Chapter 11

Total Employee Involvement

Abstract

This chapter highlights employee involvement as a major tool of total quality management. The five components of employee involvement viz, motivation, teamwork, employee participation, assessment, and recognition, are discussed in detail. Also explained are the motivational theories, the features of the teamwork, the decision theory, and resistance to change.

Keywords

Total employee involvement; Motivation; Team work; Theory X; Theory Y; Maslow’s theory; Empowerment; Performance appraisal; Recognition and rewards; Average worker; Hierarchy of needs; Survival; Security; Esteem and self-actuating needs; Motivators and dissatisfies; Job rotation; Enlargement and enrichment; SREDDIM; Nonconducive team members; Decision classifications; Decision situations; Resistance to change; Empowerment; Extrinsic and intrinsic rewards

11.1 What is Total Employee Involvement?

Total employee involvement refers to an approach by which all the employees participate in work-related decisions and improvement projects. The principle behind this approach is the fact that the man on the job is the best person to spot and pinpoint areas for improvement. This approach comes from the Japanese philosophy of Poka Yoke. As a matter of fact, the term total is not used in the same sense as the term total in total quality management (TQM). The more commonly accepted term is employee involvement, but in view of the popularity of the term total in TQM, total productive maintenance, etc., it is used here also by some authors and has come to stay. In this context, the term total is an attribute of involvement, rather than of employees.

Total employee involvement approaches can range from simple sharing of information or providing input, or suggestions on work-related issues, to self-directed responsibilities, such as setting goals, making business decisions, and solving problems, often as a part of cross-functional teams.

The major components pertaining to total employee involvement are:

 Motivation

 Teamwork

 Participation

 Performance appraisal

 Recognition and rewarding.

11.2 Motivation

Motivation is the basic psychological factor in that makes an employee feel he is part and participle of the company, and getting him to work with his full heart and soul on the job. This has been a subject of interest since man started living as a social animal. Several theories have been developed to understand this psychological factor. The following are some of the theories propounded on motivation.

11.2.1 Theory X and Theory Y

These two theories are based on the general attitude of individual employees with regards to their work.

The former, X theory, propounded by Sigmund Freud, considers the negative aspects of human nature and presumes that a worker, by nature, is sluggish and avoids working. This theory propounds that:

1. The average worker has an inherent dislike of work and tries to avoid it when possible.

2. The average worker lacks ambition, shows no initiative, and accepts no responsibility.

3. The average worker desires job security and economic rewards above all other things.

4. The average worker prefers to be closely directed. To make him work, the management has to resort to rewarding, coercing, and sometimes punishing.

5. The average worker is self-centered and indifferent to overall organizational goal achievement.

6. The average worker is resistant to change.

The latter, Y theory, propounded by McGregor, on the other hand, considers the positive aspects of human nature and presumes that the worker, by nature, wants to learn and develop himself. This theory propounds that:

1. For the average worker, working is a natural and necessary activity, and he subjects himself to self-discipline.

2. For the average worker, rewards and job security are only two of the economic benefits desired. He learns under intrinsic rewarding conditions to seek and accept more job responsibilities.

3. The average worker is committed to goals that enable him to self-actualize.

4. The average worker seeks freedom to work on difficult and more challenging jobs all by himself.

5. The average worker has a lot of initiative and creativity to aid his growth and the accomplishment of the goals.

11.2.2 Theory Z

The Japanese have added one more theory based on employee relations developed by William Ouchi —that workers like to build relationships with other workers and management, to feel secure in their jobs, develop skills through training, and value their family life and traditions.

The existence of these three theories helps the management in realizing the capabilities and limitations of workers and to adjust their leadership approaches as demanded by the situation.

