handout no. 7 employee involvement
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MPLOY INVOLV M NT
Employee involvement is one approach in improving quality and productivity. Employee
involvement is not a replacement for management nor is it the final word in quality
improvement. It is a mean to better meet the organizations goals for quality andproductivity at all levels of an organization.
Motivation
Knowledge of motivation helps us to understand the utilization of employee involvement to achieve
process improvement.
Maslow Hierarchy of Needs
Abraham Maslow eed !heory" it states that motivation could best e#plained in terms of hierarchy
of needs and that there were five levels. It states that higher order needs cannot be satisfied until
lower order needs cannot be satisfied. It also states that once a given level is satisfied it can no
longer motivate a person. !hese needs are shown in figure below$
Level-I (Survival)
%urvival means food& water& clothing& shelter which is usually provided by a 'ob. In the
wor(place& level)I needs include proper lighting& heating* Air conditioning& ventilation&
phone system& data* +oice access and computer information system.
Level-II (Security)
1
Survival
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%ecurity means a safe place to wor(. ,hen the organization demonstrates an interest in the
personal well)being of employees& it is a motivating factor. A threat of losing ones 'ob
certainly does not enhance motivation. -evel)II is not limited to 'ob security. It also
includes having privacy on the 'ob such as being able to loc( ones office door or having
loc(able storage for personal items as well as having a safe wor( environment that may
include ergonomic ad'ustable furniture.
Level-III (Social)
It relates our need of belongingness. It ahs been said that cutting someone out of the group
is devastating to that individual. Isolation itself is an effective punishment. onversely&
giving an individual the opportunity to be the part of the group by feeling important and
needed will motivate that person. If possible employees should be provided with both
formal social areas such as a cafeteria& conference room etc.
Level-IV (Esteem)
It relates to pride and self worth. Everyone regardless of position or 'ob assignments wants
to be recognized as a person of value to the organization where possible employees should
be given offices or personal space with aesthetics. /usiness cards& wor( space size and office
protocols also provide employees with a certain level of self)esteem within an organization.
%ee(ing advice or input into business or production procession is a good way of telling
employees that they are of valve. !his activity requires giving employees control and
freedom of their 'obs by providing trust.
Level-V (Self-Actualization)
It says that individuals must be given the opportunity to go as far as their abilities can ta(e
them.
Teamwork and Empowerment
It is interesting to note that the managers perception of employee wants differs from what
employee actually wants. /y involving employees through the use of teams in meaningful
wor( and by providing the proper reward and recognition& managers can reap the
advantages of greater quality and productivity long with employee satisfaction.
The manufactures Alliance for Productivity and Innovation stated that:
0rganization that empowerment employees as a part of their total management effort are
twice as li(ely as other firms to report significant product or service improvement. !he
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purpose of empowerment is to tap the enormous reservoir of potential contribution that lies
within every wor(er
An Oerational !efinition of Emo"erment #ollo"s:
Empowerment is an environment in which people have the ability the confidence and thecommitment to ta(e the responsibilities and ownership to improve the process and initiate
the necessary steps to satisfy customer requirements within well)defined boundaries in
order to achieve organizational values and goals. Employee empowerment requires that the
individual is held responsible for accomplishing a whole tas(. !he employee becomes the
process owner thus the individual is not only responsible but also accountable.
Teams
Employee involvement is optimized by the use of teams. !eams however are not a panacea
for solving all quality and productivity problems but in most instances they are effective.
Definition of Team
A team is defined as a group of people wor(ing together to achieve common ob'ectives or
goals. !eamwor( is the cumulative actions of the team during which each member of the
team subordinates his individual interests and opinions to fulfil the ob'ectives or goals of
the group. !he ob'ectives or goals may be$
%olve a problem
Improve a process
1esign an equipment
2lan a conference
Audit a process
2lease a customer
!he needs of team be clearly defined have milestone set have resources provided and use a
systematic approach.
Types of Teams
!he development of quality control circles by the 3apanese in 4564 is considered to be the
beginning of the use of teams to improve quality.
7 87uality ontrol ircles9 are groups of people from one wor( unit who voluntarily
meet together on a regular basis to identify& analyze and solve quality related and other
problems within their area. !hey choose their own problems and focus on quality of wor(
life and health:safety issues rather than on improving wor( processes. 0ften they remain in
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e#istence over a long period of time wor(ing on pro'ect after pro'ect. A ma'or drawbac( of
7 was a lac( of middle management support and as a result member frequently were
not able to persuade management to implement their recommendations.
