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    DISSERTATION REPORT

    ON

    EMPLOYEE INVOLVEMENT OR PARTICIPATION AND ITSEFFECT ON FIRM AND WORKERS AT BHEL

    SUBMITTED IN PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE DEGREE OF MASTER OF BUSINESS

    ADMINISTRATION

    MBA

    (2010-2012)

    TOUTTARAKHAND TECHNICAL UNIVERSITY

    UTTARANCHAL INSTITUTE OF BUSINESS STUDIES, DEHRADUN

    SUBMITTED TO:

    MS. RICHA KHUGSHAL

    SUBMITTED BY:

    ANKITA MEHTA

    MBA-IV (UIBS-D)

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    CERTIFICATE

    I have the pleasure in certifying that Ms.Ankita Mehta is a bonafide student of fourth 4 TH semester of the Masters Degree in Business Administration of Uttaranchal Institute of Business Studies, Dehradun. .

    she has completed her dissertation work entitled EMPLOYEE INVOLVEMENTAND ITS EFFECT ON FIRM AND WORKERS A T BHEL under my guidance.

    This project fulfils the requirement of the curriculum prescribed by Uttarakhand TechnicalUniversity, Dehradun for the said course.

    Signature:

    Name of the Guide: Ms.Richa Khugshal

    Date: .

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    DECLARATION

    I declare that the Dissertation Report EMPLOYEE INVOLVEMENT AND ITSEFFECT ON FIRM AND WORKERS AT BHEL is a record of independent researchwork carried out by me during the academic year 2010-12 under the guidance of myfaculty guide Ms. Richa Khugshal of Uttaranchal Institute of Management.

    I also declare that this dissertation is the result of my effort and has not beensubmitted to any other University or Institution for the award of any degree, or personalfavour whatsoever. All the details and analysis provided in the report hold true to the bestof my knowledge.

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    Ankita Mehta

    ACKNOWLEDGEMENT

    I express my deepest sense of gratitude to GOD almighty for the abundant blessingwithout which the study would have never been light of the day.

    I hereby acknowledge my sincere gratitude to the U.K.TECH University and theManagement for giving me an opportunity to undergo MBA Degree Course and toundertake this project work successfully.

    I wish to express my deep sense of thanks to my mentor Ms.Richa Kugshal

    I owe my reverential gratitude faculty guide Ms. Richa Kugshal for her valuableguidance and suggestions rendered at each stage of the project.

    Last, but not Least I would like to acknowledge the wholehearted support of myparents, faculties, and friends who helped me at various stages in completing this work successfully.

    Ankita Mehta

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    PREFACE

    This Research is a part of my dissertation report is an integral part of every M.B.A course.

    We cant rely merely upon theoretical knowledge. It is to be complemented by practicalknow how for it to be fruitful. A positive and correct result of the classroom learningneeds realities of practical situation.

    The report submission enables the management students to themselves work in researchby them own for getting benefit in the future. It gives them real feel of research work,which helps them to better equip themselves with the required skills. I got the opportunityto complete research work on EMPLOYEE INVOLVEMENT AND ITS EFFECTON FIRM AND WORKERS AT BHEL In particular I was lucky enough to be part of study and I was assigned to do some research regarding the strategy formulation for

    marketing of the product/services of the institute. It has been a great learning experiencefor me.

    The study would not have been possible without the unconditional guidance and supportof my guide.

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    INDEX

    1. INTRODUCTION .. 7

    2. OBJECTIVE OF THE STUDY 15

    3. COMPANY PROFILE .16

    4. REVIEW OF LITERATURE ..20

    5. RESEARCH METHODOLOGY 35

    6. ANALYSIS 55

    7. LIMITATIONS....59

    8. FINDINGS .60

    9. RECOMMENDATION .62

    10. CONCLUSION ..64

    11. BIBLIOGRAPHY ..65

    12. ANNEXURE ..66

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    INTRODUCTION

    When an organization truly wants to create a positive work environment that is based on

    high trust, exceptional customer service, collaborative teamwork, operational excellence,and creative problem solving, then the leadership team must begin to understand, investin, and be responsive to the needs of the group that represents the organizations mostvaluable assets, and is also one of its most important customers, the employees. The returnon such nominal investments will come in the form of higher levels of employeemotivation, creativity, productivity, and commitment that will move the organizationforward with greater profitability. A fundamental Total Quality Management precept isthat employees must be involved and empowered.