11.2.3 Maslow’s Theory of the Hierarchy of Basic Needs

Abraham Maslow propounded that man is motivated mostly by fulfillment of his basic needs, which vary as time passes, and as he achieves higher levels during his career. Once the lower level of needs is satisfied, he is no longer motivated by that need. He wants to go a step higher. As illustrated in Fig. 11.1, as a man starts his life, his basic need would be food, shelter, and clothing for survival. That means he just wants to earn sufficient money to feed himself and his family. Once this is satisfied, his need would then be to have a secure job and life. This level includes a satisfying job and a safe working environment. At the next level, he needs to satisfy his ego or social needs, that is, the need to be part of a society around him. Within the organization, he would like be a part of the group of workers with whom he can have day-to-day free exchange of thoughts. Once this is satisfied, his ego or esteem needs surface. He wants to be recognized in the society as someone important. At the self-actualization level, he wants to be appreciated as a man of achievement. He wants to be given opportunities to go as far as his abilities can take him.

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Fig. 11.1 Maslow’s hierarchy of needs.
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Fig. 11.2 Two illustrative slogans for Teamwork.
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Fig. 11.3 Effect of worker representation on productivity.

11.2.4 Herzberg’s Two Factor Theory

Frederick Herzberg propounded the two factor theory. He classified the motivating factors into two broad classifications as motivators and dissatisfiers.

The need for recognition of achievement, advancement, or accepting responsibility, which are basically intrinsic in nature, are called motivators, whereas low salary, an unsecured job, poor working conditions, mediocre management policies, or snoopervision, which are basically extrinsic in nature, are called dissatisfiers. The latter are also called hygiene factors, as they can be minimized by effective management, thereby increasing the motivation factors. Absence of motivators does not necessarily dissatisfy the employee, but their presence would provide strong levels of motivation.

11.2.5 Achieving a Motivated Workforce

Besterfield et al. indicated the following eight requirements of management in creating an environment of motivation among their subordinates, as propounded by Theodore Kinni.

1. Know thyself: First the managers must understand their own strengths, weaknesses, and motivations and conduct strengths, weaknesses, opportunities, and threats (SWOT) analysis. They should realize that their success largely depends upon their capacity to influence and guide the subordinates in their progress toward the goal.

2. Know your subordinates: Managers should have the full knowledge of the interests and emotions of the subordinates. They would thereby assist them in directing their effort toward the achievement of their goals by utilizing their strengths.

3. Establish a proper attitude: Managers must treat their ideas and suggestions in a positive and constructive attitude, and implement them as and when they become appropriate. The feedback, too, shall be positive and constructive.

4. Share the goals: A well-established team shall have well-established and clearly understood goals, and know their individual role in the team. All the team members, including the leaders, shall strive equally for achieving the goal.

5. Monitor progress: All the activities involved in the efforts of achieving the goal should be well-documented and all periodic (daily or weekly) targets and time schedules shall be indicated and clearly explained to each member. This is like preparing and explaining the road map for achieving the goal, indicating details of the journey milestones and individual assignments. The progress shall be monitored by the leader periodically with proper feedback to the members, as well as the top management.

6. Develop interesting work: The management should endeavor to make the job interesting to the employee, instead of being monotonous, repetitive, and creating mental fatigue. As a matter of fact, man by nature is prepared to exert himself for physical fatigue, but abhors being loaded with jobs that cause mental fatigue. Job rotation, job enlargement, and job enrichment are the latest methods for creating job interest. Job rotation makes the employee work on different jobs, one after the other. Job enlargement ensures that the employees perform a number of jobs sequentially. This is in typical contrast with the job specialization propounded by F.W. Taylor that had been long accepted as the basic scientific management principle. Job enrichment adds planning, inspection, scheduling, etc., decision-making elements to the job, so as to increase the sense of responsibility to the employees and satisfy their esteem needs.

7. Communicate effectively: The importance of proper communication needs no emphasis. Providing the employees with full knowledge about their work eliminates the unwanted grapevine information. A road map as indicated in Fig. 11.4 shall be planned and explained in detail.

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Fig. 11.4 Top management role in employee involvement strategy.

