Management Benchmark Study-Book Summary Chapter 10-Literature, Summaries of Benchmarking

Download Management Benchmark Study-Book Summary Chapter 10-Literature and more Summaries Benchmarking in PDF only on Docsity! Ch 10 Participative Management 06.08.02.doc 06.08.02 Chapter 10. Participative Management and Employee and Stakeholder Involvement1 By Kristi M. Branch Participative management addresses the relationship between the organization and its workers and stakeholders. It addresses fundamental issues of governance within organizations and the role of employees and external stakeholders in all levels of organizational decision making. In addition to philosophical issues of governance and the appropriate relationship between workers and their employers, the literature on participative management can help managers dealing with the fundamental challenges facing public science managers in today’s dynamic and competitive environment: maintaining high levels of effectiveness, productivity, innovativeness, and worker motivation in an increasingly dynamic, competitive environment. Participative management is recognized as particularly pertinent to organizations dealing with complex, knowledge-based problems. Extensive research conducted as early as the 1950s and 1960s demonstrated that participative management is particularly well suited to science-based organizations whose key staff are noted for their creativity, intrinsic motivation for work that interests them, stronger affiliation with their discipline than their organization, and sensitivity to directive management (Likert 1969; Marcson 1960; Siepert 1964; Macy 1965; Steele 1969). The interdependence of scientific research, and hence of scientific organizations, requires participation at multiple levels. New requirements to involve external stakeholders in policy-setting and planning decisions, and to address concerns about the public acceptability of research programs place additional demands on the skills and capabilities of both managers and staff. One of the main social and organizational utilities of participation is that it offers the possibility of resolving contradictory interests through individual negotiation and/or collective bargaining rather than imposition of authority (Bolle de Bal 1992a). Overview Since its origins with Elton Mayo’s The Human Problems of a Industrial Civilization (1933) and Kurt Lewin’s “Frontiers in Group Dynamics” (1947), a large and diverse literature has been assembled on participative management, which includes employee involvement, industrial democracy, and stakeholder involvement. Interest in participative management has been persistent during this period, with periodic surges corresponding to the social, political, and economic issues of chronically low productivity in the 1960s and 1970s, and international challenges to U.S. industry and product quality in the 1980s and 1990s when worker motivation, productivity and innovativeness became priority issues. Recently, the focus has been on the relationship between participative management and the newer, organic and networked organizational forms, dramatically improved information and communication technology, and greater citizen involvement in organizational decision making. The literature reflects a growing recognition among U.S. academics and managers that a high productivity/high wage economy requires new labor-management relationships, including ways to share gains and organize work that more fully develop and utilize the skills, knowledge, and motivation of the workforce 1 Related chapters include: Science Policy; Strategy; Change Management; Teams and Project- and Program-Based Organizations; Organizational Alliances, Partnerships, and Networks; Organizational Culture; Organizational Communication; Innovation. Ch 10 Participative Management 06.08.02.doc 2 06.08.02 (Commission on the Future of Worker-Management Relations 1995:38). Indeed, participative management is increasingly seen as a feasible system of governance for these organizations (Lawler 1996). The literature reflects a wide and diverse research orientation. Social philosophy and organizational theory, human development, management practices, small-group processes, and leadership perspectives are all represented. It is enriched with a significant comparative component: interest in participative management and industrial democracy has also been high in Europe and the Scandinavian countries. This provides a useful check on the ethnocentrism that can occur when the entire literature shares a similar cultural or geopolitical context. Unlike many aspects of the organizational effectiveness and management literature, both public and private sector organizations have been subject to investigation regarding participative management and employee involvement, and there have been some instructive time-series studies on the extent of adoption and the organizational consequences of participative management practices (Lawler et al. 1986, 1992, 1998, 2001). In addition, there is a strong body of research on the relationships among aspects of organizational design, management practices, and worker characteristics pertinent to participative management and employee involvement. In keeping with the general problem-driven nature of the organizational effectiveness literature as a whole, the literature on participative management has tended to focus on production-oriented or service-providing organizations where issues of worker motivation and satisfaction, product and service quality and productivity were most acute. However, research on the management of science has included attention to the pertinence of participative management for both public and private research organizations. The literature on external stakeholder or citizen participation, which has also included some specific attention to science-based organizations, is essentially separate from that on participative management and employee involvement. The Organizational Context: Why The Interest in Participative Management Now? Competitive Pressure The literature on participative management and employee involvement addresses the interactive relationship between the broader socio-political system and the workplace, in both empirical and philosophical or normative terms, and then tiers that examination down to look at the relationships between organizational design, managerial approach, workplace conditions, job design, pay systems, worker and manager characteristics, organizational