    Employee involvement means that every employee is regarded as a unique human being,

    not just a cog in a machine, and each employee is involved in helping the organizationmeet its goals. Each employees input is solicited and valued by his/her management. Employees and management recognize that each employee is involved in running thebusiness.

    What is employee involvement?

    Employee involvement is a process for empowering employees to participate inmanagerial decision-making and improvement activities appropriate to their levels in the

    organization. Since McGregors Theory Y first brought to managers the idea of aparticipative management style, employee involvement has taken many forms, includingthe job design approaches and special activities such as quality of work life (QWL)programs.

    There is at the end of the day only one thing that differentiates one company fromanother its people. Not the product, not service establishments, not the process, not secretingredients; ultimately any of these can be duplicated. The Japanese have alwaysrecognized this and it is one of the reasons for their success in world markets they placetremendous value on the integration of people with organizational objectives, equipment

    and processes.The employees force the organizations to address three key issues; communication,involvement and development. In fact the three issues can be used as a measure of anorganizati ons maturity in the employment relationship. Here, we are going to address theissue of involvement and its relationships. Many people confuse communication systemssuch as team briefings with involvement. Involvement, however is more than just the

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    exchange of information. It is the gradual but radical delegation of control to those closestto the process itself. Self-managed teams, cell-based manufacture, autonomous work groups, high performance work systems, are all examples of true involvement

    EMPLOYEE INVOLVEMENT OR WORKERS PARTICIPATION INMANAGEMENT

    INTRODUCTION

    The word participation means sharing the decision-making power with the lower ranks of the organization in an appropriate manner. Participation has a unique motivational powerand a great psychological value. It promotes harmony and peace between workers andmanagement. When workers participate in organizational decisions, they are able to see

    the big picture clearly, i.e., how their actions would contribute to overall growth of thecompany. They can offer feedback immediately based on their experiences and improvethe quality of decisions significantly. Since they are involved in the decisions from the

    beginning, they tend to view the decisions as their own and try to translate the rhetoricinto concrete action plans with zeal and enthusiasm. Participation makes them moreresponsible. They are willing to take initiative and contribute cost-saving suggestions andgrowth-oriented ideas. The feeling of being treated as equals, forces them to repose theirconfidence in management and accept plans of rationalization, expansion, etc., withoutraising serious objections. Since they are treated with respect now they begin to view the

    job and the organization as their own and commit themselves to organizational activitieswholeheartedly.

    Output cannot be increased unless there is effective co-operation between labour andmanagement at all levels. The way of ensuring this is to satisfy their social and

    psychological need besides economic ones. Workers participation in management is oneof the most significant modes of resolving industrial conflicts and encouraging amongworkers a sense of belongingness in establishment where they work.

    Moreover, India which has launched a vast programme of industrialization, the need forworkers participation is all the more important. It is in reorganization o f these need that

    under the Second, Third, Fifth and Seventh plans specific measures have been suggestedfor workers participation.

    The scheme of Joint Management Council, popularly known as Workers participation inmanagement, was introduced on voluntary basis only after over a decade. However, thescheme of Joint Management Council for various reasons could not succeed. In order to

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    meet this unhappy state of affairs and to secure greater measure of co-operation betweenlabour and management to increase efficiency in public service, the Government of Indiaon October 30, 1975 introduced a scheme of workers participation in management atshop floor and plant levels. In addition to these, there are voluntary schemes of makingthe workers shareholders and Directors in the Board of Management. The inclusion of the concept of workers participation in management in the Directive Principles of StatePolicy through the Constitution (Forty-second) Amendment Act, 1976, gave a momentumto the institution of worker s participation in management. After the constitutionalAmendment the Central Government expressed its intention to amend the 1975-Schemeand to provide for effective participation of workers in production processes andaccordingly amended the scheme in January 1977.