8. Celebrate success: Always be free and frank in complimenting the employees for their contribution to the successful achievements. This will motivate them to contribute further.

11.3 Employee Involvement Strategies

The following are some of the strategies to ensure the involvement of the employees.

Suggestion Schemes: Programs that encourage individual employees to put forth their ideas of improvement in the process, or any operation or work environment.

Survey Feedback: The use of employee surveys as a part of the larger problem-solving process, in which the survey data is used to encourage, structure, and measure the effectiveness of employee participation.

Quality Circles: Groups at the shop floor-level, meeting voluntarily and regularly in a structured environment under the guidance of the supervisor to identify and suggest work related improvements. In view of the significance of this concept in the recent decades, this is discussed further in detail in later chapters.

Job Redesign: This involves the three elements discussed earlier—job rotation, job enlargement, and job enrichment.

Self-Management Teams: Similar to the quality circles, but with a definite assignment like safety incorporation in certain processes. This may also include certain support functions, like hiring of personnel for that assignment.

Employee Participation Group: This involves all levels of employees, convened by the management for a particular task.

11.4 Teamwork

A team is a group of interdependent individuals who have complementary skills and are committed to a shared, meaningful purpose and specific goals with a common collaborative approach. They have a clear understanding of their responsibilities and hold themselves mutually accountable for the performance of the team. Effective teams display confidence, enthusiasm, and continuously seek to improve their performance.

11.4.1 The Three Elements of Teamwork

(a) Respect: Respect means giving due value to other team members for their professional expertise and their commitment to the purpose of the team.

(b) Commitment: It implies sharing of loyalty and devotion to the principles of engineering practice. The engineers must share their ideas freely and frankly with one another, despite the fact that there may be competition among engineers in their profession. This is possible by their commitment to their profession getting the better of their need for individual recognition.

(c) Connectedness: This is where the team spirit lies. To be working closely with other team members, one requires the spirit of cooperation and mutual understanding. Each should know the emotional attitudes of the other and be ready to share his personal feelings with them. This element leads to the success of many endeavors.

The teamwork is also called synergy, a term indicating synchronized application of individual energies (Fig. 11.2).

11.4.2 Categories of Teams Based on Natural Work Units

Often corporations are not systematically organized, and work is allocated based on current workload and/or past experience. By this, work appears to move randomly around the organization. On this basis of work allocation, work creates little or no meaning or value to the employees, and they feel little sense of ownership and responsibility. On the other hand, creating natural work groups depending upon what is to be achieved and allocating work on the basis of these groups, make the employees identify more with the work and to take ownership and pride of achievement. This will often lead to improved quality through the sense of responsibility of the individual. Table 11.1 below indicates some of the categories and features of these natural work groups.

Table 11.1

Natural Work Units

S.No.CategoryFeatures
1GeographicalAssigning work based on a particular location, state, or country branch to which the employee is attached. For example, the Chennai unit, or Andhra Pradesh Unit, or the US branch of an Indian Company.
2OrganizationalAllocating work according to the division or department, like manufacturing or marketing.
3Product-wiseIn cases where a corporation manufactures a variety of goods and has separate production lines or departments for them, this category allocates work based on the product group.
4AlphabeticalCustomer processing work may be assigned according the alphabetical order of the customer’s name, for example their initials can be grouped as A–E, F–L, M–R, S–T, and U–Z.
5NumericalAllocating work in supply depots, etc., which involves processing a large number of components numbering over 10,000, then the work allocation can be as per the component number or the bin location.
6Customer-wiseAllocating work as per the customer size or type, like large corporations, medium industries, small industries, high net-worth individuals, etc.
7Industry sectorIn order to make the optimal use of an individual’s experience in specific industry sectors, the work can be allocated based on the company’s dealings with industry sectors, such as linesmen, automobile, property, medical, educational institutions, etc.

t0010

11.4.3 The Basic Functions of the Team

The basic functions of the team are better understood by the word “SREDDIM.”

