a Business Context by Alan Price (3rd edition, 2007) Introduction to HRM .

Employee Involvement

Adapted from Human Resource Management in a Business Context, 3rd edition (2007)

Ichniowski et al (2000) review a number of theories as to why high skill, high involvement workplaces are believed to be more effective than traditional 'top-down' management regimes. They divide these theories into two basic groups:-

1. Those that focus on the effort and motivation of workers and work groups and suggest that people work harder.

2. Those that focus on changes in the structure of organizations that produce improvements in efficiency.

In the first group, the emphasis may be:

Working harder. People may work harder if they find elements of a job to be interesting or enjoyable, and this may come from rewards or feedback. They are also less likely to resent aspects of the job if have contributed to its design.

Working smarter. Innovative work practices can lead to improved efficiency. Workers can suggest improved work practices because they have a more intimate knowledge of the job than managers or external consultants. Moreover, open discussion allows employees to modify their own work processes to fit more effectively with others as they become aware of the 'bigger picture.' Ichniowski et al point to the need to change work culture from 'rate-busting' - discouraging high levels of performance - to one that values greater efficiency. This process can be encouraged by specifically rewarding high performance through collective bonuses.

Theories in the second group may emphasize innovative work practices which can also lead to improvements in organizational structure that are independent of motivational effects. Ichniowski et al give the following as examples:

* Cross-training and flexible job assignment may reduce the costs of absenteeism.

* Delegating decision-making to self-directed teams can reduce the number of supervisors or middle managers and improve communication.

* Training in problem-solving, statistical process control, and computer skils may enhance the benefits of information technology.

* Involving workers and unions in decision-making can reduce grievances and other sources of conflict.

It is clear that such changes associated with employee involvement are complex and make it 'difficult to isolate any single causal mechanism that produces their effects on economic performance.' Nevertheless Ichniowski et al conclude that the companies which adopt such practices 'should enjoy higher productivity and quality (...), leading to lower costs and higher product demand, all else equal.' But this comes at a cost because employee involvement programmes can be expensive due to extra meetings and related activities.

Employee Involvement, Employee-Centred Management and Empowerment

References:

Icniowski, C. Kochan, T.A., Levine, D.I., Olson, C., and Strauss, G. (2000) 'What Works at Work: Overview and Assessment', in Icniowski, C. Kochan, T.A., Levine, D.I., Olson, C., and Strauss, G. (eds.) The American Workplace: Skills, Compensation, and Employee Involvement, Cambridge University Press.

This article is based on Human Resource Management in a Business Context by Alan Price (3rd edition, 2007)

Introduction to HRM

by Alan Price
Thomson Learning - ISBN 978-184480-548-8
Third Edition 2007

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