    There are two distinct groups of people in an undertaking, viz,managers and workers performing respectively two separate sets of functions which are known as managerialand operative. Managerial functions are primarily concerned with pl anning, organizing,motivating and controlling in contrast with operative work. A self-employed man maycarry out both these functions if the area of his operations is very small. But in case of bigorganizations, these functions are to be performed by dif ferent sets of people. Workersparticipation in management seeks to bridge this gap authorizing workers to take part inmanagerial process. Actually, this is a very wide view of the term workers participationin management and this is not practically possible.

    Participation may take two forms. It may be:

    (1) ascending participation, and

    (2) descending participation.

    In case of ascending participation, the workers may be given an opportunity to influencemanagerial decisions at higher levels through their elected representatives to joint councilsor the board of directors of the company. But in descending participation, they may begiven more powers to plan and to make decisions about their own work (e.g. delegationand job enlargement). This form of participation is quite popular in many organizations.

    Implications of workers participation in management

    The implications of workers participation in management have been summarized by the

    International Labour Organization thus:

    1. Workers have ideas which can be useful.

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    2. Upward communication facilitates sound decision-making. Workers may accept

    decisions better if they participate in them.

    3. Workers may work more intelligently if they are informed about the reasons for and the

    intention of decisions that are taken in a participative atmosphere.

    4. Workers may work harder if they share in decisions that affect them.

    5. Workers participation may foster a more cooperative attitude amongst workers and

    management thus raising efficiency by improving team spirit and reducing the loss of

    efficiency arising from industrial disputes.

    6. Workers participation may act as a spur to managerial efficiency.

    DEFINITIONS

    The concept workers participation in management (WPM) is a broad and complex one.

    Depending on the socio-political environment and cultural conditions, the scope and

    contents of participation may change. In any case, a common thread running through all

    interpretations is the idea of associating employees in managerial decision-making. The

    view expressed by the International Institute for Labour Studies (Bulletin 5) is worthquoting here. WPM has been defined as, the participation resulting from practices

    which increase the scope for employees share of influence in decision -making at

    different tiers of organizational hierarchy with concomitant assumption of responsibility.

    The concept of workers participation in management crystallizes the concept of Ind ustrial

    Democracy, and indicates an attempt on the part of an employer to build his employees

    into a team which work towards the realization of a common objective1.

    According to Davis, it is a mental and emotional involvement of a person in a group

    situat ion which encourages him to contribute to goals and share responsibilities in them2.

    Workers participation in management is a resounding phrase, bridging the past and the

    future. It echoes the millennial vision of nineteenth century thinkers while heralding the

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    evolution of new forms of industrial organization under twentieth century pressures. The

    word workers participation is plentifully supplied with i deas, institutions and opinions.

    Mamoria defines it as a system of communication and consultation either formal or

    informal by which employees of an organization are kept informed about the affairs of theundertaking and through which they express their opinion and contribute to management

    decisions4.

    The International Institute of Labour Studies remar ks: The participation results from

    practices which increase the scope for employees share of influence in decision -making

    at different tiers of the organizational hierarchy with concomitant assumptions of

    responsibility5. This becomes meaningful only in such a situation. Here it is quite evident

    that the participation of each should strictly confine to the field for which he is competentand concerned with. Everybody poking his nose into everything is, therefore, not

    participation, but proliferation. This must have been the reason why a group of practising

    managers defined: workers participation in management is involvement of workers only

    in such areas of activities of the enterprises where they can make some positive

    contribution for the betterment of the enterprise.6 Such participation should facilitate

    effective utilization of available resources and effective execution of long-term expansion

    plans, including diversification. It should facilitate the day-to-day functioning as well as

    inventions and innovations.