performance, and worker and manager motivation and satisfaction. As a consequence, the literature spans discussions of social theory, organizational theory, human relations and organizational psychology, and management strategies and approach. It draws upon a variety of theoretical frameworks and models about the purposes and mechanisms for achieving participation and the impact of participation on the organization and its members. A key factor in the interest in participative management was the realization, which really struck home during the 1980s, that better management practices -- superior quality management systems, better employee relations, integrated design and production teams -- could provide critical competitive advantages to public and private sector organizations (Lawler 1996). During this same period, heightened issues about the societal accountability of organizations also occupied management attention (Collins 1997). As a result, since the 1980s there has been substantial expansion in the number and variety of employee participation efforts and initiatives Ch 10 Participative Management 06.08.02.doc 5 06.08.02 benefit of participatory restructuring of the workplace, given the central role it plays in the lives of most ordinary people (Pateman 1970). ♦ The Industrial Relations Approach, which is inspired by democratic goals (participation is not only a means to an end in itself but also a way to create a strongly democratic society, characterized by active participative citizens). This approach reflects the importance of the external environment to the organization (not highly recognized in bureaucratic, hierarchical organization design, but more widely recognized in organic, open-system designs). Participation in the workplace is seen as contributing to an effective and just society. The workplace is seen as a point of leverage from which to achieve a more egalitarian redistribution of power, leading to a greater democratization of the entire political process (Emery and Thorsrud 1969; Bachrach and Botwinick 1992; Pateman 1970; Matejko 1986). ♦ The Political Approach, which is inspired by revolutionary goals (participation as a means to change the overall structure of ownership to a collective base and to educate workers to class consciousness). The role of organized labor is addressed in this approach, with Bachrach and Botwinick (1992) noting that worker participation in postwar U.S. is substantially less developed and widespread than in Europe, a factor attributed to the weakness of the trade union movement in the U.S. and the absence of enabling legislation such as is present in Europe. Advancement toward greater worker participation is seen as very dependent upon a strong labor movement. ♦ The Psycho-Sociological or Anthropological Approach, which is inspired by synthetic, multidimensional goals (participation as a way of acculturation, of pushing workers to internalize the economic norms of the organization) and emphasizes the fundamental aspects of human nature and how to get the best out of workers. It emphasizes the fundamental social interactions in the workplace and the role of participation in addressing issues of resistance, motivation, and engagement (Lewin 1947; Coch and French 1949; Bolle De Bal 1992a and b). This approach draws a clear contrast with traditional Taylorian and bureaucratic models, which attempt to exclude subjectivity and creativity. In this approach, subjectivity and creativity are integrated into the enterprise culture. It should be noted that not everyone subscribes to this positive view of participatory democracy or to the benefits of direct participation in the workplace. Unions, for example, argue that participative processes are actually detrimental to the welfare of workers, enabling management to capture the knowledge of workers and circumvent the protections provided by collective representation (Fantasia et al. 1988; Bolle de Bal (1992b), reflecting the generally more critical European perspective, notes that participation in the workplace has features that are not uniformly positive for all interest groups. Expected Benefits As literature on participative management and employee involvement accumulated, a wide range of benefits was elaborated, and organizations were encouraged to adopt a variety of participation strategies, and to cultivate a culture of participation (Denison 1990). This enthusiasm undoubtedly influenced organizational behavior, at least to some degree. Kanter (1989; 1983), for example, pointed out that a participatory work environment is theoretically more effective at enhancing innovations than traditional bureaucratic structures because it promotes the sharing of product knowledge between managers and workers, who are closest to the products being made and work being done and therefore more likely to develop strategies and suggestions for better Ch 10 Participative Management 06.08.02.doc 6 06.08.02 quality items, and Markowitz (1996) asserted that “giving employees decision-making power boosts their morale and commitment to the organization, which aids productivity…. everyone benefits: businesses accrue higher profits and stability because they are more secure in their industry niche and workers are more fulfilled and attached to the companies because they have a voice in decision-making.” Denison (1990) provides empirical evidence that higher levels of employee participation are correlated with better organizational performance. The literature reveals its management orientation in these discussions – benefits are almost always framed from the perspective of the firm. In this regard, Lawler’s (1990:38-40) summary of expected benefits reflects much of the U.S. literature, although unlike many others, he also includes a summary of potential negative consequences. The expected benefits listed are: ♦ Improved, more innovative and efficient work methods and procedures (less resistance to new methods may result, and the problem-solving process may produce innovations) ♦ Better communication between management and workers and across work units ♦ Attraction and retention of employees (improvement results from increased satisfaction and involvement) ♦ Reduced tardiness, turnover, and absenteeism ♦ Greater staffing flexibility (increased flexibility results from cross-training and teamwork) ♦ Increased service and product quality (higher motivation and better methods increase quality) ♦ Higher productivity and output (higher motivation and better methods