Selectthe job to be studied.
Recordall the facts and factors about the present method of operation in sufficient detail by using easily communicable representations, such as charts and diagrams.
Examinethese factors in the original process, by critical questioning, using techniques best suited for this purposes.
Developthe most practical, economic, and effective methods with due regard to all the factors.
Definethe new method so that it can always be identified and interpreted correctly by anyone, anytime.
Installthe new method as a standard practice, and
Maintainthe standard practice by regular routine checkups.

The same procedure is identical to that specified in Chapter 22 and more or less the same as plan-do-study-act, developed by Shewhart and Deming and discussed in more detail in later chapters.

11.4.4 Characteristics of Successful Teams

1. Sponsor

2. Team charter

3. Team composition

4. Appropriate leadership

5. Balanced participation

6. Cohesiveness

7. Clear cut ideas

8. Training

9. Rules of functioning and conduct of the teams

10. Accountability

11. Well-designed decision processes

12. Resources

13. Open communications

14. Effective problem-solving and

15. Trust, not only the mutual trust among the team members, but also from the top management which sponsors this, as well as by the workforce which implements the decisions.

11.4.5 Some Nicknames for the Nonconducive Team Members

Quite often we come across some team members who are not conducive to the smooth progress of teamwork. Wikipedia has compared their behavior with those of some animals as follows;

1.The LionKeeps overpowering other members and fights whenever others disagree with their ideas.
2.The GiraffeLooks down on others and the program in general, with an attitude “I am above all this childish nonsense.”
3.The ElephantBlocks the way and prevents others from continuing in a fruitful discussion.
4.The DonkeyVery stubborn and will not change his point of view.
5.The OstrichBuries his head, refuses to face reality, and does not admit that the problem exists.
6.The MonkeyFools around and distracts others from serious discussions.
7.The PeacockAlways shows off, competing for attention.
8.The RhinoSuddenly keeps changing his point of view, upsetting his supporters unnecessarily.
9.The HippoSleeps or dozes all thorough the meeting. Never puts his head up except for a yawn.
10.The FrogCroaks on and on about the same subject in a monotonous voice.
11.The TortoiseIs too slow in his understanding of the discussion points or in putting forward his ideas.
12.The MouseIs too timid to speak on any subject.
13.The CatAlways looks for sympathy, “It is so difficult for me to do this!”
14.The RabbitRuns away or quickly changes the topic as soon a tension or an unpleasant job is sensed.
15.The OwlLooks solemn and pretends to be very wise. Generally talks in long and complicated sentences.

11.5 Empowerment

Empowerment is an environment in which people have the ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and initiate the necessary steps to satisfy the customer requirements, within well-defined boundaries in order to achieve organizational values and goals. It is a philosophy that bestows on the employees the authority and responsibility for making decisions which affect their jobs. It also signifies the process of employee participation in company working practice and organization performance.

As indicated above, the conditions needed to be satisfied for empowerment are:

 The capacity for the employee to make the right decision,

 the commitment to take responsibility, and

 The confidence and trust bestowed upon him by the management.

Since empowerment largely involves people making decisions, reference may be made to Chapter 6, which elaborates on the process of decision-making.

11.5.1 Types of Supervisors as per Harvard Business School Study

A study of first line supervisors’ responses to employee involvement programs by Harvard Business School showed that 72% of the supervisors saw the program as good for the company, 60% saw them as good for the employees, and only 31% saw them as good for themselves. This study also classified the supervisors into five types in this connection:

1. Proponents of Theory X, who think the workers would take advantage of the program,

2. Status seekers, who do not want to relinquish their authority,

3. Skeptics, who question the ability of the organization to change,

4. Equality seekers, who think they too, along with the workers, should be included in the programs, and

5. Deal-makers, who prefer one-to-one interactions with the employees, through which they can strike deals.

11.6 Participative Management

11.6.1 Resistance to Change

This is related to the third basic component of total employee involvement as cited in Section 11.1. The man on the job is the best person to spot and pinpoint areas for improvement, and is also the right person to implement this improvement. Empowering the employee in making the suggestions and implementing after due analysis would make him happier and more responsible and to achieve higher results because the suggestion is his own.

