Employee Participation in Decision Making - Essay Example

Employee Participation in Decision Making Name: Institution: Employee Participation in Decision Making Research has demonstrated that employee participation in decision making plays a critical role in improving organization effectiveness and efficiency as well as overall performance (Agarwal 2009). Other benefits associated with employee participation include increased commitment, job satisfaction, and reduction in conflict, change resistance, and feeling of achievement among the employees. However, there is need to understand the meaning and levels of employee participation. Employee participation has been defined as individual employee perceived influence on the decision making process of an organization (Agarwal 2009). This is particularly demonstrated in the process of introducing and implementing changes within an organization. In addition, participation also implies the active involvement of employees either at individual level or through representation in making of decisions that affect their workplace environment or operations. Employee participation can also be defined as objective participation under circumstances where an employee believes or demonstrates that they had actual influence on decision made in an organization (Fritzenschaft 2013). Participation can also be formal and indirect in which employees have the opportunity to select a few individuals to represent them in decision making process. Through this form of participation, representatives are assumed or expected to present the views and interests of other employees in the decision making process. Informal and direct participation involves exerting direct influence on decisions (Kusluvun 2003). As such, this paper explains why the management of an organization that does not actively encourage its employees to participate in decision-making processes, to assume responsibility and exercise initiative as appropriate need s to encourage and establish a culture for assuming responsibility and initiative. The Impact of Employee Participation on Performance or Productivity With regards to the understanding of employee participation in an organization a defined, it emerges as one of the best practices that the management of any organization should encourage and support. According to Kusluvun (2003), effective teamwork, communication and employee participation in decision making form central pillars in promoting improved employee performance. Involvement of lower level employees in organization decision making processes has been demonstrated to have positive impact on service quality especially in the hospitality and tourism industry. Employee participation in decisions making and the freedom to assume responsibility and initiatives has been shown to translate into improved employee performance with consequent improvement in the overall organizational performance (Kusluvun 2003). This is achieved through enhanced employee satisfaction levels in which employees enjoy their work and contribute to continuous improvement of their performance. It is important to note that improved employee satisfaction has positive impact on not only productivity but also results into enhanced customer satisfaction and expansion of market share. According to Evans (2016), the organization can benefit from improved employee satisfaction through improved customer satisfaction with consequent reduction in warranty costs and expansion of the organization’s market share. Therefore, encouraging employee participation, assumption of responsibility and taking of appropriate self-initiative in the operations of the organization holds great potential in promoting customer satisfaction and business success. The organization management needs to appreciate that employee satisfaction realized from employee participation forms a powerful tool for attraction, recruitment and retention of skilled employees. Employee Commitment Another important benefit associated with employee participation and freedom to take appropriate self-initiative revolves around employee commitment and development of the feeling of ownership. This further translates into loyalty to the organization with consequent effectiveness, efficacy and improved individual performance. High levels of employee commitment and loyalty creates a win-win situation for the organization through improved quality of service, productivity and high-quality life with consequential effect on the organization’s financial value or returns (Evans 2016). Committed and loyal employees are more empowered to assume responsibilities as well as initiate actions or activities to the benefit of the organization. In this case, encouraging employee participation in the organization would enable the organization to enhance employee commitment to the organization and loyalty, the exit of talented employee and reduce costs associated with errors in the organization. Through improved employee commitment, the organization stands to repeal immeasurable benefits including efficiency and effective in the organization’s operations. Commitment to the organization would resolve common workforce challenges such as employee absenteeism and possible actions sabotage. Participation and Change Implementation Employee participation in the decision making process regarding organizational change has been demonstrated as important in achieving successful change implementation. The only way the organization can determine employee reaction to an organizational change is through employee participation. Encouragement of employee participation in change decisions is an effective strategy for creating a sense of personal control or ownership of any proposed change among the employees. Involvement of participants in decision making processes encourages employees to adopt direct behavioral efforts in support of the proposed change and commit themselves towards controlling various change related activities for the organization to realize desired outcomes (Antoniou & Cooper 2005). Studies have shown employees with high levels of perceived participation in decision to introduce new technologies in their workplace report reduces cases of psychosomatic health complaints and job-dissatisfaction compared to employees with perceived low levels of involved in the change decision making process (Antoniou & Cooper 2005). Information provision and employee participation has been associated with change-related efficacy and readiness for change among employees experiencing organizational change. Employees with high levels of change-related efficacy are less likely to be distressed by feelings of inadequacy with consequent persistent in their efforts to ensure the change implementation process is successful. Direct participation of employees in work-related decision making process has been identified as a strong determinant of self-efficacy expectations