increase the rate of output) ♦ Reduced staff support and supervision requirements (more “self-management” and broader skills reduce the needs for staff support and supervision) ♦ More effective resolution of conflict and reduced number of grievances (better communication and an improved union-management relationship reduce the number of grievances) ♦ Better decisions (better input and decision-making processes improve the quality of decisions) ♦ Expansion of staff skills (problem-solving as well as technical skills are developed) ♦ Improved morale and job satisfaction. And the potential negative consequences are identified as: ♦ Salary and training costs (developing new skills and responsibilities for lower-level participants results in increased salaries and additional training) ♦ Support personnel (if the new program creates a new structure that needs support and management, support personnel must increase) ♦ Expectations for organizational change and personal growth and development opportunities (any program that talks about participation increases expectations for organizational change and personal growth, which, if it is limited or fails, results in dissatisfaction and cynicism) ♦ Resistance by middle management and/or by staff support groups (if they are not positively affected by the program, they may resist it) ♦ Lost time (participation takes time and can slow decision making because a number of people have to understand and accept the decision) Ch 10 Participative Management 06.08.02.doc 7 06.08.02 In 1993, Lawler (1993:174-177) emphasized the strategic benefits of participative management, arguing that decisions could be made more rapidly and flexibly when power is moved to the lowest possible level and that workers, especially knowledge workers, were empowered and motivated by these changes. Overhead costs can be greatly reduced, increasing the organization’s competitive advantage, and better use can be made of capital-intensive technologies by improved problem solving and adaptive behavior. Appropriate for a discussion of participation and involvement, Bolle de Bal (1992a) points out that those at different positions in the organization have different interests, and hence different perspectives on the benefits and costs of providing direct participation mechanisms for employees. His summary of the pros and cons of direct participation from the perspective of employers, workers, and union representative is shown in Table 2. Table 2. The Pros and Cons of Direct Participation From Different Perspectives2 Function Employer Pro Employer Con Worker Pro Worker Con Union Pro Worker Con Ideological Work humanization; worker integration; union weakening Criticism of managerial authority or capitalist property Recognition, achievement, promotion Manipulation, managerial reassessment of influence Exercise counter- power Paternalism, manipulation, atomization, individual- ization, exclusion Economic Improvement of work force and management efficiency Cost Profit- sharing, acquisition, use of skills Cost, time, energy Exercise counter- power Paternalism, manipulation, atomization, individual- ization, exclusion Psycho- logical Motivation, stress reduction Tensions and frustrations Job enrichment, stress reduction Additional responsibil- ities, loss of freedom Exercise counter- power Paternalism, manipulation, atomization, individual- ization, exclusion Organiza- tional De-bureauc- ratization, modernization, decision emergence, training Bureaucracy, slowness, disorgani- zation Decentral- ization, delegation Exercise counter- power Paternalism, manipulation, atomization, individual- ization, exclusion Socio- logical Social regulation, cooperation, control Middle management frustration, union opposition Integration Alienation Exercise counter- power Paternalism, manipulation, atomization, individual- ization, exclusion Source: Bolle de Bal (1992:603-610) 2 For comparison, he also summarizes the pros and cons of indirect participation (i.e., representation) for the employer, worker, and union. Ch 10 Participative Management 06.08.02.doc 10 06.08.02 Lawler (1993:177), McLagan and Nell (1995:44), Cotton (1993), LaGrossa (1998), Landsdale (2000), and Plas and Lewis (2001) characterize participative organizations, and the attributes particularly important in leveraging transition to a participative system, in the terms of the following organizational features: ♦ Organization and work design (teams, enriched jobs, flat lean structure, product/service/customer-based activities; task forces, diagonal slice policy groups). Structures express the philosophy of governance of an organization. They influence relationships. Participative structures have two basic building blocks: teams and value- adding work streams. ♦ Physical layout and design (egalitarian space, layout that accommodates a changing team structure, meeting areas, co-location of business units). Physical space affects relationships and hence information exchange and teamwork. ♦ Information systems (two-way communication, local ownership, performance orientation, human system orientation). Information is power. Those who do not have information or the ability to use it to influence decisions are disempowered. New information technology has increased the amount of participation possible. Controls provide the criteria and warning systems that establish replicable processes, create stability, and prevent anarchy. Participation in the establishment of controls promotes commitment and accountability. ♦ Managerial role, style, and processes (leadership, vision, empowerment, enabling, participation). Participative management requires leadership that reflects system thinking,that motivates and does not depend on superiority and subordination for its influence but respects employees and encourages them to take the initiative and seek new responsibilities and solutions. Management processes are powerful determinants of organizational culture. If strategy, plans, budgets, goals, decisions, and feedback remain authoritarian, the organization’s culture can not be participative. ♦ Reward system (individualized rewards, performance based rewards, egalitarian rewards, growth-oriented rewards, open and participative administration). Rewards are a tangible signal of what is important. They influence relationships and motivation. ♦ Training and development (lifetime learning, economic literacy, teamwork, personal growth, understanding of the business). Everyone needs the skills and abilities to do