In the day-to-day shop meetings at the factory manager’s level, if the workers or their representatives are invited to participate along with the departmental heads, the employees would feel responsible for the job in view of their participation. This is called participative management. On the other hand, if the management decides to implement certain changes or improvements without consulting the workers or their representatives, there would be a certain amount of resistance from the workers, even though those improvements would ultimately benefit the worker. This is called Resistance to change and is experienced by a majority of the industrial engineers working in an industry. In a majority of the cases where a resistance is encountered to a change, the reason is more psychological than the worker being against the change itself. Hence, the manner in which the implementation is planned and introduced, with due regard to the ego of the concerned worker, and the manner in which he is taken into confidence in assisting the change, and in the process of implementation, is the very key to the success for any continuous improvement project.

The following paragraphs highlight the significance of this factor and how a manager or the supervisor should strive in overcoming this resistance. A case study from the author’s experience in a medium-scale industry during the early 1970s is given at the end of the chapter to illustrate this point.

11.6.2 Types of Changes That Usually Meet Resistance

1. Changes that threaten to lower the prestige of the work of a group or of an individual, like an office clerk being asked to work on the shop floor.

2. Changes that highlight the inefficiency in the present procedures, resisted mostly by the higher-ups.

3. Changes that reduce the authority and scope of decision. If the personnel department is asked to scrutinize or to take control over the constant hiring and firing of the casual labor, the foreman may feel loss of his importance.

4. Changes that interrupt the routine work, such as the re-layout project.

5. Changes of processes where the skilled workers apprehend loss of their jobs or reduction in their earnings.

6. Changes that create fear of loss of employment or reduction in wages, as in unannounced changes in the processes or systems.

7. Changes involving development of skills in new directions.

8. Changes involving transfer to new environments, like moving from a cozy room to large hall, or moving into a new set of workers.

11.6.3 Reasons for Resistance

When viewed from the workers’ point of view, they do have their own valid reasons to resist a change. A few commonly cited reasons put forth by workers or their representatives are cited below:

1. New methods may result in retrenchment, and he may be among those affected.

2. He may not be proficient in the new job, resulting in reduction of wages earned.

3. The experience gained in the old job over years would be reduced to a waste.

4. He has to create a new circle of friends under a new supervisor, which may or may not suit him.

5. Psychological attachment to the place, or machine, or the group with which he has worked for years.

6. Fear of de-recognition caused by insufficient information received by him about the purpose of the change, resulting in distorted rumors.

7. Though he may not be against the change personally, he may be bound by the decision of the union or group to which he belongs.

8. Last, but not the least, his ego might have been hurt for not being consulted before the change. This fact could be understood clearly in Fig. 11.3.

9. Of the above, the last cited reason created a revolution in the management thinking, appreciating the need for involving the workforce, not only in the improvement projects, but also in the day-to-day management, suggestions, etc., which concept is generally known as Employee participation or sometimes Workforce Empowerment.

11.6.4 Some Criticisms Encountered by Industrial Engineers From Higher-Ups

 Why change it? It is still working alright.

 We already thought of it and we know it cannot be done.

 We already tried this and it was a flop.

 We don’t have the time.

 Our place is different.

 Good thought, but not practical.

 Not practical for the operating staff.

 Let us get back to realities.

 Don’t you realize that the present one was developed after so much research and practices, considering all the factors you are pointing out now?

 Who are you to tell me? I know my job.

 Don’t you think we too get ideas?

11.7 Effect of Worker Representation on Productivity

Fig. 11.3 illustrates the effect of worker representation on productivity.