    NEED OF WORKERS PARTICIPATION

    Workers participation in management has assumed great importance these days because

    of the following advantages:

    1. Reduced industrial unrest: Industrial conflict is a struggle between two organized

    groups which are motivated by the belief that their respective interests are endangered by

    the self-interested behaviour of the other. Participation cuts at this very root of industrial

    conflict. It tries to remove or at least minimize the diverse and conflicting interests

    between the parties, by substituting in their place, cooperation, homogeneity of objects

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    and common interests. Both sides are integrated and decisions a rrived at becomes ours

    rather than theirs.

    2. Reduced misunderstanding: Participat ion helps dispelling employees

    misunderstanding about the outlook of management in industry.

    3. Increased organization balance: If worker are invited to share in organizational

    problems, and to work towards common solutions, a greater degree of organizational

    balance occurs because of decreased misunderstanding of individual and group conflict.

    Participation leads to increased understanding throughout the organization. People learn

    that others have problems beside themselves.

    4. Higher productivity: Increased productivity is possible only when there exists fullest

    co-operation between labour and management. It has been empirically tested that poor

    labour management relations do not encourage the workers to contribute anything more

    than the minimum desirable to retain their jobs. Thus, participation of workers in

    management is essential to increase industrial productivity.

    5. Increased Commitment: An important prerequisite for forging greater commitment is

    the individuals involvement and opportunity to express himself. Participation allows

    individuals to express themselves at the work place rather than being absorbed into a

    complex system of rules, procedures and systems. If an individual knows that he can

    express his opinion and ideas, a personal sense of gratification and involvement takes

    place within him. This, in turn, fortifies his identification with the organization resulting

    in greater commitment.

    6. Industrial democracy: Participation helps to usher in an era of democracy in industry. It

    is based on the principle of recognition of the human factor. It tends to reduce class

    conflict between capital and labour. It also serves as a support to political democracy.

    7. Development of Individuals: Participation enhances individual creativity and response

    to job challenges. Individuals are given an opportunity to

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    direct their initiative and creativity towards the objectives of the group. This facilitates

    individual growth.

    8. Less resistance to change: when changes are arbitrarily introduced from above without

    explanation, subordinates tend to feel insecure and take counter measures aimed atsabotage of innovations. But when they have participated in the decision making process,

    they have had an opportunity to be heard. They know what to expect and why. Their

    resistance to change is reduced.

    OBJECTIVES OF WPM

    The main objectives of workers participation in management include:

    i. To promote increased productivity for the advantage of the organization, workers andsociety at large;

    ii. To provide a better understanding to employees about their role and place in the

    process of attainment of organizational goals;

    iii. To satisfy the workers social and esteem needs; and

    iv. To strengthen labour management co-operation and thus maintaining industrial peace

    and harmony.

    v. To develop social education for effective solidarity among the working community and

    for tapping latent human resources.

    vi. An ideological point of view to develop self-management in industry.

    vii. An instrument for improving efficiency of the company and establishing harmonious

    industrial relations.

    viii. To build the most dynamic human resource.

    ix. To build the nation through entrepreneurship and economic development.

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    x. To improve the quality of working life by allowing the workers greater influence and

    involvement in work and the satisfaction obtained from work.

    xi. Development of human personality

    xii. Development of leader from within the industry.

    xiii. Development of working class.

    xiv. Creation of a just egalitarian society.

    xv. Facilitate self-development of worker.

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    OBJECTIVES OF THE STUDY

    PRIMARY OBJECTIVE

    SECONDARY OBJECTIVE

    To provide valuable suggestions to the company.

