Employee Participation in Industrial Relation

This report explores the concept of employee participation in industrial relation. It discusses the importance of employee involvement in decision-making and the ways to improve participation. The report also highlights the advantages and disadvantages of employee participation and provides recommendations for enhancing employee involvement.

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A report on
Employee Participation

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Course Code: MGT- 308
Course Title: Industrial Relation
Submitted to,
Dr. Sabnam Jahan
Associate Professor
Department of management
University of Dhaka
Topic: Employee participation
Submitted by:
Group: 3
Name Id
Md. Saharuzzaman Mubin 23
Shairien Akter shila 24
Badhan Kumar Ghosh 25
Shaan Ibrahim Himi 26
Sanjida Islam Sompa 27
Al Amin Islam 28
Mariah Binte Muzib Al Gazi 29
Juthi Khatun 30
Date of Submission: 11th Augusts, 2022

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Letter of Transmittal
Date: 11th August, 2022
DR. Sabnam Jahan
Associate Professor
Department of management
University of Dhaka, Bangladesh
Subject: Request for Acceptance of Report
Dear Sir,
It gives us great pleasure to present the report titled “Employee participation.” in accordance
with your instructions. We have done our best within the constraints of time to make this report
as comprehensive and informative as possible. We will gladly answer any questions you may
have. Thanking you again for your sound co-operation.
Sincerely Yours,
………………………………..
Md Saharuz Zaman Mubin
On behalf of group- 3
ID: 023
Batch: 25th Section: A
Department of Management
University of Dhaka, Bangladesh

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Acknowledgement
Writing this report has been one of the most vital academic challenges we have ever had to
face. All praises to Almighty Allah. Subsequently, without the support, patience, and guidance
of the following people, this study would have not been completed. It is to the person that we
owe our deepest gratitude DR. SABNAM JAHAN, Associate Professor, Department of
Management, University of Dhaka, Bangladesh. We are highly indebted to her for her
inspiration, kind assistance, valuable suggestion, and wise guidance during making this report.

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Executive Summery
Industrial Relation is the academic study of how people interact in industries within groups and
its principles are applied primarily in attempts to make businesses operate more effectively. In
this module we discuss and the term relation among employers and employees and its effects.
Doing this task the authors of this task use the secondary source of data. We have used Harvard
system to refer the bibliography part of this task.

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Table of Contents
Letter of Transmittal .................................................................................................................. 3
Acknowledgement ..................................................................................................................... 4
Executive Summery ................................................................................................................... 5
Chapter 1: Introduction .............................................................................................................. 7
1.1 Background of the study .................................................................................................. 7
1.2 Rational of the study ........................................................................................................ 7
1.3 Objective of the study ...................................................................................................... 7
1.4 Scope of this Study ........................................................................................................... 8
Chapter 2: Literature review ...................................................................................................... 9
Chapter 3: Theoretical Framework .......................................................................................... 11
3.1 Ways through participation: ........................................................................................... 11
3.2 Ways to improve participation ....................................................................................... 12
3.3 Importance or Advantages of Participation:................................................................... 15
3.4 Disadvantages of Employee Participation: .................................................................... 17
Chapter 4: Findings and Analyses ........................................................................................... 20
Chapter 5: Conclusion & Recommendation ............................................................................ 21
5.1: Conclusion: ................................................................................................................... 21
5.2: Recommendation: ......................................................................................................... 22
References ................................................................................................................................ 23