!eams can be divided into four main groups$
Process Improvement Team
!he members of the process improvement team represent each operation of the process or
sub)process. !he scope of the teams activity is limited to wor( unit. A team of about 6)4;
members will come from the wor( unit. 1epending on the location of the sub)process an
internal or e#ternal supplier and internal or e#ternal customer would be included on the
team. 1uring the course of the teams life additional e#pertise from other wor( areas may
be added the life cycle of this type of team is usually temporary 8It is disbanded when the
ob'ective has been obtained9
Cross-functional Team
A team of about 6)4; members will represent a number of different functional areas 8such
as engineering& mar(eting& accounting& production& quality and
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. Team %harter:A team charter is document that defines the teams mission&
boundaries& the bac(ground of the problem& the teams authority and duties and
resources it also identifies the members and their assign role& recorder& time)(eeper& etc.?. Team %omosition: !he time of the team should rarely e#ceed 4; people e#cept in
the case of natural wor( teams or self) directed teams. -arger teams have difficulty
maintain commitment and inter)personal aspects become difficult to control. !eams
should be diversed by having members with different s(ills& perceptive and potential.
8,here appropriate& internal and e#ternal customers and suppliers should be included9
@. Trainin&: As the need arises& members should be trained in problem)solving
techniques& team dynamics and communication s(ills.
. 'round rules:the team must develop its rules of operation and conduct& there
should be open discussion on what will and will not be tolerated. 2eriodically the
ground rules should be reviewed and revised when appropriate6. %lear O()ectives:,ithout clear ob'ectives and goals& the team will have
difficulty. In addition the criteria for success should be agreed on with management.
B. Accounta(ility:!he team is accountable for its performance. 2eriodic status
report should be given to the quality council. In addition the team should review its
performance to determine possible team process wea(ness and ma(e improvements
C. *ell+defined !ecision Procedures: Effective acceptable and timely
decisions have to be made by the team
5. ,esources:ot only is funding and employee release time for the pro'ect is
important but access to information is also important. !he team cant be e#pected toperform successfully without the necessary tools
4;. Trust$ Management must trust the team to perform the tas( effectively. !here must
also be trust among the members and a belief in each other
44. Effective 2roblem %olving$ 1ecisions are based on the problem)solving methods
4>. Oen %ommunication$ Members actively listen without interruption to other
members & spea( with clarity and directness as( questions etc
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4?. Aroriate Leadershi$ All teams need leadership whether imposed by the 7
or someone emerges from within the team and sometimes the leadership changes as the
team matures
4@. -alanced Particiation$ All members must become involved in the teams
activities by voicing their opinions& lending their (nowledge and encouraging othermembers to ta(e part
4. %ohesiveness $ Members should be comfortable wor(ing with each other D act as
a single unit not as individuals or sub)groups.
Team Mem$er %oles
!eams are usually selected or authorized by the quality ouncil.
A team will consist of$
- !eam leader- acilitator- =ecorder- !ime Keeper- Members
All team members have clearly defined roles D responsibilities.!he team leader& selected by
the 7& sponsor or the team itself has the fall.
Roles:
- Ensure smooth D effective operation of the team& handing& assigning record (eeping&
orchestrating activities& overseeing 2reparation of repots D 2resentations.
- acilitates team process & ensure that all members participate during the meeting s
prevent other member from dominating
- %erves as an interface b:w tem D the %ponsor :7c- 0rchestrates the implementation of the change recommended by the team within
organizational constraint D !eam boundaries.
- Monitor the status D accomplishment of member & assuring timely completion of
assignment s
- 2repares the meeting agenda including time date D location stic( to the agenda or
modifies it where appropriate D ensure the necessary recourses are available for themeeting
- Ensure that team decisions are made by consensus where appropriate & rather than by
unilateral decision& ma'ority Frule decision or minority F rule decision
&acilitator
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!he acilitator is not a member of the team" he is a neutral assistantD may not be needed
with a mature team. =oles of facilitator are$
- %upport the leader in facilitating the team during the initial stages of the team.- ocuses on the team process F in concerned more with how decisions are made rather
than the decision itself.- Act as a resource to the team by intervening when necessary to (eep team on trac(.- 2rovides feedbac( to the team concerning the effectiveness of the team process.
