TOPIC 3 : Employee Representation and Forms of Employee Participation
Employee representation is the ability of workers to exercise a "voice" in business
decisions of the organization/company. Employee representation can also be defined
as an employee’s right to seek a union or individual to represent them for the purpose
of negotiating with management on issues such as wages, hours, benefits and working
conditions. In the workplace, workers may be represented by a trade union or other
representatives in the following cases on:
Disciplinary and grievance matters
Works councils or other consultative bodies
Collective bargaining of terms and conditions
When making workforce agreements
Joint working groups
Working practices
Conduct at work
Health and safety.
Employee’ participation encompass various forms of workers’ involvement in
decision making, usually at the enterprise level. The types of workers’ participation
range from informal individual employee suggestion schemes to co-determination of
certain matters by workers’ representatives together with management, self-
management by workers, joint safety and health committees etc. Workers may
participate in decision making either directly or indirectly through their
representatives like trade unions or elected employee representatives. Direct
participation may be on an individual basis for example, through suggestion schemes
or “enriched” work. It may also be on a group basis for example, in quality circles or
similar small-group activities.
NB: Participation of workers in decision-making process has resulted in successful
value creation in many organizations. Though the extent to which employees should
participate in organizational decision making is still a matter of debate. Some say that
workers’ union should participate with management as equal partners while some
believe in restricted or bounded participation, that is, participation of employees or
workers to a limited extent. However, there are a number of ways through which
employees can participate in decision-making process of any organization.
Forms of Employee Participation
i. 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.
ii. Participation through Ownership: The other way of ensuring workers’
participation in organizational decision making is making them shareholders of
the company. Inducing them to buy equity shares, advancing loans, giving
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