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Chapter 1: Introduction
1.1 Background of the study
Employee participation is a part of any work environment in any establishment. When you
have a group of people working under stress with different personalities, there’s bound to be a
few problems. An employee participation programme involves involving them in the decision-
making process about their workplace and the conditions under which they operate. Employees
and their bosses share the power to make decisions about their work. In addition, the level of
employee commitment to the organisation is expressed through Employee involvement.
Providing employees with a voice in the decision-making process is known as employee
involvement. Expertise of scientific or technical awareness, knowledge of the context in which
decisions are executed, history and personalities all contribute to a more informed decision-
making process when the public is involved. Better information can mean the difference
between making the right choice and making the wrong one. .We all know that when people
gather for a discussion, it is not necessary that what one thinks is right the other thinks the same
way, this difference in thinking or mentality leads to conflict.
1.2 Rational of the study
Industrial Relation is the academic study of how people interact in workplace. The principles
of the study of IR are applied primarily in attempts to make businesses operate more effectively.
The study of Industrial Relation (IR) is very interesting and challenging too. It is related to
individuals, group of people working together in teams. The study becomes more challenging
when situational factors interact. The study of industrial relation relates to the expected
behaviour of an individual in the organization. No two individuals are likely to behave in the
same manner in a particular work situation. It is the predictability of a manager about the
expected behaviour of an individual. There are no absolutes in human behaviour. It is the
human factor that is contributory to the productivity hence the study of human behaviour is
important. Great importance therefore must be attached to the study.
1.3 Objective of the study
The primary objective of this study is to develop effective group behaviour among the
employees. Increasing the amount of worker motivation through participation in management
by the workers themselves is the goal. To encourage self-expression among workers and to
make them feel as though they play an important role. To create new avenues of comprehension
that would ultimately result in enhanced productivity and harmony in one's endeavours.

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1.4 Scope of this Study
Every business undergraduate student should realize that industrial relation is a crucial area
that relies on gathering knowledge under controlled settings. Organizations exist to meet
people's needs. In today's competitive environment, organizations must expand. This is
achievable when the quantity of goods produced is guaranteed to be error-free. Employee
absence and turnover reduce productivity.
Whether or whether employees are allowed to have input into the company's social, economic,
and personnel decisions is entirely contingent on the requirements of the business. However, it
is unclear how much involvement employees should have in the process of decision-making.
It is vital that all employees have a good involvement towards their jobs. They must work in a
friendly environment and achieve set goals. Managers must also foster a positive work culture.
Use of authority, delegation of power, division of labour, and effective communication.

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Chapter 2: Literature review
What is employee involvement and participation?
Employee participation refers to participation: the employees take part in business activities.
Employee involvement refers only to the degree of input employees have on the business
activities they perform.Although the two concepts are similar, they are two different elements.
Defining Participation Management
Participative management is a tool that is used to motivate the employees. When subordinates
are involved in decision-making at all levels it is known as participation. According to New-
storm and Davis, ‘participation is the mental and emotional involvement of people in group
situations that encourages them to contribute to group goals and share responsibility for them’.
Features of Participative management
● Participation involves mental as well as emotional involvement of the employees.
● It instils teamwork among the employees.
● It is a motivational technique.
● An employee can identify own strengths as well as weaknesses.
● It is an all pervasive function
● Employees become better through contribution in the decision making process.
Types of Participative Management
6 Forms of Worker Participation in management.
● Company Management Co-Ownership: Workers are made shareholders by allotting
those shares in the company. They are employees as well as owners of the business
concern. Thus, their participation in the management is automatically guaranteed.
● Seat On Board of Directors: In this case the workers’ representative is given a seat
on the boards of directors.
● Works Committee: These committees are consultative bodies. Their functions
include discussion of conditions of work like lighting, ventilation, temperature and
sanitation etc., and amenities like water supply for drinking purposes, canteen,
medical services, safe working conditions, administration of welfare funds etc.
● Joint Management Councils: Joint committees for settlement of grievances or
specific problems may be set up for promoting workers’ participation in management.
Workers representatives sit with the management across the table to discuss matters
which fall within its purview. The main object of such councils is to give an

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opportunity to workers to understand the working of the industry and satisfy their
urge for self-expression.
● Profit Sharing: Workers feel involved in the management especially when they are
given a share in profits of the business.
● Suggestion Scheme: Suggestion scheme may also be introduced for creating interest
in the work by announcing a suitable reward for original and useful suggestions.
Employees can put their suggestions in the suggestion boxes which are installed in the
various departments.
How Participative Management can be done?
 Project teams or quality circles in which employees work on projects or tasks with
considerable responsibility being delegated to the team.
 Suggestion schemes - where employees are given channels whereby they can suggest
new ideas to managers within the organisation. Often they will receive rewards for
making appropriate suggestions.
 Consultation exercises and meetings whereby employees are encouraged to share
ideas.
 Delegation of responsibility within the organisation. In modern organisations ground
level employees have to be given considerable responsibility because they are dealing
with customers on a day-to-day basis often in novel situations. Such employees need
to be trusted to make decisions for themselves.