their job and to participate effectively. Training and development are essential to build the competencies needed by the organization. ♦ Staffing (careful selection, mutual commitment, support of the culture, personal growth, understanding of the business). Competencies and relationships are the building blocks of the new governance. A learning oriented workforce, who can and are motivated to learn new skills and adopt new perspectives. Recognition that no one can know everything. In science-based organizations, where professional standards provide the dominant guide for behavior, selection of staff who are adequately trained and socialized into the normative system of their discipline is particularly important (Friedson and Rhea 1963). ♦ Personnel policies (participative design and administration, individual choices, encouragement of social interaction, development of orientation, support of the family). These show a commitment to meet the needs of those who actually design, produce, and market the organization’s product. ♦ Culture and values (empowerment, personal accountability, open access to information, focus on the customer, commitment to continuous improvement, teamwork). Values determine the nature of governance. Authoritarian values create hierarchies, disempower Ch 10 Participative Management 06.08.02.doc 11 06.08.02 people, create rigid control mechanisms, restrict access to information, and treat people as subordinates. Participative values invalidate such practices. Davis (1976:7) identifies four models of organizational behavior that inform the discussion of participative management: autocratic, custodial, supportive, and collegial. In a collegial model, the managerial orientation is toward integration and teamwork and the employee orientation is toward responsibility and self-discipline. Jain (1992) provides a complementary representation of the extent of employee influence in the management of the organization, as shown in Table 3. Table 3. Extent of Employee Influence in the Management of the Enterprise Provision of Information Advisory Input into Decisions Negotiating Rights Co-Determination Corporate Observer status at board level Minority board level representation Negotiating rights over corporate- wide policies Parity representation at board level Establishment/ Plant Work council’s right to receive information Management’s obligation to consult work councils on certain issues Collective bargaining in several countries Co-determination right of works councils over plant-level issues Workplace Company newsletters, suggestion boxes, bulletin boards Quality circles, labour management committees (bodies to discuss ways to improve efficiency and productivity Workplace bargaining by union representatives (eg over pace of work etc) Workplace health and safety committee right to stop production where danger exists Source: Jain, Hem C. 1992. Canada. In Concise Encyclopedia of Participation and Co- Management. Edited by György Széll. Pp. 88-98. New York: Walter de Gruyter. Participative Management and Employee and Stakeholder Involvement Initiatives and Strategies A Wide Range of Mechanisms and Strategies A number of specific mechanisms, programs, and strategies have been developed to provide participation opportunities for employees, typically in traditional bureaucratic hierarchical organizations. Initially, they were generally introduced singly or in groups, often in a small section of the organization. Recently, greater attention has been given to the interactive nature of these mechanisms and the need to consider the introduction of participative mechanisms in a more systemic way. The most common participative mechanisms and strategies include: ♦ Democratic management ♦ Information sharing forums ♦ Joint labor-management training programs ♦ Safety and health committees ♦ Quality circles ♦ Quality of work life programs Ch 10 Participative Management 06.08.02.doc 12 06.08.02 ♦ Employee participation teams other than quality circles ♦ Total quality management teams ♦ Team based work structures with a variety of responsibilities ♦ Gain-sharing and profit-sharing plans ♦ Employee ownership programs ♦ Worker representation on corporate boards of directors. ♦ Survey feedback ♦ Job enrichment or redesign initiatives ♦ Union-management quality of work life committees ♦ Mini-enterprise units ♦ Self-managing work teams (autonomous work groups, semiautonomous work groups, self-regulating work teams, or even simply work teams) ♦ Site-based management. ♦ Knowledge management programs ♦ Business process reengineering (some don’t consider this a participative mechanism) ♦ Open-book management ♦ Theory Z. Categorizing and Describing Participative Management and Involvement Strategies and Mechanisms Many different frameworks for categorizing and describing participative management and employee and stakeholder involvement strategies and mechanisms have been proposed. Lawler (1988:197-201) distinguishes three involvement-oriented approaches to management that have been widely referenced in the literature. The three approaches differ in their histories and approach to the four strategy dimensions identified above (information sharing, knowledge development, reward systems, power sharing). Parallel suggestion involvement is an approach that solicits employee involvement through mechanisms such as formal suggestion programs, often supplemented with a supportive reward system such as gainsharing, in which the provider of the suggestion receives a share of the resulting monetary benefits. Quality circles are a popular example of a parallel suggestion approach. Indicative of this approach, quality circles use groups especially constituted to generate suggestions, frequently after receiving considerable training. As with other manifestations of this approach, participants are taken out of their regular organizational position and put in a separate new structure that operates parallel to the “regular” organization. The participants in these parallel structures are usually empowered only to make suggestions, not to decide on or implement their recommendations: the authority for establishing and framing the suggestion process and for acting on the recommendations is retained by management. Consequently, parallel suggestion involvement is considered a top-down approach. Eaton et al. (1997) calls this type of approach off-line participation through parallel structures. Bachrach and Botwinick (1992) provide an extensive discussion of another