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The rate of current market shrinkage

In most organizations of today the rate at which the global market is shrinking has led to severe competition between businesses and industries. Employee involvement programs are the most important ways of carrying out personnel and labor relations in the U.S Conte and Svejnar, (1989). Total Quality Management (TQM) is a continuous process that strives to increase customer satisfaction, lower costs, and minimize defects and variations in every aspect and every process of the businessSilos, (2003).

The main view point of TQM is employee involvement so as to engage the employees of an organization every employee in the organization alongside its suppliers and distributors so as to improve the quality and quantity of products and also improve customer satisfaction. Employee involvement (EI)is very essential in increasing the performance of a company. The coefficients on measures of EI in production functions are usually positive but often insignificant or small Cappelli&Neumark,(1999) or contingent on other factors Ichniowski&Prennushi, (1997). Accordingly, this study investigates the extent of employee involvement (EI) on productivity, on workers through surveys however the beneficiaries of EI is basically the worker, manager and the organization itself. According to Cotton (1993) &Lawler,(1994) “EI is a program in which when well implemented it may help organizations achieve a flatter structure, eliminate substantial amounts of staff and support work, and improve productivity, quality, and employee attitudes--issues critical for companies to keep a strong position in a highly competitive marketplace”.

It has been researched that in the presence of employee involvement programs there has been wide varieties of numerous benefits including increased individual and team performance, better quality, less absenteeism, reduced employee turnover, a reduction in work-in-process inventory, leaner plant structures, and substantial improvements in production cycle time Manz& Sims, (1987),Versteeg, (1990) and Harris, (1992). Although research indicated that the benefits were enhanced and supported due to the convenient working environment in the US.



In today’s competitive market, knowledge is essential for all employees in an organization to have the passion, commitment and enthusiasm towards promoting teamwork to ensure that “Right information, reaches the right individuals at the right time”, which is the optimum goal of an organization Simon H.A, (1991).

Employee involvement is an essential source of growth to an organization and management, working in a knowledge intensive organization allows application of devise skills, experience towards processes and solving matters.


Goal Setting: Employee involvement helps organizations to set goals. According to Darraugh, B. “Goal setting is one potential technique for increasing employee involvement in order to further develop the market orientation of firms in transition economies such as Croatia and Slovenia”. Goal setting has been researched and has been proven true to be a means of increasing employee productivity while providing a motivational environment for the workers. Goal setting theory has two major functions, Goals help the individual select behaviors in which to engage, and goals guide the amount of effort that an individual puts into a behavior Locke &Latham, (1990).

However, an individual must be able to identify the goal and put it to work before it can be an effective tool. The goal setting research indicates that the more accurate a goal to be accomplished is the more level of performance a worker is meant to put in and due to that fact there is a linear relationship between the stages a goal gets complicated and performance level Tubbs, 1986; Wood et al., (1987). Goal settling researches are mostly done in the US and are not readily available in Europe or Asian countries.Pritchard et al, (1988).

Effect on Employees: To ascertain the effectiveness of EI on workers, the management made use of workRepresentations and Participation Survey, WRPS, Freeman&Rogers, (1999). This is a nationally representative survey of some 2400 workers in firms with over 25 employees that focuses on employee attitudes toward various labor practices. The WRPS is a cross section, so that workers cannot be followed from a firm with an EI program to another firm or conversely. But EI participants can be contrasted to non-participants in companies with programs and to employees in companies without programs, and can determine how employees view their firms’ EI program.


Employee evolvement is a participative style of management which is sometimes referred to as employee engagement which is a range of activities designed enhance employee’s commitment, understanding, decision making skills and encourage the development of their talents so as to increase their productivity of an organization Miller.s. (2008).

EI is not just a mechanism for creating goals but also used to develop the reasoning capabilities of employees so as to be a base for leadership in order to create workers which would contribute to the success of the organization. According to Robbins& Coulter. (2003) he said that EI is a technique which enhances productivity, motivation and job satisfaction although it does not always maintain employee performance but could be beneficial under the right conditions. In the presence of employee involvement the employees would have the certain qualities such as the employees are able to have a positive mind set, be able to co- relate with workers or customers in a respectful manner and also to render positive remarks about the company and the advantages of clients purchasing from such company.


Background Information

In any type of organization safety is a necessity. It has been shown that whether the organization is large or small all types of safety measures are needed to be considered to ensure employee involvement in the operation of the organization Anderson et al, (2002).

Stewart,(1996) argues that managerial decisions can have either a positive or negative effect on employees. Managers are meant to create a safety working conditions for its employees in order to establish a free flow of work force and information throughout the organization, which in return on the part of its employees it increases their morale to do more than expected of them and increases job satisfaction among employees. EI has been fused into safety management in countries such as Europe and US although still being tested in the business world but it actually improves the employees’ mental, physical and practical operations in the organizationBicos, (1990).