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    COMPANY PROFILE

    BHEL was founded in 1950s. Bharat Heavy Electricals Limited-BHEL, has todayemerged as the largest engineering and manufacturing enterprise of its kind in India andranks amongst the top ten power generation equipment manufacturers in the world.With amassive network of 14 manufacturing Units located at various important centres all overIndia , BHEL manufactures almost all critical high technology products required forpower sector like Gas Turbines, Steam Turbines, Turbogenerators, Boilers, Pumps andHeat exchangers, Pulverisers and electrical switch gears.

    BHEL is one of the largest exporters of engineering products & services from India.BHEL has established its references in around 60 countries of the world, ranging from theUnited States in the West to New Zealand in the Far East. Its export range include:individual products to complete power stations, turnkey contracts for power plants, EPCcontracts, HV/EHV Sub-stations, O&M services for familiar technologies, specializedafter-market services like Residual Life Assessment (RLA) studies and retrofitting,refurbishing & overhauling, and supplies to manufacturers & EPC contractors.

    BHEL has acquired certifications to Quality Management Systems (ISO 9001),Environmental Management Systems (ISO 14001) and Occupational Health & SafetyManagement Systems (OHSAS 18001) and is also well on its journey towards TotalQuality Management.The company recorded revenues of INR2,160,800 million(approximately $53,674.3 million) in the fiscal year ended March 2007, an increase of 15.3% over 2006. Its net profit was INR281,500 million (approximately $6,992.5 million)in fiscal year 2007, an increase of 16.6% over 2006.

    VISION

    A World-class Engineering Enterprise Committed to enhancing Stakeholder Value.

    MISSION

    To be an Indian Multinational Engineering Enterprise providing Total Business Solutionsthrough Quality Products, Systems and Services in the fields of Energy, Industry,Transportation, Infrastructure and other potential areas.

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    The greatest strength of BHEL is its highly skilled and committed 43,636 employees.Every employee is given an equal opportunity to develop himself and grow in his career.Continuous training and retraining, career planning, a positive work culture and

    participative style of management all these have engendered development of a committedand motivated workforce setting new benchmarks in terms of productivity, quality andresponsiveness.

    They are an integrated power plant equipment manufacturer and one of the largestengineering and manufacturing companies in India in terms of turnover. They wereestablished in 1964, ushering in the indigenous Heavy Electrical Equipment industry inIndia - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 andpaying dividends since 1976-77

    They are engaged in the design, engineering, manufacture, construction, testing,commissioning and servicing of a wide range of products and services for the core sectorsof the economy, viz. Power, Transmission, Industry, Transportation, Renewable Energy,Oil & Gas and Defence. They have 15 manufacturing divisions, two repair units, fourregional offices, eight service centers and 15 regional centers and currently operate atmore than 150 project sites across India and abroad. We place strong emphasis oninnovation and creative development of new technologies. Our research and development(R&D) efforts are aimed not only at improving the performance and efficiency of ourexisting products, but also at using state-of-the-art technologies and processes to develop

    new products. This enables us to have a strong customer orientation, to be sensitive totheir needs and respond quickly to the changes in the market.

    The high level of quality & reliability of our products is due to adherence to internationalstandards by acquiring and adapting some of the best technologies from leadingcompanies in the world including General Electric Company, Alstom SA, Siemens AGand Mitsubishi Heavy Industries Ltd., together with technologies developed in our ownR&D centers. Most of our manufacturing units and other entities have been accredited toQuality Management Systems (ISO 9001:2008), Environmental Management Systems(ISO 14001:2004) and Occupational Health & Safety Management Systems (OHSAS

    18001:2007).

    We have a share of 62% in India's total installed generating capacity contributing 72%(approx.) to the total power generated from utility sets (excluding non-conventionalcapacity) as of March 31, 2011. We have been exporting our power and industry segmentproducts and services for approximately 40 years. We have exported our products andservices to more than 70 countries. We had cumulatively installed capacity of over 8,500

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    MW outside of India in 21 countries, including Malaysia, Iraq, the UAE, Egypt and NewZealand. Our physical exports range from turnkey projects to after sales services.