variant of this approach, quality of work life programs, which were first initiated in the U.S. in the late 1960s to combat low productivity, wildcat strikes, absenteeism, sabotage, tardiness, high turnover, an other labor problems. Ch 10 Participative Management 06.08.02.doc 15 06.08.02 ♦ Influence, control, and power, a central concept in participation (Lawler 1988; Ledford 1993; Jain 1992; Bloom 2000; Markowitz 1996; Parker and Slaughter 1988; Saiken et al. 1986) ♦ Alienation, motivation, and productivity (Patchen 1976; Plas 1996; Lewin, Lippit and White 1939; Hackman and Lawler 1971; Case 1998; Markowitz 1996; Pateman 1970; Lehrer 1982; Lawler et al. 2001; Vroom 1984) ♦ Resistance to change (Schwochau et al. 1997; Bloom 2000; Collins 1997) ♦ Worker stress (Lichtenstein and Harris 1993; Parker and Slaughter 1998; Lawler 1996) ♦ Unions (Bachrach and Botwinick 1992; Bolle De Bal 1992a,b; Fantasia et al. 1988; Lichtenstein and Harris 1993; Markowitz 1996; Kelley and Harrison 1990; Jain 1992; Commission on the Future of Worker-Management Relations 1995; Parker 1993; Eaton et al. 1997; Juravich et al. 1993; Rinehart 1984) ♦ Access to information (Lawler 1996; McLagan and Nel 1995; Lewin 1988) ♦ Bureaucracy (Kelley (2000; Bartlett and Ghoshal 1991; Carroll 1993) ♦ Who participates (Seiling 1997; Bloom 2000; Eaton et al. 1997) ♦ Issues of impact, including adoption rates and survival rates (Collins 1996; Lawler et al. 2001; Lawler et al. 1998; Lawler et al. 1992; Schwochau et al. 1997; Leana and Florkowski 1992; Dachler and Wilpert 1978, Locke and Schweiger 1979; Miller and Monge 1986; McLagan and Nel 1995; Drehmer et al. 2000; Commission on the Future of Worker-Management Relations 1995; Coch and French 1948; Ben-Ner and Jones 1995; Coye and Belohlav l995; Cotton et al 1988; Collins 1995). External Stakeholder Involvement The literature on organizational effectiveness and participative management has very little to say about involving external stakeholders, aside from noting that many of the collaborative methods can be used to build lateral linkages with suppliers, customers, and partners (see the chapter on organizational collaborations, partnerships, and networks) (Ackoff 1999) and that consideration of external stakeholders is important in strategy formulation (Harrision and St. John 1998; Freeman 1984; Mason and Mitroff 1981). In the participative management literature, the most common link to stakeholder involvement is made through the concept of industrial democracy, and the social responsibility of firms and organizations. The humanistic values that corporate responsibility, responsiveness, and rectitude (CSR3) theorists would like to see embedded in business organizations also constitute the foundation of participatory management theory. Collins (1996) investigated the relationship between an organization’s provision of employee participation mechanisms (internal democratic processes) and improved corporate social performance. He looked at documented changes in stakeholder policies and outcomes at four companies operating under a Scanlon-type gainsharing system for 4-6 years. He concluded that the firms’ gainsharing and collaborative problem-solving mechanisms did provide benefits to a range of stakeholders, benefiting owners in terms of cost savings, customers in terms of improved product quality and service, suppliers in terms of product feedback, and production employees in terms of improved health and safety conditions plus other favorable changes in policies and outcomes. achievement so often unfulfilled that we exhibit what seems to be a developmental disability in this area of social competence.” (Larson and LaFasto 1989) Ch 10 Participative Management 06.08.02.doc 16 06.08.02 Freeman’s (1984) Strategic Management: A Stakeholder Approach, Savage et al.’s (1991) “Strategies for Assessing and Managing Organizational Stakeholders,” Carroll’s (1993) Business and Society, and Harrison and St. John’s (1998) Strategic Management of Organizations and Stakeholders: Concepts represent the few works on stakeholder involvement found within the business management/organizational effectiveness literature. All these works reflect a singularly corporate point of view, clearly focusing on “managing” stakeholders rather than collaborating or engaging with them, or dealing cooperatively to address shared issues and concerns, which is the focus of the literature on public involvement and public participation (which itself tends to say almost nothing about the management or organizational design issues associated with these types of engagements). Freeman (1984) and Harrison and St. John (1998) reflect an appreciation that the expectations of an organization’s stakeholders are important, have the ability to affect the organization’s strategy and success, change over time, and require the attention of management. They emphasize the need for organizations to understand who their stakeholders are (for example by developing stakeholder maps), develop processes for identifying issues created by stakeholders (by conducting environmental scanning and other information gathering processes), and develop the skills to interact effectively with their stakeholders. Carroll (1993) addresses the dual themes of business ethics and stakeholder management within the framework of social responsibility by business, while recognizing the extent of business’ power in society. For Carroll, stakeholder management requires managers to identify the various groups or individuals who have a stake in the firm or its actions and decisions and “incorporate these stakeholders’ concerns into the firm’s strategic plans.” He distinguishes between social responsibility and social responsiveness, which he describes as: ♦ Reliability of company executives—the extent to which they stand by their commitments ♦ Attentiveness of company executives—the extent to which they listen and are receptive to information flowing from outside the company ♦ Preparedness of company executives—the extent to which they are aware of potential public policy issues ♦ Credibility of company statements—the extent to which you can believe information communicated by the companies ♦ Accessibility of company executives—the extent to which they are available to you for responses and discussions ♦ Perceived legitimacy of outsiders—the extent to which company executives respect the purpose of outside critics ♦ Communication with its publics—the extent to which the company communicates its programs and