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Chapter 3: Theoretical Framework
3.1 Ways through participation:
● Participation at the Board Level: Representation of employees at the board level is
known as industrial democracy. This can play an important role in protecting the
interests of employees. The representative can put all the problems and issues of the
employees in front of management and guide the board members to invest in employee
benefit schemes.
● Participation through Ownership: The other way of ensuring workers’ participation in
organisational decision making is making them shareholders of the company. Inducing
them to buy equity shares, advancing loans, giving financial assistance to enable them
to buy equity shares are some of the ways to keep them involved in decision-making.
● Participation through Collective Bargaining: This refers to the participation of workers
through collective agreements and by deciding and following certain rules and
regulations. This is considered as an ideal way to ensure employee participation in
managerial processes. It should be well controlled otherwise each party tries to take
advantage of the other.
● Participation through Suggestion Schemes: Encouraging your employees to come up
with unique ideas can work wonders especially on matters such as cost cutting, waste
management, safety measures, reward system, etc. Developing a full-fledged procedure
can add value to the organisational functions and create a healthy environment and work
culture. For instance, Satyam is known to have introduced an amazing country-wide
suggestion scheme, the Idea Junction. It receives over 5,000 ideas per year from its
employees and the company accepts almost one-fifth of them.
● Participation through Complete Control: This is called the system of self-management
where workers union acts as management. Through elected boards, they acquire full
control of the management. In this style, workers directly deal with all aspects of
management or industrial issues through their representatives.
 Participation through Job Enrichment: Expanding the job content and adding additional
motivators and rewards to the existing job profile is a fine way to keep workers involved
in managerial decision-making. Job enrichment offers freedom to employees to exploit
their wisdom and use their judgement while handling day-to-day business problems.

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 Participation through Quality Circles: A quality circle is a group of five to ten people
who are experts in a particular work area. They meet regularly to identify, analyse and
solve the problems arising in their area of operation. Anyone, from the organisation,
who is an expert of that particular field, can become its member. It is an ideal way to
identify the problem areas and work upon them to improve working conditions of the
organisation.
3.2 Ways to improve participation
 Communicate clear goals and expectations to your employees: The majority of
employees want to be a part of a compelling future, want to know what is most
important at work and what excellence looks like. For targets to be meaningful and
effective in motivating employees, they must be tied to larger organisational ambitions.
 2. Share information and numbers: Let them in on what is going on within the
company as well as how their jobs contribute to the big picture. When you keep your
employees informed they tend to feel a greater sense of worth. Keep communication
hopeful and truthful – do not be afraid to share bad news, instead be more strategic
about how you deliver it. Improve performance through transparency – By sharing
numbers with employees, you can increase employees’ sense of ownership.
 3. Encourage open communication: You can get insight into what things are
important to the employee by using surveys, suggestion boxes and team meetings. Be
open-minded and encourage them to express their ideas and perspectives without
criticism. This means putting into practice everything you have learned about effective
listening. Address their concerns in the best way you can.
 4. Not communicating or communicating late can damage engagement: Hearing
about an important update from the media, colleagues or family and friends can have a
negative impact on employee engagement. Ensure employees hear these messages from
the business as soon as possible.
 5. Actively promote organisational effectiveness, reputation, values and ethics:
Employees want to feel good about their leaders, where they work, the products they
sell and the reputation of their company.
 6. Culture: Encourage employees to find a personal fit with the company culture.
 7. Let staff tell their own stories (Socialise): Encourage them to tell their own stories
about what they are doing to support company strategies or embody organisational
values.