Sashkin (1984) identifies that EI in the workplace makes the work look more meaningful in the mind of employees and increases the extent to which employees lack communication or isolate themselves from other co-employees in the work place. His theory is there by based on increased EI in the work place to solve the problems of poor management system. EI enables employees to share resources between themselves, through engaging in tasks together as an effective work team. In the process of applying EI to a decision making process it’s often referred to as delegator involvement which shows that EI increases job satisfaction Katzell&Guzzo,(1983).

According to Sass,(1986)Employers must have the attitude and zeal to be accountable for the necessities and rights of its employees by making the environment as safe as possible and having in mind the consequences which would be fall the organization if these needs are not taken into consideration. Basically Sass has argued for the idea of workers safety rights to be an important matter in an organization in which he underlined those rights as the right of an individual to be able to refuse dangerous or hazardous work, the right to be thoroughly informed about matters in the organization and lastly the right to contribute in decisions which would affect the workplace in any form.

4.1Key Point One

Managers Involvement

According to Ashton & Sung (2002), through a scientific research it is evident that employee involvement creates a positive effect on productivity and profitability. In order to reach the peak of employee involvement it always comes down to the managers and how effectively they managing their employees and the working environment. In an organization in which managers lack the competence to establish training sections for the employees and a void listening to the employees believing they have the power sue to being in charge it would have an adverse effect on the employees thereby decreasing their morale to do more than is required and thus reducing employee involvement and productivity.

Pitcher (1993) has identified three personality types of managers: The technocrat who is always controlling and doesn’t take nonsense, one (artist) who is endowed with visions and dreams and lastly the craftsman who has been in the business for a long period of time. Managers should endeavor to be concerned for their employees by having meetings with employees to know their views on matters of the organization, to do annual report writing about the organizations position in the market and what can be done to make the workplace a healthier working environment. It has been noted in USA, UK, Australia and Canada that employers stand a chance to gain higher profits, better quality product and have a competitive stand by havind the skills in communicating with employees so as to support an effective EI reach Applebaum et al, (2000).

4.2Key Point Two

Select Train Committees and Facilitators

The development of a team ensures a balance of an individual’s personality due to its nature of being critical for it to function properly Sashkin,(1984). In an organization it is vital for all or most employees to have the same mind set so as to analyze and achieve the same kind of results, however it’s important for employees with different ways of thinking to be brought together and taught on how to arrive at the same decision as one entity although preserving each employee’s abilities. It is essential to bear in mind that when selecting committee members it takes several personalities to be able to integrate and bring reformation to the organization Nykodym et al, (1995). The organization should select facilitators and engage them in a 5 day training program to ensure they have the ability to assist in meetings concerning the organization.

Training employees is very important in organizational health, according to Pile (2002) training is a gift which shouldn’t be thought of as an expense but instead it should be seen as a profit and insurance. A skillful trainer has appropriate qualifications, follows a basic plan, evaluates the plan, tests the plan, documents the process required and maintains the focus of training Robotham, (2001).

4.3Key Point Three

Leadership Responsibilities

According to Edgar Schein, (2004) he defined culture as a means through which assumptions learned by a group solve problems as a single unit. He continues in his theory that the inability of leaders to manage culture the culture itself will manage everyone. A good leader has to demonstrate a strong working ethic and also have the ability to manage, lead and pay optimum attention to its employees Becker & Billings, (1993).

It is the responsibility of the manager to inspire their staff and at the same time pay attention to the staff’s welfare. In a case whereby the manager is making a lot of money and workers are getting pennies while working over time they will notice and that will decrease their moral to work more so it is wise for managers to act to their employees in a way that they think the manager thinks of them as valued personnel and not as machines or robots to bring in money to the organization Blau, (1964)in other words looking out and having the interest to know more about employees and think of their welfare both in monetary and safety wise in an organization is an important way of showing leadership qualities. A manager is not meant to do things in silence without letting the management know about it, when practices are conducted without informing the management or the boards of directors and would not want the press to have their hands on the information then the organization is heading to a down fall Bluedorn, (1982).

When practices are carried out in the organization to benefit a group of people in the organization at the expense of everyone leads to a down fall. Having the right attitude towards work is very important and effective in organizational practices, having the courage to speak up when things done are wrong can sometimes have an adverse effect at first but can be a higher price if one kept silence .


Effective communications between managers and employees are essential to the success of employee involvement. It is important to create the right climate and maintain communications systems that assist the free flow of information within an organization. Regular meetings also help to involve employees. Companies should increase job satisfaction and motivation which moves the organization to reward their employees by incentives and rewards after hard work. Research indicates that job satisfaction aids decision making processes positivelyBateman & Organ, (1983).

It was explained by Berkowitz,(1972) that employees are willing to work and cooperate with their co-workers in a community where by their managers’ take or show appropriate concern about their work and also their daily life in terms of health and safety in and out of the organization and also companies should improve quality and competitivenessinternally and externally which keeps an organizations performance at the top amongst others.


It can be noted from the descriptions by the authors that for effective employee involvement it is important for the managers not to think so high of themselves and be able to communicate with the employees so as to create an environment where there will be a free flow of information. The employees should cultivate the habit of adapting to each other’s lifestyle so as to be able to work effectively with each other and lastly the manager should be able to understand employees’ rights so as not to assume wrongly about the employees characters in order to create a good working condition.