interests to its various publics ♦ Clarity of company interests—the extent to which the company clearly defines its own interests in responding to public issues. Based on the work of Robert Miles (1987), Carroll defines overall corporate responsiveness as “the extent to which the company has an effective overall process for learning about and adapting to changing societal norms, pressures, and public issues.” Savage et al. (1991:65) draws on the concept of primary and secondary stakeholders that is represented in the public participation literature, identifying primary stakeholders as owners, suppliers, customers, and employees and secondary stakeholders as local community groups, special interest groups, consumer groups, environmental groups, civil liberties union, society-at- Ch 10 Participative Management 06.08.02.doc 17 06.08.02 large, media. They then represent a “strategic view of stakeholders” that distinguishes stakeholders who pose a potential threat to the organization from those who present potential cooperation, as shown in Figure 1 Stakeholder’s Potential for Threat to Organization High Low High Stakeholder Type 4 Mixed Blessing Strategy: Collaborative Stakeholder Type 1 Supportive Strategy: Involve Stakeholder’s Potential for Cooperation with Organization Low Stakeholder Type 3 Nonsupportive Strategy: Defend Stakeholder Type 2 Marginal Strategy: Monitor Source: Grant T. Savage, Timothy W. Nix, Carlton J. Whitehead, and John D. Blair. 1991. Strategies for Assessing and Managing Organizational Stakeholders. Academy of Management Executive May:65. Figure 1. A Strategic View of Stakeholders and Stakeholder Involvement Strategies Harrison and St. John (1998) categorize stakeholders into those within the organization (owners/board of directors, managers, and employees) and within the operating environment (customers, suppliers, government agencies and administrators, unions, competitors, financial intermediaries, local communities, and activist groups), all operating within the broader environment subject to sociocultural, global economic, and global political/legal forces and technological change. They emphasize the importance of identifying, understanding, building relationships with, and satisfying its key stakeholders, and taking these stakeholders into account in the formulation of organizational strategy. Bloom (2000) and Thomas (1990) both address the question: Who should be involved in making decisions? Bloom (2000) focuses on the issues of interest and expertise, reflecting the risk-based policy-making approach of the public participation perspective. Bloom (2000) recommends designing a strategy for determining who out of these stakeholders should be involved based upon the following match-up between interest and expertise levels: ♦ Low interest, low expertise —avoid involvement ♦ Low interest, high expertise—consult ♦ High interest, low expertise—rationale is to lower resistance, but need to be careful, and have skilled leadership. Consultative model might be useful so that interested parties have input, but manager makes final decision ♦ High interest, high expertise—involve as early as possible, and given as much freedom as possible to define the problem and set objectives either as a delegated approach or a collaborative approach. Thomas (1990) applies the Vroom and Yetton (1973) model of deciding the degree of group involvement desirable in making decisions. This approach is based on matching attributes of the problem with the expertise of the potentially involved stakeholders in an effort to balance the relative needs for quality and acceptability in a decision. The model (as modified) asks the Ch 10 Participative Management 06.08.02.doc 20 06.08.02 There are many interesting tensions and complementarities between participative management and scientific research at the philosophical, value level, and at the practical and operational level that have not been fully articulated by the research conducted to date. References Ackoff, Russell L. 1999. Re-Creating the Corporation: A Design of Organizations for the 21st Century. New York: Oxford University Press. Ahrweiler, Georg. 1992. Science. In Concise Encyclopedia of Participation and Co- Management. György Széll (ed.). Pp. 715-721. New York: Walter de Gruyter. Applebaum, Eileen, and Rosemary Batt. 1994. The New American Workplace: Transforming Work Systems in the United States. Ithaca, NY: ILR Press. Argyris, Chris. 1957. Personality and Organization. New York: Harper. Bachrach, Peter, and Aryeh Botwinick. 1992. Power and Empowerment: A Radical Theory of Participatory Democracy. Philadelphia: Temple University Press. Bartlett, Christopher A. and Sumantra Ghoshal. 1991. Matrix Management: Not a Structure, a Frame of Mind. In Participative Management. Pp. 23-30. Cambridge: Harvard Review Paperback. Baumgartel, Howard. 1957. Leadership Style as a Variable in Research Administration. Administrative Science Quarterly 2(December):344-360. Baumgartel, Howard. 1956. Leadership, Motivations, and Attitudes in Research Laboratories. Journal of Social Issues 12:24-31. Beckhard, Richard, and Rueben T. Harris. 1987. Organizational Transitions: Managing Complex Change. Reading, MA: Addison-Wesley. Beer, Michael, Russell A. Eisenstat, and Bert Spector. 1990. The Critical Path to Corporate Renewal. Boston: Harvard Business School Press. Bellace, Janice R. 1993. Managing Employee Participation in Decision – Making: An Assessment of National Models. Bulletin of Comparative Labour Relations 27:5-14. Ben-Ner, Avner, and Derek C. Jones. 1995. Employee Participation, Ownership, and Productivity: A Theoretical Perspective. Industrial Relations 34(4):532-54. Bernoux, Philippe. 1992. Quality Circles. In Concise Encyclopedia of Participation and Co- Management. György Széll (ed.). Pp. 687-694. New York: Walter de Gruyter. Biagi, Marco. 1993. Managing Industrial Relations as a Comparative Advantage: From Formalism to Training in Managerial Initiative. Bulletin of Comparative Labour Relations 27:15-23. Blonpain, Roger. 1993. Managerial Initiatives and Rights to Information, Consultation, and Workers’ Participation in the E.C. Countries. Bulletin of Comparative Labour Relations 27:25-41. Bloom, Paula Jorde. 2000. Circle of Influence: Implementing Shared Decision Making and Participative Management. Lake Forest, IL: New Horizons. Ch 10 Participative Management 06.08.02.doc 21 06.08.02 Bolle De Bal, Marcel. 