11.8 How to Successfully Implement a Change

In a majority of the cases where a resistance is encountered to a change, the reason is more psychological than the worker being against the change itself. Hence, the manner in which the implementation is planned and conducted, with due regards to the ego of the concerned worker, and the manner in which he is taken into full confidence in assisting the change, and in the process of implementation, is the very key to the success of any continuous improvement project

One of the seminars on participative management summarizes the following tips on how to successfully implement a change.

1. Understand the change itself, its benefits to the worker, its benefits to the company, etc., and enlist them. You personally need to be convinced of these benefits.

2. Forecast the reasons for the possible resistance from the workers’ point of view. Be prepared with your solutions for these factors and other criticisms.

3. Explain to the workers fully and convince them about the benefits of the change for themselves. Allay their fears.

4. Do not forget the channels of authority. First explain to the concerned supervisor or the head of the department.

5. Review the proposal and make a list of the reasons for possible resistance from the worker’s point of view and other possible criticisms from different levels and personnel. Be prepared with your solutions.

6. Listen to their suggestions and make a note of them. Incorporate them where possible.

7. Give words of appreciation of their suggestions.

8. Discuss with them freely and sincerely.

9. Create interest in them by visual aids, manner of speaking, etc.

10. Plan for their training on the new jobs fully and systematically.

11. Keep asking them now and then how they get along with the new job.

12. Commend them, or correct them where necessary.

11.9 Theodore Kinni’s Eight Tips for Achieving Motivated Workforce

1. Know thyself. Make SWOT analysis of yourself with respect to the issue.

2. Know your employee or the workforce, their attitudes background, etc.

3. Establish a positive attitude.

4. Share the goals.

5. Monitor the progress.

6. Develop intersecting work by job rotation, job enlargement, and job enrichment.

7. Communicate effectively.

8. Celebrate success.

11.10 Benefits of Employee Involvement

Besterfield cites the following benefits of employee involvement and participative management:

1. Employees make better decisions using their expert knowledge and skills in the process.

2. Employees are more likely to implement and support decisions if they had a part in making them.

3. Employees are better able to spot and pinpoint areas for improvements.

4. Employees are better able to make immediate corrective action.

5. Employee involvement reduces the labor/management friction by encouraging more effective communication and cooperation.

6. Employee involvement increases the morale by creating a feeling of belonging to the organization.

7. Employees are better able to accept change because they control the work environment.

8. Employees have an increased commitment to unit goals because they are involved.

Peter Grazier puts the following points in favor of total employee involvement.

1. Everyone has something to contribute and will, if the environment is right.

2. The human element performance is more important than the technical element.

3. Most decisions can be significantly improved through collaboration.

4. People need leaders. Good leaders build trust and a higher sense of mission and source of worth.

5. Employee involvement is not a program. It is a corporate philosophy.

6. Continuous improvement is beautifully simple. As improvements begin to flow, confidence will build and the progress will feed on itself.

11.11 Role of Senior Management in Employee Involvement

In Chapter 4, we have seen several types and qualities of senior management. They must commit themselves to the philosophy of TQM. They must understand the present internal culture, environmental features, and plan all the infrastructure that is required to implement TQM culture in their organization by fully involving the employees in all the decision-making. The following are some of the guidelines that the top management must follow for planning the road map.

1. Conduct an assessment of the organization’s existing attitudes, structures, culture, systems, and barriers to the desired implementation of the TQM process, or any other change.

2. Develop a vision statement for the future.

3. Develop a formal management policy in the development of employee involvement strategy.

4. Inculcate a team spirit both in the employees and the management staff.

5. Publish the employee involvement policy, the goals, and targets.

6. Communicate the above to employees at all organizational levels.

7. Implement the strategies that will fit the abilities of the employees and management to adapt them.

8. Provide facilitators, advisors, and other change agents.

9. Train employees in the new methods, problem solving, group skills, and in decision-making.

10. Evaluate the employee involvement strategies to ensure that in the program, the proposed methods are implemented as intended, monitor the progress, and that the method is producing the desired results.

This can be represented by Fig. 11.4.