Team %ecorder
!eam recorder who is selected by the leader or by the team and may be rotated on a
periodic basis. !he roles are$
- 1ocuments the main ideas of the teams discussion& the issue raised& decisions made&
action items and future agenda items
- 2resents the documents for the team to review during the meetings and distributes them
as minutes after the meeting in a timely manner
- 2articipates as a team member
Time 'eeper
,ho is selected by the leader or by the team and may be rotated on a periodic basis& has the
following roles$
- Monitors the time to ensure that the team maintains the schedule as determined by the
agenda- 2articipates as a team member
Team Mem$ers(
=oles are$
- ontribute best without reservation by actively participating in meetings and sharing
(nowledge& e#pertise& ideas and information
- =espect other peoples contributions)dont criticize& complain or condemn- -isten carefully and as( questions- !olerant of individual differences- !rust& support and has genuine concern for other team members- Encourages feedbac( on own behavior
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- Ac(nowledge and wor( there conflict openly- arries out assignments honestly- 2rovide loyal and sincere appreciation
!u##estion !ystem
%uggestions systems are designed to provide the individual with the opportunity to be
involved by contributing to the organization. Most of the ideas for continuous improvement
will come from the team approach. 0nce the foundation for a !7M organization has been
established a suggestion system can operate effectively and in parallel to the team
approach. !he (ey to an effective system is management commitment. Management must
ma(e it easy for employees to suggest improvements. Managements should then review
them promptly and if feasible implement them. %timulating and encouraging employee
participation starts the creative process. !here are five ground rules$
4. /e productive$ by regularly as(ing your employees for suggestions. Merely putting up
a suggestion bo# will not create the necessary motivation
>. =emove fear$ by focusing on the process and not on the person. ,hen employees (now
that punitive actions will not occur they are more li(ely to respond
?. %implify the process$ simplify the process so it is easy to participate. %tamp out
superfluous paper wor(& review and procedures
@. =espond quic(ly$ respond quic(ly to suggestions and within a specific period of time.
!he evaluation process must be simple and effective. !he response in writing has three
possible responses$ Acceptance& =e'ection& and =eferral 8to a committee for further
evaluation9. If accepted a time frame for implementation should be given. If re'ected the
reason for the re'ection should be stated if referral to a committee the evaluation time
should be stated
. =eward the Idea$ ,ith published recognition everyone will come to (now the value of
the contribution.
Individual ideas are a vast untapped resource. !he five steps approach helps to create an
environment that opens communication between employees and mangers. Idea generation
is a s(ill that requires practice. It supplements the team process.
%eco#nition and %eward !ystem
=ecognition is a form of employee motivation in which the organization publicly
ac(nowledge the positive contribution an individual or team has made to the success of the
organization. !his ac(nowledgement is delivered using verbal and written praise and may
include symbolic items such as certificates and plaques. =eward is something tangible such
as an e#hibition tic(et& dinner for two or a cash award to promote desirable behavior.
=ecognition and reward go together to form a system for letting people (now they are
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valuable members of the organization. Employees should be involved I the planning and
implementation of the recognition and reward program. !his activity should be performed
by a cross)functional team that represents all areas of the organization. %ystems that are
developed with employee involvement will most li(ely succeed. !he system should be
simple& fully understood by the employees and reviewed periodically in order to
continuously improve the system.
!he policies and procedures must be consistently and fairly applied throughout the
organization. =ecognition should be valid& genuine and meaningful for the giver and the
recipient. It should not be used to manipulate the people. 2eople li(e to be recognized&
either as a team or individually. A persons feeling of achievement value to the organization
(nowing the organization cares and having peer recognition may be more important than
any reward.
In addition to the plaque or framed certificate given at formal banquet or informal pizza
party there are other forms of individual and team recognition. 0ther forms of recognitioninclude pictures on the bulletins board& articles in news letters or newspapers& letters to
families& ma(ing a presentation to top management& passing along compliments from
others& personal phone calls compliments from others or notes& placing notes in folders etc.
!here are many different forms of individual and team rewards. Individual rewards
include better par(ing space& dinner out& gift certificates& washing an employees car during
lunch hour& trips and tic(ets of clubs etc. group rewards are also similar
Performance )ppraisal
!he purpose of performance appraisal is to let employees (now how they are doing and
provide a basis for promotions. %alary increases& counseling and other purposes related to
an employees future.
!here should be a good relation between employee and the appraiser. Employees should be
made aware of the appraisal process what is evaluated and how often. Employees should be
told how they are doing on a continuous basis not 'ust at appraisal time. !he appraisal
should point out strengths and wea(nesses. A (ey factor in successful performance
appraisal is employee involvement.
An employee should always be given the opportunity to comment on the evaluation.
2erformance must be based on standards that are developed and agreed upon the
appraiser and employee. %tandards normally contain an idea level and an acceptable level.
%tandards should change when the situation changes. %uch as when equipment changes or
new production techniques are developed.
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2erformance appraisals should be viewed as a positive way to get employees involved.
Every effort should be made to avoid errors in performance evaluations. ulture& ethics&
education level and predetermined opinions can affect evaluations.