1992a. Participation. In Concise Encyclopedia of Participation and Co- Management. György Széll (ed.). Pp. 603-610. New York: Walter de Gruyter. Bolle De Bal, Marcel. 1992b. Participative Management. In Concise Encyclopedia of Participation and Co-Management. György Széll (ed.). Pp. 611-615. New York: Walter de Gruyter. Bottrup, Pernille. 1998. Organizational Learning- A Way of Putting Democratization and Life Politics on the Working Life Agenda? Paper presented at the ISA XIV World Congress. Montreal, Canada. July 26-August 1. Boyle, Richard J. 1991. Wrestling with Jellyfish. In Participative Management. Pp. 47-63. Cambridge: Harvard Review Paperback. Brown, Warren B., and L.N. Goslin. 1965. R&D Conflict: Manager vs Scientist. MSU Business Topics 13(Summer):71-79. Carroll, Archie B. 1993. Business and Society: Ethics and Stakeholder Management. Cincinnati, OH: South-Western Publishing Co. Cassar, Vincent. 1999. Can Leader Direction and Employee Participation Co-Exist? Journal of Management Psychology 14(1):57-68. Case, John. 1998. The Open-Book Experience: Lessons from Over 100 Companies Who Successfully Transformed Themselves. Reading, MA: Addison-Wesley. Chouraqui, Alain. 1992. Autonomy. In Concise Encyclopedia of Participation and Co- Management. György Széll (ed.). Pp. 61-65. New York: Walter de Gruyter. Coch, L., and J.R.P. French. 1949. Overcoming Resistance. Human Relations 1(4):512-533. Collins, Denis. 1997. The Ethical Superiority and Inevitability of Participatory Management as an Organizational System. Organization Science 8(5 September-October):489-507. Collins, Denis. 1996. How and Why Participatory Management Improves a Company’s Social Performance: Four Gainsharing Case Studies. Business and Society 35(2):176-210. Collins, Denis. 1995. Death of a Gainsharing Plan: Power Politics and Participatory Management. Organizational Dynamics 24(1):23-37. Commission on the Future of Worker-Management Relations. 1995. Employee Participation and Labor-Management Cooperation in American Workplaces. Challenge September- October:38-46. Cotton, J.L., D.A. Vollrath, K.L. Froggatt, M.L. Lengnick-Hall, and K.R. Jennings. 1988. Employee Participation: Diverse Forms and Different Outcomes. Academy of Management Review 13:8-12. Coye, Ray W., and James A. Belohlav. 1995. An Exploratory Analysis of Employee Participation. Group and Organization Management 20(1):4-17. Davis, Keith. 1976. Evolving Models of Organizational Behavior. In Participative Management: Concepts, Theory and Implementation. Ervin Williams (ed.). Pp. 3-14. Atlanta: Georgia State University. Denison, Daniel R. 1990. Corporate Culture and Organizational Effectiveness. New York: John Wiley & Sons. Ch 10 Participative Management 06.08.02.doc 22 06.08.02 Drehmer, David E., James A. Belohlav, and Ray W. Coye. 2000. An Exploration of Employee Participation Using a Scaling Approach. Group and Organization Management 25(4):397- 418. Eaton, Adrienne W., Paula B. Voos, and Dong-One Kim. 1997. Voluntary and Involuntary Aspects of Employee Participation in Decision Making. In The Human Resource Management Handbook Part I. David Lewin, Daniel J.B. Mitchell, and Mahmood A. Zaidi (eds.). Pp. 63-85. Greenwich, CT: JAI Press, Inc. Emery, F.E., and E. Thorsrud. 1969. Industrial Democracy. London: Tavistock. Fantasia, Rick, Dan Clawson, and Gregory Graham. 1988. A Critical View of Worker Participation in American Industry. Work and Organizations 15(4):468-488. Freeman, R. Edward. 1984. Strategic Management: A Stakeholder Approach. Boston: Pitman. Friedson, Eliot and Buford Rhea. 1963. Processes of Control in a Company of Equals. Social Problems 2(Fall):119-131. Galbraith, Jay R. 1995. Designing Organizations: An Executive Briefing on Strategy, Structure and Process. San Francisco: Jossey-Bass Publishers. Galbraith, Jay R. 1994. Competing with Flexible Lateral Organizations. 2nd Edition. Reading, MA: Addison-Wesley Publishing Company, Inc. Galbraith, Jay R., Edward E. Lawler III, and Associates (Eds). 1993. Organizing for the Future: The New Logic for Managing Complex Organizations. San Francisco: Jossey-Bass Publishers. Glueck, W., and C. Thorpe. 1971. The Management of Scientific Research. Columbia, MO: University of Missouri Press. Goll, Irene, and Nancy Brown Johnson. 1996. The Role of Top Management Demographic Characteristics in Employee Participation Programs. International Journal of Management 12(1):76-83. Gilbert, G. Ronald, and Ardel E. Nelson. 1991. Beyond Participative Management: Toward Total Employee Empowerment for Quality. New York: Quorum Books. Gordon, Thomas. 1977. Leader Effectiveness Training. New York: G..P. Putnam’s Sons. Greenberg, Edward S. 1986. Workplace Democracy: The Political Effects of Participation. Ithaca: Cornell University Press. Gulowsen, Jon. 1992. Autonomous Work Groups. In Concise Encyclopedia of Participation and Co-Management. György Széll (ed.). Pp. 57-60. New York: Walter de Gruyter. Hage, J.T. 1999. Organizational Innovation and Organizational Change. Annual Review of Sociology 25:597-622. Harrison, Bennett. 1991. The Failure of Worker Participation. Technology Review 94(1):74. Harrison, Jeffrey S., and Caron H. St. John. 1998. Strategic Management of Organizations and Stakeholders: Concepts. 2nd Edition. Cincinnati, OH: South-Western College Publishing. Harvard Business Review Paperback. 1991. Participative Management. Harvard Business Review. Heckscher, Charles. 1995. The Failure of Participatory Management. Across the Board November/December 16-21. Ch 10 Participative Management 06.08.02.doc 25 06.08.02 Massarik, Fred. 1983. Participative Management: Highlights of the Literature. New York: Pergamon Press. Matejko, Alexander J. 1986. In Search of New Organizational Paradigms. New York: Praeger. Mayo, Elton. 1933. The Human Problems of a Industrial Civilization. New York: McMillan. McAllister, D.J. 1995. Affect and Cognition-Based Trust as Foundations for Interpersonal Cooperation in Organizations. Academy of Management Journal 38(1):24-59. McGregor, Douglas. 1960. The Human Side of Enterprise. New York: McGraw-Hill. McLagan, Patricia, and Christo Nel. 1995. The Age of Participation: New Governance for the Workplace and the World. San Francisco: Berrett-Koehler Publishers. Miles, Robert H. 1987. Managing the Corporate Social Environment. Englewood Cliffs, NJ: Prentice-Hall. Miller, K.I., and P.R. Monge. 1986. Participation, Satisfaction, and Productivity: A Meta- analytic Review. Academy of Management Journal 29:727-753. Mohrman, Susan Albers. 