11.12 Recognition and Rewards

This is the fourth component of employee involvement. Recognition is a process by which management acknowledges the good performance of an employee. This is based on the esteem need as indicated by Maslow in his hierarchy of human needs. We have already seen that recognition and satisfying the esteem need of the worker is a major contributor for his motivation. This sustains the employee’s interest and commitment in moving towards the common goal. Employee recognition is not just a nice thing to do for people. Employee recognition is a communication tool that reinforces and rewards the most important outcomes people create for your business. The rewards can either be intrinsic like the nonmonetary rewards, and extrinsic like monetary rewards.

11.13 Forms of Recognition and Rewards

The following can be some of the methods of recognition and rewards.

A. Intrinsic Rewards:

 Verbal appreciation: Supervisors can give on-the-spot appreciation in front of other employees.

 Certificates or plaques.

 Letters of appreciation from the Chief Executive Officer, Chairman, etc.

 Displaying their names on the notice boards.

 Other nonmonetary rewards, such as inviting them for a get-together or family dinner.

 Group incentives like departmental picnics, or departmental annual holidays. Khatau Mills has the convention of annually sending their senior officers, along with their families to holiday resorts like Goa, Mahabaleshwar, etc.

B. Extrinsic Rewards:

 Profit-sharing

 Gain-sharing

 Employment security

Benefits of recognition and rewarding systems:

 Monetary rewards like cash rewards for the suggestion schemes

 Job-related incentives, such as double increments, promotions, cash bonus, gain-sharing, etc.

 Productivity based incentives.

 Quality based performance bonuses

11.14 Criteria for Effective Recognition of Employees

The website humanresources.about.com/od/rewardrecognition/a/recognition_tip.cites the following tips for effective recognition of employees for establishing criteria for what performance or contribution constitutes rewardable behavior or actions.

 All employees must be eligible for the recognition.

 The recognition must supply the employer and employee with specific information about what behaviors or actions are being rewarded and recognized.

 Anyone who then performs at the level or standard stated in the criteria receives the reward.

 The recognition should occur as close to the performance of the actions as possible, so the recognition reinforces behavior the employer wants to encourage.

11.15 Advantages of Effective Rewarding Systems

1. It is an effective employee motivator by letting them know that they are valuable members of the company.

2. Better and committed involvement of the employees can be ensured.

3. It also motivates other employees.

4. It creates a healthy competition among individuals and teams.

5. It increases morale in the company.

6. It provides a specific goal to the employees.

7. It provides the organization an opportunity to thank high achieving people.

8. It gives publicity to the company that they value quality and productivity.

11.16 Conclusion

As Taoism, the Chinese philosophy says that the real value of employee empowerment lies in not unleashing the power, but in sharing the power. It professes giving employees a certain degree of autonomy and responsibility for decision-making regarding their specific organizational tasks, which are better understood by them than by their superiors.

Appendix A Case Study on Worker Involvement

The Works Manager of M/s XYZ & Co, a medium-scale industry manufacturing engineering products called the supervisors of all the departments for a meeting. An MBA from Harvard University has a high reputation of being a dynamic leader, having experience in industrial engineering. He opened the meeting with an appreciation for the good performance the company made in the past 2 years and commended the role of the workmen, especially the supervisors, in achieving this high performance level.

He recalled how the company started its operation 10 years back in an old barracks type of building. The office was located in the front room, while each of the seven rooms housed stores and machinery, as and when they are procured. A small extension for this building was made with a semiopen asbestos roofing, housing maintenance, fettling, bench drills, etc., a large backyard is left unused.

Due to the good performance of the company, expansion of activities became inevitable and it was contemplated to extend the building to cover a major portion of the backyard. The existing layout had obvious inefficiencies causing obstructions to the free movement of the men and materials. A comprehensive study was made with specific reference to the movement. The improved layout, the works manager explained, took care of all these factors providing more facilities for the workmen. The basic changes, according to him were insignificant, except movement of certain machinery, removal of certain partition walls, and relocation of the workmen.

