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Participative

Management

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YEAR 2011-12

T.Y.B.M.S DIV-A

SEM-V

Name of the Student Roll No.

INDEX

1. Introduction2. Objectives Of Participative Management3. Requirements Of Participative Management4. Benefits Of Participative Management

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5. Effective Participative Management Techniques6. Case StudyRaptakos Brett co. Ltd, Thane7. Observation and Recommendations8. Conclusion9. Bibliography

PARTICIPATIVE MANAGEMENT

Participative (or participatory) management, otherwise known as

employee involvement or participative decision making, encourages the

involvement of stakeholders at all levels of an organization in the

analysis of problems, development of strategies, and implementation ofsolutions. Employees are invited to share in the decision-making process

of the firm by participating in activities such as setting goals,

determining work schedules, and making suggestions. Other forms of

participative management include increasing the responsibility of

employees (job enrichment); forming self-managed teams, quality

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circles, or quality-of-work-life committees; and soliciting survey

feedback. Participative management, however, involves more than

allowing employees to take part in making decisions. It also involves

management treating the ideas and suggestions of employees with

consideration and respect. The most extensive form of participativemanagement is direct employee ownership of a company.

Four processes influence participation. These processes create employee

involvement as they are pushed down to the lowest levels in an

organization. The farther down these processes move, the higher the

level of involvement by employees. The four processes include:

1. Information sharing, which is concerned with keeping employeesinformed about the economic status of the company.2.Training, which involves raising the skill levels of employees andoffering development opportunities that allow them to apply new

skills to make effective decisions regarding the organization as a

whole.

3.Employee decision making, which can take many forms, fromdetermining work schedules to deciding on budgets or processes.

Rewards, which should be tied to suggestions and ideas as well as

performance.

Objectives of Participative Management

To Make Best Use of Human Capital: Participativemanagement does not restrict organizations to exploit only

physical capital of employees. Rather it makes the best use of

human intellectual and emotional capital. It gives employees an

opportunity to contribute their ideas and suggestions to improve

business processes and create a better working environment.

To Meet the Psychological Needs of Employees: Whenemployees have a say in decision making process, it gives them

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a psychological satisfaction. It is a simple force that drives them

to improve their performance, create a proper channel of

communication and find practical solutions to design better

organizational processes.

To Retain the Best Talent: Participatory management is one ofthe most effective strategies to retain the best talent in the

industry. It gives employees a sense of pride to have a say in

organizational decision making process. Once they are valued

by their seniors, they stick to the organization and become

managements partners in meeting specific goals and achieving

success.

To Increase Industrial Productivity:In todays competitiveworld, motivation, job security and high pay packages are notenough to increase industrial productivity. Leadership,

flexibility, delegation of authority, industrial democracy and

employee say in decision making are important to increase

annual turnover of any organization.

To Establish Harmonious IndustrialRelationship: Participatory from of management is an

unbeatable tact to establish and maintain cordial relationships

with employees and workers union. The success of anorganization depends on its human resources. Employee

empowerment acts as a strong force to bind the employees and

motivate to give them their best to the organization.

To Maintain a Proper Flow of Communication: Two-waycommunication plays an important role in the success of any

organization. Employee participation in decision making

ensures proper flow of communication in the organization.

Everyone contributes their best and tries to strengthen theorganization by contributing their best to improve business

processes.

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Requirements Of Participative Management

A common misconception by managers is that participative management

involves simply asking employees to participate or make suggestions.

Effective programs involve more than just a suggestion box. In order for

participative management to work, several issues must be resolved and

several requirements must be met. First, managers must be willing to

relinquish some control to their workers; managers must feel secure intheir position in order for participation to be successful. Often managers

do not realize that employees' respect for them will increase instead of

decrease when they implement a participative management style.

The success of participative management depends on careful planning

and a slow, phased approach. Changing employees' ideas about

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management takes time, as does any successful attempt at a total cultural

change from a democratic or autocratic style of management to a

participative style. Long-term employees may resist changes, not

believing they will last. In order for participation to be effective,

managers must be genuine and honest in implementing the program.Many employees will need to consistently see proof that their ideas will

be accepted or at least seriously considered. The employees must be able

to trust their managers and feel they are respected.

Successful participation requires managers to approach employee

involvement with an open mind. They must be open to new ideas and

alternatives in order for participative management to work. It is

important to remember that although the manager may not agree with

every idea or suggestion an employee makes, how those ideas arereceived is critical to the success of participative management.

Employees must also be willing to participate and share their ideas.