An unfair evaluation would prove costly to an organization to lose a valuable employee
even. !he traditional performance appraisal system has been criticized as being counterproductive and unnecessary by such quality e#perts as 1eming and %choltes. !here are a
number of arguments to support their opinion. Appraisals nourish short term performance
and destroy long)term planning. requently long)term gains are sacrificed by ma(ing the
individual loo( good in the short)term. !his outloo( is especially prevalent when we loo( at
the emphasis on the quarterly profit and loss statement. Another criticism states that
individual appraisal destroys team wor(. It teams are to become a cohesive unit of Gall for
one and one for allH& and then individual ran(ing would undermine the entire concept. !he
end result would be a team that performs poorer not better. A third concern is the
assumption that an individual is responsible for all results. In reality the results are
frequently beyond an individuals control such as processes and equipment. 1emanding
has stated that C of the problems are the result of the system. -ast& there is a concern
that appraisal are frequently based on sub'ectivity and immeasurable. !hey should be
based on ob'ectivity" however it is difficult to measure some attributes such as customer
satisfaction and leadership. =ather than scrap performance appraisals& a number of
practitioners have suggested that the performance appraisal system be improved. %ome
improvements suggestions are$
4. Jse =ating %cales that have few rating categories. It is difficult to differentiate the
middle range of performers appro# 6B& whereas its relatively easy to rate the 4; to
>; at each end. !herefore scales should be limited to between ? and .
>. =equire wor( team or group evaluations that are at least equal in emphasis to
individual)focused evaluations. !he increased interdependence of tas(s associated with
!7M in the wor(place dictates that team performance be utilized. !his action will
encourage team members to help& support& and cooperate with each other.
?. =equire more frequent performance reviews where such reviews will have a dominant
emphasis on future performance planning. ,or( team and individual performance
data should be collected and reviewed with an evaluation of results and lessons learned.
It may be necessary to have two reviews)one immediately after completion of the tas(
and when the performance cycle of the tas( allows evaluation of results. More
frequently reviews with emphasis on improvement are much less threatening than the
annual appraisal.
@. 2romotion decisions should be made by an independent administrative process that
draws on current)'ob information and potential for the new 'ob. 2lacing too much
weight on current performance in the selection process can force well)intentioned
appraisal to ma(e poor decision. or e#ample the highest performing teller in a ban(
may not be the best person to promote to loan officer.
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. Include inde#es of e#ternal customer satisfaction in the appraisal process. In order to
accomplish this process& the customers and their requirements will need to be
identified" performance metrics determined using a rating scale and the improvement
process initiated. Evaluation will be based on the change in the metrics once the base)
line has been established.
6. Jse peer and subordinate feedbac( as an inde# of internal customer satisfaction.
Initiation of this activity would be similar to the previous item.
B. Include evaluation for process improvement in addition to results. 2rocess behavior
tends to be more within the persons control. 0ne of the basic of !7M is continuous
process improvement" therefore& if this concept is to be achieved it must be appraised.
!here is frequently a lag between process improvement and the results from that
improvement.
*nions and Employee Involvement
In general& unions support quality improvement programs but e#press concern regardingmanagement e#ercising too much control over employees. Jnion representatives must be
involved in any program involving employees. Although employee involvement has been
widely accepted it could be a problem if not properly addressed. !eams should not discuss
wages& rates of pay& hours of employment& or conditions of wor(. In some cases these
limitations will adversely affect the teams ob'ective.
/oth management and unions must e#amine long)held views of what constitutes proper
union)management relationships. 1esire for unilateral power must be changed to share
power for benefit of employees and organization. A 'oint process of determining how best to
proceed to effectively meet the competition especially from foreign organizations is the onlysensible solution. Management must recognize and respect the unique role unions play in
employee involvement. A feeling of trust must be established and a partnership developed
between management and the union.
Jnion involvement improves the continuous improvement process" however union
leadership runs the ris( of criticism from the members if it is perceived as wor(ing too
closely with management. !he nature of the relationship will be determined by the
bac(ground and history or the labor management relations in the organizations and the
willingness of the union to participate. Ideally the leadership of the organization will see(
early involvement of the union and ma(e the nature of the involvement as specific aspossible.
)dditional Comments
Employee involvement should not be loo(ed at as a fad that will go away soon. It is a way
of life crucial to !7M and it can mean the difference between being competition and going
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out of business. Employees& not senior management hold the future in their hands. !he sign
over the plant entrance that says& through these doors pass our most important asset our
employees does not ring true when employees have a feeling no one really cares. More
involvement might be encouraged by the sign$ no one us (nows as much as all of usH
As the organizational culture begins the process of change resistance to this change willcertainly be present. Keeping people informed will reduce resistance especially when they
see the benefits. hange is an ongoing process that must occur if an organization is to
continue to e#ist in the competitive world. 2eople dont necessarily resist change they resist
being change and problems arise when a persons comfort zone is disturbed.
Much of the information in this chapter has related to the role of management.
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