    We work with a vision of becoming a world-class engineering enterprise, committed toenhancing stakeholder value.

    Our greatest strength is our highly skilled and committed workforce of 46,748 employees.Every employee is given an equal opportunity to develop himself and grow in his career.Continuous training and retraining, career planning, a positive work culture andparticipative style of management - all these have engendered development of acommitted and motivated workforce setting new benchmarks in terms of productivity,quality and responsiveness.

    1.1 About BHEL:

    Bharat Heavy Electricals Limited (BHEL) (www.bhel.com) is a premier engineering andmanufacturing organization with majority share holding by Govt. of India. BHEL offers awide spectrum of products and services to the core infrastructure sectors of Indianeconomy viz.Power Generation, Transmission, Industry, Transportation and RenewableEnergy. BHEL has been in this business for more than five decades now. In India, BHELhas 14 manufacturing units, 4 power sector regions, 8 service centers and 15 regionaloffices besides host of project sites spread all over India and abroad. BHEL-suppliedequipments account for more than 65% of the total installed generating capacity in Indiaand contribute approximately to 73% of the total power generation in the country. More

    details about BHEL and the products and services can be found at the website.

    1.2 About Electronics Division unit of BHEL:

    Electronics Division (EDN) (www.bheledn.com) unit of BHEL was formed in 1976 atBangalore,mainly to establish a strong base in the areas of Automation and PowerElectronics to supplement the Companys pioneering efforts in the above mentioned coresectors. Most of the power plants and industries in the country today are equipped withelectronics products and systems that have been manufactured and supplied by BHELEDN. We also have a good international reference by way of our exports to European,Middle-East and South-East Asian markets. EDN has been accredited with ISO 9001, ISO14001 and OHSAS 18001 standard certifications.

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    1.3 BHELs Expe rience in Semiconductor Devices:

    Since 1978, BHEL has been in the field of manufacture of discrete power semiconductordiodes and thyristors. The ratings of diode manufactured by BHEL, at the ElectronicsDivision unit of Bangalore, are in the range of 250-2000A / 1400-4400V. The ratings of

    phase control thyristor manufactured by BHEL are in the range of 150-3300A and 1400-7000V. BHEL has been supplying these diodes and thyristors to various domestic andexport market segments such as traction locomotives, variable frequency drives, high-current rectifiers, high-voltage DC transmission stations, static excitations systems,brushless exciters in turbo-generators and alternators and high-frequency inverters.National HVDC, Rihand-Delhi and Chandrapur-Padghe HVDC line projects in India,3100HP and 4000HP Diesel-Electric locomotives of Indian Railways and Exciters of 250MW and 500MW Turbo-generators for power stations are some of the major contractsin which BHEL devices are used.BHEL has acquired technology from M/s Siemens,Germany and M/s ABB, Switzerland for these products in 1978 and 1986 respectively.Subsequently, BHEL has developed and manufactured custom-specific diodes, thyristorsand heat-sink assemblies against specific requirements, based on experience and technicalexpertise. Cumulatively, BHEL has manufactured and supplied more than 3.5 Lakhs of semiconductor devices. More details of semiconductor products can be found atwww.bheledn.com. Sample photographs of various devices and heat-sink assemblies areprovided in Enclosure 1.

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    LITERATURE REVIEW

    Juliette summers (university of stirling) and jeff hyman (university of

    Aberdeen) worked together on employee participation and companyperformance for joseph rowntree foundation.

    A literature review looking at the links between employee participation, company

    performance and the quality of working life.

    This report assesses existing research evidence on links between employee participation in

    organisational decision making, company performance and the quality of working life.

    The intention is to examine the value of different approaches to participation to

    employees, employers and the State.