Participative management does not work with employees who are

passive or simply do not care. Many times employees do not have the

skills or information necessary to make good suggestions or decisions.

In this case it is important to provide them with information or training

so they can make informed choices. Encouragement should be offered in

order to accustom employees to the participative approach. One way to

help employees engage in the decision-making process is by knowing

their individual strengths and capitalizing on them. By guiding

employees toward areas in which they are knowledgeable, a manager

can help to ensure their success.

Before expecting employees to make valuable contributions, managers

should provide them with the criteria that their input must meet. This

will aid in discarding ideas or suggestions that cannot be implemented,

are not feasible, or are too expensive. Managers should also give

employees time to think about ideas or alternative decisions. Employees

often do not do their most creative thinking on the spot.

Another important element for implementing a successful participative

management style is the visible integration of employees' suggestions

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into the final decision or implementation. Employees need to know that

they have made a contribution. Offering employees a choice in the final

decision is important because it increases their commitment, motivation,

and job satisfaction. Sometimes even just presenting several alternatives

and allowing employees to choose from them is as effective as if theythought of the alternatives themselves. If the employees' first choice is

not feasible, management might ask for an alternative rather than

rejecting the employee input. When an idea or decision is not acceptable,

managers should provide an explanation. If management repeatedly

strikes down employee ideas without implementing them, employees

will begin to distrust management, thus halting participation. The key is

to build employee confidence so their ideas and decisions become more

creative and sound.

Benefits Of Participative Management

A participative management style offers various benefits at all levels of

the organization. By creating a sense of ownership in the company,

participative management instills a sense of pride and motivates

employees to increase productivity in order to achieve their goals.

Employees who participate in the decisions of the company feel like

they are a part of a team with a common goal, and find their sense of

self-esteem and creative fulfillment heightened.

Managers who use a participative style find that employees are more

receptive to change than in situations in which they have no voice.

Changes are implemented more effectively when employees have input

and make contributions to decisions. Participation keeps employees

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informed of upcoming events so they will be aware of potential changes.

The organization can then place itself in a proactive mode instead of a

reactive one, as managers are able to quickly identify areas of concern

and turn to employees for solutions.

Participation helps employees gain a wider view of the organization.

Through training, development opportunities, and information sharing,

employees can acquire the conceptual skills needed to become effective

managers or top executives. It also increases the commitment of

employees to the organization and the decisions they make.

Creativity and innovation are two important benefits of participative

management. By allowing a diverse group of employees to have input

into decisions, the organization benefits from the synergy that comesfrom a wider choice of options. When all employees, instead of just

managers or executives, are given the opportunity to participate, the

chances are increased that a valid and unique idea will be suggested.

Effective Participative Management Techniques

Participative management aims at getting employees involved in

decision making and policy direction in a business or government

organization. Employees have great ideas that can help an organization

to become more effective at achieving its goals. It is up to skilled

managers to source these ideas through participative managementtechniques.

1.Building Cooperationo If you have ever met a manager who likes to build cooperation of

employees into the department's work culture, than you probably saw a

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person using a participative management technique. One idea that works

is taking a large department project and breaking it down into chunks.

Small work teams can pursue a chunk of the project in their own groups.

In a group, individuals cooperate, setting goals and producing results. As

long as they meet established deadlines for all groups, they possess ahigh degree of flexibility in getting the job done.

Committees

o A senior management team can help to solve problems facing the entireorganization by inviting employees of all levels of seniority to

participate in special committees. A committee must tackle a specific

problem, or even study problems that might exist, and report back to the

senior management team. If a senior management team wants to be trulyresponsive to worker input, it will take the advice of a committee

seriously and incorporate its suggestions as part of the final solution.

Consultative Management Model

o The consultative management model is a simplified version ofparticipative management. Whenever a manager needs worker input, she

can use the staff meeting to discuss important issues with line workers.

If she gets ideas that would truly impact the organization, positively or

negatively, she will forward those ideas by email or another

communication channel to senior managers. Some organizations use the

weekly staff meeting as a standard, and managers report back to a

manager's meeting to discuss what employees are saying about the

present issues facing the organization.

Cross Functioning

o A suggestion box is a limited way that many employers try to getemployees involved in setting policy and other management decisions.Another way is to use the cross-functioning method, or work teams

comprised of workers from different departments. They solve problems

facing the organization, and everyone on a team has an equal voice in

the group's direction. This model represents an interdisciplinary

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approach based on the notion that workers from different technical

backgrounds can brainstorm together and solve problems.

