1. 10/31/2013
Iman M. Ahmed Ibrahim,
HRM, Mba5, sem.3

2. CHAPTER FOCUS
the effectiveness of employee involvement EI
initiatives as seen from managerial point of
view. The discussion is based on findings of
many surveys undertaken in large British
companies. Commitment and empowerment
as objectives to be achieved through EI is
embodied in the analysis.
Important points covered: EI concept,
importance and objectives; types of schemes;
lessons learned and strategies.

3. EI was identified as “offering employees
a feeling-state, such as belonging or
commitment; information about the
organization and its environment;
some financial reward; a share in
decisions regarding:
Work organization ; Personnel issues; Social
matters; Business matters.

4. THE IMPORTANCE OF EI:
management pay greater attention to support
their employees, because of :
• labor market pressures;
• the need to improve cost competitiveness;
• the need to gain cooperation for the
introduction of new technology;
• The need to enhance competitiveness;
• the importance of EI is stressed as a source
for improvement in employee relations and
was seen as key feature of personnel policy.

5. OBJECTIVES FOR EI
• Develop a positive attitude: improve
morale; increase loyalty and enhance sense
of belongingness;
• Create business awareness: improve
knowledge and understanding of the reason
for management actions;
• Incentive/ motivation source: enhance
cooperation and team spirit;
• Increasing employee influence/ ownership:
increasing Job control;
• Trade unions: restrict scope of union
dealings.

6. TYPES OF SCHEMES
1. Job redesigns developments:
Benefits: they are means to improve performance in
term of quality and task flexibility, thus enhancing
work experience and skills.
2. Quality Circles QCs:
Benefits: improved quality; cost savings; increased
employee commitment and willingness to be flexible
and enhanced supervisory authority and leadership
skills.
Problems: they neglect top management support; the
need for a facilitator to promote and sustain the
programme; getting union in side.

7. TYPES OF SCHEMES
3. Team working:
Benefits: advocates for task flexibility, cooperation,
increasing quality and productivity.
Problems: tamed and harnessed to the goal of
management; Loss of senior management backing or
direction ; reluctance of managers to hand over
responsibilities to teams.
4. Total Quality Management TQM:
Benefits: commercial success comes ;creating a culture
of continuous improvement
Problems: there are doubts concerning its participatory
potentials:

8. TYPES OF SCHEMES
1. Team briefings:
Benefits: increased organizational commitment;
reinforcing management legitimacy through
information provision.
Problems: seen as dispensable in times of pressure
tending to reduce credibility; unlikely to transform
employees attitude; bureaucratic, liable to decay.
2. Two way communication:
Benefits: offering employees a chance to express their
views and be listened to thus increases commitment.
Problems: contingent on the atmosphere of employee
relations; maintaining momentum is likely to be
formidable.

9. TYPES OF SCHEMES
Joint Consultation Committees:
Benefits:
• active cooperation and support;
• exclusion of unions from employee representation.
Problems:
• Committees have little impact on employee relations;
• Committees may breakdown because of the severity of
problems or because of conflicting expectations .
Important considerations:Consultations to be undertaken in
advance of decisions being settled; ensure that JCCs don’t
lose momentum;Resourcing;reporting back to
constituents;Training;senior representation; swift action;
keep union informed.

10. SCHEME TYPE
Objectives: attitudinal change; ant-unionism; making
society more justice; securing commitment.
Types:
1. employee share ownership ESO:
gaining a
direct stake in the company ;
2. profit sharing PS: providing a cash bonus from
the revenue surplus.
Performance: FP may have indirect influence in
attitude, employees mention that ESO makes them
work harder and make them more cost conscious.

11. CONCLUDING REMARKS
Practical lessons:
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Management commitment should run further;
Support for EI ensured throughout the management system;
Proper advance consideration of objectives is necessary;
Training is essential: show commitment &ensure
competence;
Adequate and impartial monitoring of schemes is essential’.
Problem and shortcomings should be identified;
Attempts to bypass or undermine established trade unions
by means of EI schemes are likely to fail.
EI must fit with HRM strategy: EI is one key to workforce
performance that is essential for achieving a competitive
edge.