All the supervisors stared blankly at the works Manager and showed no signs of happiness. They were apprehensive that their workmen would resist the change.

In the existing system of working, senior workers of the machine shop were closeted in a cozy room, but would have to be shifted to a large hall, together with other semiskilled operatives working on smaller machines. In the assembly shop instead of clustering around a larger work table in quiet conditions and chit-chatting, they would now have to work in a larger hall with individual smaller tables, one behind the other.

All this meant too much for senior workers, since skilled workers are equated with semiskilled workers and are made to move out of the cozy rooms. They decided to approach their union, which in turn could force the management not to undertake the re-layout work.

The above is just one case in point to illustrate how resistance to changes occur. We all know that most of the management techniques to raise productivity aim at methods improvement or systems improvement. But the very word improvement is linked with the action of change and the consequent resistance to change is more psychological than the workers being against the change itself. While in a majority of cases, the resistance is from the operatives, many times the resistance comes from personnel higher up in the ladder, even from the departmental heads.

A sincere attempt to understand the possible motive for such a resistance, as well as the past history responsible for the development of such a resistance, together with complete analysis of the situation, would possibly enable the management to plan a rational course of action for successful implementation of the change.

Quiz: How Would You Have Handled the Situation?

The layout improvement project sited in our case study was planned very meticulously, providing several new facilities to the workers, elimination of crowded work areas, etc. This project was worker-friendly and was expected to be implemented without resistance. But it was not so. If you are the Works Manager, how would you have handled this situation?

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Further Reading

[1] Besterfield D.H., et al. Total quality management. Upper Saddle River, NJ: Prentice Hall; 2005.

[2] James E., Williams L. The management and control of quality. Mason, OH: Thompson’s SW; 2005.

[3] Ireson W.G., Grant E.L. Handbook of industrial engineering and management. Englewood Cliffs, NJ: Prentice Hall; 1971.

[4] Fegenbaun A.V. Total quality control. 3rd ed. New York, NY: McGraw Hill; 1983.

[5] Maynard H.B. Industrial engineering handbook. 3rd ed. New York: McGraw Hill; 1971.

[6] Snape E., et al. Managing human resources for TQM—possibilities and pitfalls. Employee Relat. 1995;17(3):42–51.

[7] Surman D., et al. Integrating TQM and HRM. Employee Relat. 1995;17(3):75–86.

[8] Rubinsteen S.P. QC circles and U.S. participative management. In: ASQC technical conference transactions, Washington, DC; 1972:391–396.

[9] Scholtels P.R., et al. The team handbook—how to use teams to improve quality. Madison, WI: Joint Associates; 1988.

[10] Hackman J.R., Oldham G.R. Work redesign. Reading, MA: Addison-Wesley; 1980.

[11] Kiran D.R. Resistance to change. Excell Superv. 1985;3: [NPC].

[12] Kiran DR. Participative management. Manufacturing Technology & Management (of IIPE) 1988.

[13] Drucker P. Management challenges for the 21st century. New York, NY: Harpers Business Publ; 1989.

[14] Juran J.M. Juran on leadership for quality, an extensive handbook. New York, NY: The Free Press; 1989.

[15] Joseph P., Furr D. Total quality in managing human resources. Delray Beach, FL: St. Louis Press; 1995.

[16] Kondo Y. Human motivation a key factor for management. Tokyo: 3A Corporation; 1989.

[17] Filbeck G., Preece D. Fortune’s best 100 companies to work for in America: do they work for shareholders? J Bus Finan Account. 2003;30:771–797.

[18] How companies satisfy employees. Fortune 2003. www.fortune.com.

[19] www.acas.org.uk.

[20] humanresouces.about.com.

[21] www.isynergy.idoscovery.com.

[22] www.crativeevents.ie.

[23] www.timesjobs.com.

[24] www.masterstudies.net.

[25] www.harrisonassessments.com.

[26] www.industryweek.com.

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