Case study:

Participative Management in Raptakos Brett & Co. Ltd

Thane

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Raptakos, Brett & Co.Ltd., was founded in India in 1930 by

Mr.A.Raptakos and Mr.W.H.Brett. Over the past seven decades, the

company has shown consistent growth and acquired a well earnedreputation for very ably serving the medical profession and patients

alike with a portfolio of innovative products.

The company has a wide range of nutraceutical products ranging from

specialised infant foods for low birth weight and lactose intolerance

infants foods for growing children, diabetics, cardiac patients, pregnant

and lactating women, and the old and critically ill.

For the benefit of the medical profession, Raptakos,Brett & Co. Ltdpublishes and distributes free of cost an in-house publication called the

Quarterly Medical Review(QMR) containing articles of medical

interest.

The company has an pextensive pdistribution network comprising 24

branches spread all over India. Over 1000 field personnel serves the

medical professionals through out the country. The company has also

established its presence in international markets in Asia, Africa, South

America and Europe through its offices in Vietnam, Philippines, Kenya,

Middle East, South Africa and UK.

Organizational Structure Of Personnel Department

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Workers & Management

Reptakos Ltd. has 4 production plants in India viz. Thane, Roha,

Chennai and Alwar, out of which thane plant is the largest plant. 60% of

the business is majorly carried through thane plant. There are nearly 450

Vice-

president

(DGM)

General Manager

Personnel

manager

Senior

Executive

Assistant 1 Assistant 2

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workers working in the organization out of which 350 are permenant and

the rest are on temporary basis.

The workers and management are well connected with each other

because they can directly approach to management. There is only one

trade union operating in the organization, due to which there are lessnumber of conflicts between the workers and management.

Recent Worker issue in Reptakos brett co. Ltd

Recently in April 2011 Reptakos faced a strike from their

temporary workers. The strike was held on the basis that the temporary

workers in the company were paid less according to their expectations

and also their major demand was that they wanted to become permanent

workers as soon as possible.

The company on the other hand was not ready to accept these demands.

They were ready to increase their pay to some extend but not at all ready

to make the temporary workers permanent. The company told the

workers to wait for some time for like a year or two because by that time

the temporary workers were as it is going to become permanent. The

workers did not agree to compromise on this issue and went on a strike.The company after getting ready to compromise finally took major step

and fired all the temporary workers.

Ways of Participation (Forms):One view is that workers or the trade unions should, as equal partners,

sit with the management and make joint managerial decisions.

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The other view is that workers should only be given an opportunity,

through their representatives, to influence managerial decisions at

various levels.

In practice, the participation of workers can take place by one or all the

methods listed below:

1. Board Level Participation

2. Work or Safety Committee

3. Suggestion Schemes

4. Quality Circles

1.Participation at the Board level:This would be the highest form of industrial democracy.

The workers representative on the Board can play a useful role in

safeguarding the interests of workers.

The representative workers of the organization has given an authority to

prevail upon the top management not to take measures that would be

unfavourable to them.

2.Work or safety committee:There is no work committee operating in the organization instead of that

there is a safety committee which solves the problems or disputes

regarding workers issue. The committee tries to solve the problem at

each level and if the problem is not solved , the issue moves on to the

next level.

3.Suggestions Scheme:Employees views are invited and reward is given for the best

suggestion. With this scheme, the employees interest in the problems of

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the organization is aroused and maintained. Suggestions can come from

various levels. The ideas could range from changes in inspection

procedures to design changes, process simplification, paper-work

reduction and the like. Out of various suggestions, those accepted could

provide marginal to substantial benefits to the company. The rewardsgiven to the employees are in line with the benefits derived from the

suggestions.

4.Quality Circles:A QC consists of seven to ten people from the same work area who meet

regularly to define, analyze, and solve quality and related problems in

their area.

OBSERVATION

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From the visit we observed that the Suggestion scheme of

company is not effectively implemented. The workers are not

responding to it and at the same time the management is not paying

much attention to the complaints for the workers.

RECOMMENDATION

Suggestions can come from various levels and is very useful for

the further progress in the organization. So all we can recommend is thatthey should make some positive changes in it and use it on regular basis.

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Conclusion

You give worker an inch and he gives you back a mile. If

applied properly participative management acts as a boon andincreases efficiency, effectiveness and performance of employee

and work performed by them.

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Bibliography

http://www.raptakos.com

http://www.raptakos.com/http://www.raptakos.com/http://www.raptakos.com/