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 8. Trust: Employees need to trust each other as well as their leadership. Employees are
constantly watching leadership to see how their decisions affect the strategic direction
of the organisation and if their behaviours reflect what they say.
 9. Build engagement: Show that you’re genuinely concerned about employees’
opinions and use social media as a communications tool to build engagement.
 10. Encourage innovation: Engaged employees are innovative. They’re always
looking for a better way.
 11. Create a strong team environment: Strong employee engagement is dependent
on how well employees get along, interact with each other and participate in a team
environment.
 12. Sense of belonging: Non-work activities that foster relationships increase employee
engagement.
 13. Provide constant feedback on the positives: When people know what they’re
doing well, they’ll keep doing it – or, even better, do more of it. Providing someone
with a little recognition of what they’re doing well can go a long way toward boosting
morale.
 14. Give immediate feedback: Feedback is two way communication. It is the
opportunity to share opinions and find solutions. It’s not. It should be a daily
occurrence.
 15. Show how feedback is being used: Demonstrate to staff how their feedback is
being used.
 16. Support employees in their work and growth: How many of you have
responded to a subordinate’s idea as brilliant or even good. Success begets success.
You can support employee growth by providing education and learning opportunities,
cross training,coaching, and any other interactions that support employees’ personal
development.
 17. Collaborate and share on problem-solving: When employees get the idea that
their manager or leader is the one who has to solve all the problems, it takes away from
their sense of empowerment, and ultimately is likely to decrease engagement over time.
Encourage team members to take responsibility, and work through problems or issues
on their own, or collaboratively. It’s not the manager’s job to fix everyone else’s
problems.
 18. Delegation: Delegation is good for you because it expands your managerial span of
control. It’s good for your employees because it is a growth opportunity for them. It

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demonstrates your trust in them to do the job correctly and increases their ownership of
the task.
 19. Incentives: Incentives that are matched to accountability and results. Managers who
want their employees to be engaged recognize that incentives must be allocated based
on objective criteria and that different employees are motivated by different things.
 20. Celebrate both financial and non-financial achievements: Employees need to
feel
 Validated and that they are a valued part of the organisation. Leadership needs to show
how much they care for their employees and show recognition for efforts: “If you want
something to grow, pour champagne on it“.

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3.3 Importance or Advantages of Participation:
Here are the top advantages that come with employee participation. These are:
It motivates the other person:
With employee participation automatically comes motivation. The employees may also have
the chances of showing more creativity as well as analytical ability. Such opportunities shall
make them all the more motivated.
Costs less and handles time:
Another benefit of employee participation is that it costs less time and much less money. In
fact, it is one of the most simple and effective ways to handle money without having to waste
too much time. After all, that is what participatory decisions do.
Makes employee more creative:
The third benefit of employee participation is that it makes employee more creative and
innovative. In fact, these two happen to be some of the biggest and most essential benefits that
come with management. By simply allowing a diverse group of people to have input into
making decisions, the organisation benefits from the synergy with a much wider range of
options as well. When all the employees instead of executives and managers have the
opportunity to participate, the chances will also increase at the same time.
4. Boosts influence and capacity:
Employee participation also boosts mutual faith, cooperation, and understanding. In that way,
the employees will hardly have any disagreements with the decisions of the manager. It will
indicate that the manager may easily influence the employees so that various other decisions
can be implemented. When people are participating together and working, they are able to
boost capacity easily and influence each other in a much more positive and better way.
5. Proper work environment:
With effective management and employee participation comes a proper working environment.
The manager will listen more to their staff, ask some of their friends for a few opinions and
take them more seriously. Apart from that, the employees will also consider getting themselves
into a part of some organisation. This will result in a better and much more positive
environment at the workplace.