1993. Integrating Roles and Structure in the Lateral Organization. In Organizing for the Future: The New Logic for Managing Complex Organizations. Galbraith, Jay R., Edward E. Lawler III, and Associates (eds.). Pp. 109-141. San Francisco: Jossey-Bass Publishers. Mohrman, S.A., and G.E. Ledford, Jr. 1985. The Design and Use of Effective Employee Participation Groups: Implications for Human Resource Management. Human Resource Management 24(4):413-428. Monat, Jacques. 1992. Worker’s Participation. In Concise Encyclopedia of Participation and Co-Management. György Széll (ed.). Pp. 942-951. New York: Walter de Gruyter. Nelkin, Dorothy. 1984. Science and Technology Policy and the Democratic Process. In Citizen Participation in Science Policy. James C. Petersen (ed.). Amherst: University of Massachusetts Press. [Need page numbers] Ouchi, W. 1981. Theory Z: How American Business Can Meet the Japanese Challenge. Reading, MA: Addison-Wesley. Ostroff, Frank. 1999. The Horizontal Organization: What the Organization of the Future Looks Like and How it Delivers Value to Customers. New York City: Oxford University Press. Parker, Mike. 1993. Industrial Relations Myth and Shop-Floor Reality: The “Team Concept” in the Auto Industry. In Industrial Democracy in America The Ambiguous Promise. Nelson Lichtenstein and Howell John Harris (eds.). Pp.249-274. Cambridge: Cambridge University Press. Parker, M., and J. Slaughter. 1988. Choosing Sides: Unions and the Team Concept. Boston: South End Press. Patchen, Martin. 1976. Participation in Decision-Making and Motivation: What is the Relation? In Participative Management: Concepts, Theory and Implementation. Ervin Williams ed.). Pp. 31-41. Atlanta: Georgia State University. Pateman, Carole. 1970. Participation and Democratic Theory. Cambridge: Cambridge University Press. Ch 10 Participative Management 06.08.02.doc 26 06.08.02 Peltz, D.C., and F.M. Andrews. 1976. Scientists in Organizations: Productive Climates for Research and Development. New York: John Wiley and Sons. Pendleton, Andrew, John McDonald, Andrew Robinson, and Nicholas Wilson. 1996. Employee Participation and Corporate Governance in Employee-Owned Firms. Work, Employment & Society 10(2):205-226. Plas, Jeanne M., and Susan E. Lewis. 2001. Person-Centered Leadership for Nonprofit Organizations. London: Sage Publications. Plas, Jeanne M. 1996. Person-Centered Leadership: An American Approach to Participatory Management. London: Sage Publications. Poole, M.S., A.H. Van de Ven, K.J. Dooley and M.E. Holmes. 2000. Organizational Change and Innovation Processes: Theory and Methods for Research. London: Oxford Press. Purser, Ronald E., and Steven Cabana. 1998. The Self-Managing Organization: How Leading Companies are Transforming the Work of Teams for Real Impact. New York: The Free Press. Rappachi, Rama Murthy. 1992. Managing by Consultation. London: Sage. Rinehart, James. 1984. Appropriating Workers’ Knowledge: Quality, Control Circles at A General Motors Plant. Studies in Political Economy 14:75-97. Sagie, Abraham. 1997. Leader Direction and Employee Participation in Decision Making: Contradictory or Compatible Practices? Applied Psychology: An International Review 46(4):387-452. Sagie, Abraham. 1994. Participation in Decision Making and Performance: A Moderator Analysis. Journal of Applied Behavioral Science 30:227-246. [Get for EM PI Review] Savage, Grant T., Timothy W. Nix, Carlton J. Whitehead, and John D. Blair. 1991. Strategies for Assessing and Managing Organizational Stakeholders. Academy of Management Executive May:65. Schwochau, Susan, John Delaney, Paul Jarley, and Jack Fiorito. 1997. Employee Participation and Assessments of Support for Organizational Policy Changes. Journal of Labor Research 18(3):379-401. Seiling, Jane Galloway. 1997. The Membership Organization: Achieving Top Performance Through the New Workplace Community. Palo Alto, CA: Davies-Black Publishing. Siepert, Albert F. 1964. Creating the Management Climate for Effective Research in Government Laboratories. In The Management of Scientists. Karl Hill (ed.). Boston: Beacon Press. Steele, Lowell W. 1969. Loyalties. Chapter 10. In The R&D Game. David Allison (ed.). Cambridge, MA: The MIT Press. Stokes, Bruce. 1978. Worker Participation – Productivity and the Quality of Work Life. Worldwatch Paper 25. Strauss, G. 1982. Workers Participation in Management: An International Perspective. Research in Organizational Behavior 4:173-265. Susman, Gerald I. 1976. Autonomy at Work: A Sociotechnical Analysis of Participative Management. New York: Praeger Publishers. Ch 10 Participative Management 06.08.02.doc 27 06.08.02 Swearingen, Michael H. 1997. Participative Management: An Analysis of Its Effect on Productivity. New York: Garland Publishing, Inc. Széll, György. 1992. Participative Research. In Concise Encyclopedia of Participation and Co- Management. György Széll (ed.). Pp. 616-630. New York: Walter de Gruyter. Tannenbaum, Robert, and Warren H. Schmidt. 1976. How To Choose a Leadership Pattern. In Participative Management: Concepts, Theory and Implementation. Ervin Williams (ed.). Pp. 17-29. Atlanta: Georgia State University. Taylor, Frederick Winslow. 1911. The Principles of Scientific Management. New York: Harper and Row. Thomas, John Clayton. 1990. Public Involvement in Public Management: Adapting and Testing a Borrowed Theory. Public Administration Review July/August:435-445. Trist, E. 1981. The Evolution of Sociotechnical Systems. In Perspectives on Organizational Design and Behavior. A. Van de Ven and W. Joyce, eds.). New York: Wiley-Interscience. Troxel, James P. 1993. Benefits Beyond the Numbers. In Participation Works. James P. Troxel (ed.). Pp. 17-32. Alexandria, VA: Miles River Press. Troxel, James P. (ed). 1993. Participation Works. Alexandria, VA: Miles River Press. Vroom, Victor H. 1976. Some Personality Determinants of the Effects of Participation. In Participative Management: Concepts, Theory and Implementation. Ervin Williams (ed.). Pp. 93-103. Atlanta: Georgia State University. Vroom, Victor H. 1960. Some Personality Determinants of the Effects of Participation. Englewood Cliffs, NJ: Prentice-Hall. Vroom, Victor H. 1964. Work and Motivation New York: Wiley. Vroom, Victor H., and Philip Yetton. 1973. Leadership and Decision Making. Pittsburgh: University of Pittsburgh Press. Wallace, William McDonald. 1998. Postmodern Management: The Emerging Partnership Between Employees and Stockholders. Westport, CT: Quorum Books. Williams, Ervin (ed). 1976. Participative Management: Concepts, Theory and Implementation. Atlanta: Georgia State University.