5.1 Key Point One

In my own opinion managers lack the ability of communicating with employees, there is little interactive sessions between the managers and employees, innovation and understanding of clients and without effective communication, it is difficult for the employees to be at the best in their work thereby making the employees not to be at ease with their job and have effective concentration due to the knowledge of knowing that they might be laid off at any point in time. It is evident that employees see their managers as an informant about the status of their job as well as the developments taking place in the organization which will affect their performance one way or the other, so its important to ensure a quality employment relationship between both parties in which both parties gain from each others because an employee cannot live without the directions of the manager as well as the manger cannot conduct the smooth running of practices in the organization without the employee.

High performance working companies rely on the maintenance of high quality working relationships Hutt & Read, (2003). That is, employment associations should be supportive not confrontational. In the employment relations act 2004 supports employment relationships between employers and unions and support cooperative and productive relationship between managers and employees Cochrane et al., (2004). It was showed that the highest level of productivity growth was found in firms which had high employee involvement with the innovation of new work practices such as bench marking; self managed teams and also TQM.

5.2 Key Point Two

In this case joint consultation refers to the official form in which employees in a work place communicate with each other mostly on making decisions which would affect the performance of the organization. In my opinion it is necessary for employees to be at the same level in terms of knowledge and understanding so as to create an environment of success. It is always visible to determine a company with bad employee co-operation, the first sign is in terms of sales due to un equal division of labor among employees, the second sign is in terms of the employees saying bad things about the company in which they work in and lastly the amount of staff turn over made by the management due to unskilled personal. It is important for employees to cooperate and work together because it leads to new innovations and ideas which can help the organization because it is difficult for an employee to know everything, there is no knowledge gained that is wasted so in order to enhance this joint consultation it is important for meetings to be held as appointed and the managers or supervisors should endeavor to be present so as to encourage a free flow of information between the staff and also the managers and supervisors.

Joint consultation is a process established to clarify existing policies or new ones to be formed in future but not used as a means to alter discussions or methods of communication so in the presence of any matter revealed due to this process it must be undertaken by the consent of the assigned committee (, 2007).

The objective of a joint consultation process is to improve employees’ co-operation in the management and also in decision making processes which enhances the working environment as well as enabling the employees to have a say into matters of the organization and also their lives joint consultation, (2006).

5.3 Key Point Three

Employees Rights are entitlements to perform or not perform certain types of dealings in an organization. It is the rights of an employee to refuse some types of work in which he/she would be certain that it would cause an adverse effect to him/her. It is impossible for a manager of a company to tell an employee to work in the manufacture office which deals with smoke while having the knowledge of the employee medical background such as asthma. It is important for employees to speak out and not acquire any department given to them by the management which would cause an adverse effect or a department in which they know it would be hard to function such as a person good in English field being thrown to the finance department of the organization because in a case whereby the employees are not in a healthy state or lack the knowledge regarding ones department it can lead to a decrease in organizational profit which affects both the management and as well as the manager. Lastly it is important for all employees to be treated as equal not favoring some and despising others which leads to favoritism and reduces the morale of other employees to do more work. It is important for managers to be aware of these rights and should endeavor to communicate with its employees so as not to make a drastic mistake in assigning duties which can lead to the downfall of the organization.


In my analysis it can be noted, the effectiveness of communication between the staff and also among the manager and how it affects and improves employee involvement and lastly the importance of the manager adhering to individual rights so as not to make a mistake or stepping on the toes of its employees and how it can benefit EI in the workplace such as an increase in morale, division of labor and also create an environment for cooperation. Above all, my analysis displays the processes and benefits achieved by implementing or incorporating employee involvement into the workplace.


This assignment was done in an attempt to understand what employee involvement is all about, in which points were provided on the effectiveness of EI in the working place. From the analysis above I can conclude that EI is an important asset, both the employees and the manager.

For this EI to be accomplished in the work place it is necessary for both parties to be dedicated and committed to each other’s work, values and work as a group in order to achieve this in the work place. In the presence of competition it is important for the organization to have the same ideas and work together to bring about an effective and efficient increase in sales to counter attack its competitors.

This research can create the awareness and importance of employee involvement in the organization and as well as on the part of employees such as the increase of skills, ideas and a new mind set which can affect the productivity of the organization there by reaching organizational goal.


Employees should be able to work with each other by creating meetings or seminars to enhance the flow of communication and ideas. Managers should be aware that the most important asset in the organization is its employees which can bring profit or the downfall of the organization. Managers should be able to listen and communicate with its employees to know their likes and dislikes so as to create a good working environment without arguments.

Managers and supervisors should be present in any briefing or meeting and not have the mind set of being above others in order to use that as a yard stick to miss the meeting. Lastly for effective EI bonuses and appraisals should be given to employees that work hard so as to increase their morale and also the other employees to do more which will boost the organization in terms of efficiency, production and profitability.

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