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Makes a more effective decision:
With effective employee participation, employees will also be able to make better decisions
which help in creating and selecting the best alternatives. For every single problem, different
people will give different kinds of solutions. And that will benefit the workplace that employees
are in drastically. Therefore the participation shall facilitate the process of decision making.
Boosts productivity as well:
The best part of employee participation is that it will boost productivity in the working
environment. An increased say in decision making will always mean that there is a strong
feeling of association now. There shall be employees who will take responsibility for their
actions and take charge of what they have done. The working hours shall be stretched out easily
on its own and the force from the management shall also be handled easily. All of this shall
easily lead to and boost productivity.
To make use of human capital:
Co-operative management will not restrict the organisations to exploit the physical capital of
such employees. Instead of making the best use of human intelligence as well as emotional
capital, it will also give all employees a good opportunity to contribute all of these ideas as
well as suggestions which will improve the process of business and create an environment
which is better.
Meeting the psychological needs of employees:
When the employees have some say in the decision-making process, it will give them some
sort of psychological satisfaction. It will also give a simple force that will drive them towards
boosting and improving their performance, creating a good channel and communication and
coming up with a practical and better solution that can design even better organisational
processes.
Retaining the best talents:
Also, another benefit of employee participation is that it will become the most effective strategy
to find talent within the industry. It will also give the employees a sense of pride to have some
say in the process of decision making. Others have been valued by the seniors. They will stick
towards the organisation and become much better management partners in meeting a few goals
and achieve better success. Finally, it is the best when it comes to boosting productivity inside
the industry.

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3.4 Disadvantages of Employee Participation:
Unlike the advantages, the disadvantages of employee participation are plenty.
Risks of security:
The sad part of employee participation is that it comes with security risks. Typically, this also
means sharing critical data and information with a larger chunk of employees. Most of the
information is needed to make bigger decisions and is always of a sensitive nature and the
company may have some concerns about the employees that are speaking about it outside the
organisation as well. The more people who know about sensitive information, the higher there
will be a risk of getting out.
Objections may come from the union:
There could be a few objections from the union as well. There are some labour representatives
who are concerned that the organisation shall use the participation of employees or a program
of involvement that may deter the employees from using the independent union representation.
The law must also continue to stop companies from setting up labour organisations. It must
also be a proper labour practice for employees to be able to establish programs that can use or
even manipulate an existing one with the whole idea of frustrating the efforts of the employees
so that they may obtain independent representation.
Management authority that is traditional:
Another huge disadvantage that comes with participative management is that all employees
end up having a hard time when it comes to finding the distinction between employment levels
and management. While removing the defined barrier between the management as well as the
employees, it happens to be a part of the management and purpose, the company will have to
designate the leaders to avoid the potential for uncertainty and chaos of command when the
situations are challenging.
Manager-Employee Boundary:
One potential challenge of encouraging employee involvement is the risk that the line of
distinction between the management level and employee level becomes blurred. Though
managers may value employee involvement, a disciplined structure with clear reporting lines
have long been vital to stability in organisations. Allowing employees to share ideas and make
decisions without having them push the envelope and try to take on responsibilities that are
reserved for management levels is a real risk.

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Communication Complexity:
More lines of communication and the potential for inconsistent decision making are
disadvantages with employee involvement systems. When more employees have input and
decision-making ability, more communication is necessary to make certain that decisions are
consistent across the organisation. This consistency is critical to brand recognition and
consistency. Managers may have a hard time monitoring decisions and activities with employee
involvement to protect against negative consequences and to restrict the potential for chaos.
The Complexity of Technology and Organization:
Technology and organisations today are so complex that specialised work roles are required,
making it difficult for people to participate successfully if they go very far beyond their
particular environment. This means that low-level workers can participate successfully in
operating matters, but they usually have difficulty in participating in policy matters.
Workers Incompetence:
Another difficulty arises when workers make proposals in areas where they are not competent.
Then, when their idea is rejected, they refuse to support whatever course of action was adopted
and soon become alienated. A related problem is that some workers expect to be consulted on
every issuer, even those to which they cannot contribute. When they are not consulted, they
become resentful and uncooperative.
Means of Manipulation:
A serious drawback with worker’s participation is that it can be used to manipulate employees.
This manipulation is not necessarily by management. It may be manipulated by the union or
by experts who are skilled in group dynamics.
Feudalistic Concept:
The feudalistic concept of the master and the servant is still prevalent among industrial workers.
Workers have an innate feeling that they are born to serve and not to rule reasons for failure of
workers’ participation in management. Participative management, naturally, is of little interest
to such workers.
Lack of Initiative:
Employees lack initiative, expertise, and self-confidence in participating in managerial
decision-making.
Unskilled Representatives:
Participation of unskilled representatives of employees may result in arriving at unfavourable
decisions which may adversely affect the interests of employees.