with subsequent impact on the change implementation process (Antoniou & Cooper 2005). Participation creates a strong belief among employees in their abilities to adjust to the organizational change. Allowing employees to be part of the decision making in every proposed change in the organizations enable them to develop a feeling of ownership in the proposed organizational change. Employees involved in the change decision making process feel personally responsible in the change implementation and offer continued support for the change despite the challenges that may arise in the process of implementation. The management should also understand that employee participation plays an important role in ensuring that all employees understand the causes, consequences, and implications of the change. This is crucial in addressing uncertainties concerning the change that often translate into change resistance. Allowing those affected by the change to develop a sense of ownership is a powerful change management tool for ensuring success implementation of an organizational change. Employees often develop resistance to organizational change if they perceive the change as being opposed on them. In cases where change decisions are made the top management, its implementation is likely to face significant resistance or lack of readiness among lower level employees (Agarwal 2009). This is also likely to happen the organization management does not provide adequate information regarding a change. In such cases, an organization is likely to experience serious resistance to any change in the organization with eventual serious challenges in the implementation of such change. As such, the management of the organization in question should acknowledge failure to encourage employee participation in decision making including change decisions risk major challenges in implementing any change in the organization. With the current highly dynamic environment in which organizations operate in, organizations need to cultivate a culture with the capacity to support successful change in their operations. Therefore, one of the strategies for ensuring successful change implementation revolves around encouraging employee participation, assumption of responsibilities and freedom to take appropriate initiatives. The organization needs to encourage employee participation, assumption of responsibility and self-initiative as one of the major strategies towards preparing for inevitable change in the organizations operations. Employee Self-Initiative and Innovation Encouraging self-initiative and assumption of responsibility among employees creates a win-win situation for an organization including improved efficacy and innovation in the organization. The organization management should strive to empower employees to take appropriate self-initiative and assume responsibility in the organization operations. Encouraging self-initiative among employees creates an environment in which individual can try new ways of doing things with consequent improvement in efficiency through innovation(Kusluvun 2003). Through self-initiative, organizations stand to benefit from time saving, increase efficiency and effectiveness of organization’s operations. Encouragement of self-initiative among the employees has the potential to increase customer satisfaction through timely delivery of customer services as well as resolution of customer concerns. In addition, promotion of appropriate self-initiative establishes an organizational environment that supports innovation. Through this practice, organizations are likely to discover new ways of carrying out certain operations in the organization with increased efficiency. This practice encourages employees to try new strategies without fear of potential repercussions incase what they are trying does not turn out to be successful. Allowing employees to assume responsibilities and self-initiative creates an environment under which solutions to arising issues can be found. Advice to the Organization Management As an organization that does not actively encourage its employees to participate in decision-making processes, and to assume responsibility and exercise initiative as appropriate, it is important to note that the organization has either been losing out a lot or stands to lose in the near future. There is sufficient research evidence to suggest that organizations that actively encourage employees to assume responsibility and initiative as well as promote participatory decision making reap immense benefits. The organization’s management needs to understand that such a move would translate into improved individual employee performance and productivity. This includes improved quality of service with consequent enhanced customer satisfaction. Encouraging employee participation in the organization would enable the organization to enhance employee commitment to the organization and loyalty, stop the exit of talented employee and reduce costs associated with errors in the organization. The organization stands to reap through guaranteed successful implementation of organizational change. Involvement of participants in decision making processes encourages employees to adopt direct behavioral efforts in support of the proposed change and commit themselves towards controlling various change related activities for the organization to realize desired outcomes. Allowing employees the freedom to assume responsibilities, self-initiative and participation in decision making empower employees to tryout different ways of doing things as well as providing solutions to problems related to the organization’s operations. Through self-initiative, organizations stand to benefit from time saving, increase efficiency and effectiveness of organization’s operations. Encouragement of self-initiative among the employees has the potential to increase customer satisfaction through timely delivery of customer services as well as resolution of customer concerns. in conclusion, the organization’s management should encourage employee participation, responsibility assumption and self-initiation in the organization’s operations owing to the immense benefits capture in this paper. This demonstrates that such an effort or commitment by the management guarantees a win-win situation. Reference List Agarwal, K 2009, Perception management: The management tactics, India: Global India Publications. Antoniou, A & Cooper, C 2005, Research companion to organizational health psychology, London: Edward Elgar Publishing. Evans, J 2016, Quality & performance excellence, Stamford, CT: Cengage Learning. Fritzenschaft, T 2013, Critical success factors of change management: an empirical research in German small and medium-sized enterprises, London: Springer Science & Business Media. Kusluvan, S 2003, Managing employee attitudes and behaviors in the tourism and hospitality industry, Nova Publishers. Read More