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Avoidance of Ideas:
It leads to frustration among employees if their suggestions are not accepted by the
management.
Unwillingness:
The unwillingness of the employers to share power with the worker’s representatives is also a
serious problem. Workers also remain disinterested.
Indifferent Attitude of Government:
The perfunctory attitude of the government towards WPM also acts as a stumbling block in the
promotion of participation of employees.

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Chapter 4: Findings and Analyses
Findings revealed that allowing all employees to participate in decision making is the best and
help increase commitment level of workers as well as promoting creativity and innovation in
the organisation. Workers were of the view that they want to be part of the team in the
organisation even though the time involved for the participation of them is limited, they feel
motivated since they are recognized. In some instances, employees are rewarded for their work
which boosts their morale to work harder towards productivity. Employee ownership was also
seen as one of the major tools to enhance EPDM in work decisions. Employees become
committed towards productivity and eliminate laziness and absenteeism of work since the
eagerness of them to receive higher returns strive them to work harder towards productivity.
From the above discussion, it is noticeable that representative participation does not enhance
positive impact on productivity, in decision making also where all employees cannot
participate, representative participation is best and has positive impact on productivity since
their grievances and views will be channelled through their representatives. Informal
participation was seen as a good medium to increase productivity since it provides a good
working environment and also allows for the flow of information. Workers were of the view
that the good relationship with their supervisors makes it easy to consult them on their job when
faced with challenges. They noted that the friendly relations even outside the working
environment motivate them to give off their best towards productivity. It was observed from
the study that in order for employees to have the right knowledge and skills to participate in
decision making, they should be trained to enable them to participate effectively.

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Chapter 5: Conclusion & Recommendation
5.1: Conclusion:
From the above stated research proceedings it can conclude that the worker participation
perspectives should be more informed and explicit to the employers and employees for the
betterment of both parties. Worker participation systems are elaborately discussed here through
stating some related contents which discuss and species reasonable terms.
Basically these terms include the proper idea of worker participation through defining it,
explaining the features of participative management and its types as well as how participative
management can be performed in an organisation. Moreover this paper has shown what are the
ways through participation and improvement for workers by which they can play a vital role in
management.
Above all the advantages and disadvantages as well as problems and prospects of employee
participation are well discussed in this research paper.

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5.2: Recommendation:
Based on the findings and analysis presented, the following recommendations are suggested in
case of participation of worker in management:
 Management should have a more responsive attitude towards workers. It should be
liberal in sharing information.
 The trade union should be strong and fully support the idea of workers’ participation in
management.
 The scope and functions of works committees should be clearly specified.
 The decisions of joint management councils must be implemented in good faith.
 Managements and workers should develop an attitude of co-operation and adjustment.
Both should have genuine faith in the system.
 The meetings of such joint councils should be held at regular intervals
 Since the level of education of Bangladeshi workers is very low, training must be given
to them for developing the right attitude to work. Programs for training and education
should be developed.
 There should be proper coordination of different unions. Multiple unions should be
restricted by legislative measures.
 The participation should be real. The decisions should be timely implemented and
strictly adhered to.
 The objectives established should be real, practicable and definite.
 The form of participation should be suitable to the working environment.
 Participation must work as a complementary body to help the trade unions in collective
bargaining. It should not be construed as an alternative to collective bargaining.

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