    The report examines the different rationales for participation from economic, social

    justice and political perspectives. Through these perspectives, it identifies different

    approaches to the subject, with employers and neo-liberal interests broadly supporting

    individual and low influence approaches while employee bodies, such as trade unions and

    the European Union collective, favour more regulatory influences. The impact of new

    forms of participation, including high-involvement work systems and partnership, is also

    considered. Links between participation and equality at work, an element which is often

    overlooked in accounts of the subject, are also considered from perspectives of gender,

    work-life balance, age and disability. Finally, the report considers the policy implications

    and limitations of different approaches and suggests areas where policy developments

    could be undertaken.

    The report confirms that participation continues to be a contested area. It also suggests,

    however, that trade unions continue to have an important role in protecting and advancingthe interests of employees and, in so doing, can contribute positively to organisational

    effectiveness.

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    Derek c jones and takao kato (William Davidson institute) worked on the

    effects of employee involvement on firms performance . They had given the

    abstract of their work as follows: We provide some of the most reliable evidence to date on the direct impact of

    employee involvement through participatory arrangements such as teams on

    business performance. The data we use are extraordinary --daily data for rejection,

    production and downtime rates for all operators in a single plant during a 35

    month period, more than 77,000 observations. Our keyfindings are that: (i)

    membership in offline teams initially enhances individual productivity by about

    3% and rejection rates by about 27%; (ii) these improvements are dissipated,

    typically at a rate of 10 to 16% per 100 days in team; (iii) the introduction of teams

    is initially accompanied by increased rates of downtime and these costs diminishover time. In addition: (iv) the performance-enhancing effects of team membership

    are generally greater and more long-lasting for team members who are solicited by

    management to join teams whereas the cost of team membership (increased

    downtime) is smaller and diminishes more rapidly as team members engage in

    learning by doing for such solicited members; similar relationships exist for more

    educated team members. These findings are consistent with the diverse hypotheses

    including propositions that: (i) employee involvement will produce improved

    enterprise performance through diverse channels including enhanced discretionary

    effort by employees; (ii) the introduction of high performance workplace practices

    are best viewed as investments, though there are significant learning effects; (iii)

    differences in performance for team members solicited by mangers compared to

    those who volunteer are consistent with various hypotheses including management

    signaling and opportunistic behavior by employees, but inconsistent with

    hypotheses based on Hawthorne effects; and (iv) various kinds of

    complementarities accompany many changes in organizational design (such as

    between teams and formal education).

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    KOMAL KHALID BHATTI AND TAHIR MASOOD QURESHI , Business

    Administration Department,Mohammad Ali Jinnah university,Islamabad Pakistan

    worked on impact of EMPLOYEE PARTICIPATION ON JOB

    SATISFACTION,EMPLOYEE COMMITMENT AND EMPLOYEE

    PRODUCTIVITY.

    It is widely believed th at the employee participation may affect employees job

    satisfaction; employee productivity, employee commitment and they all can create

    comparative advantage for the organization. The main intention of this study was to find

    out relationship among employee participation, job satisfaction, employee productivity

    and employee commitment. For the matter 34 organizations from Oil & Gas, Banking and

    Telecommunication sectors were contacted, of which 15 responded back. The findings of

    this study are that employee participation not only an important determinant of job

    satisfaction components. Increasing employee participation will have a positive effect on

    employees job satisfaction, employee commitment and employee productivity. Naturally

    increasing employee participation is a long term process, which demands both attention

    from management side and initiative from the employee side.

    YUSUF NOAH,DEPARTMENT OF SOCIOLOGY,UNIVERSITY OF

    ILORIN,NIGERIA worked on A STUDY OF WORKER PARTICIPATION IN

    MANAGEMENT DECISION MAKING WITHIN SELECTED

    ESTABLISHMENTS IN LAGOS, NIGERIA.

    AB S TRACT: Thi s paper is concerned with an investigation of the existing level of

    worker participation inmanagement decision making within the Nigerian work

    environment. The study involved a survey in which a total of two hundred and twenty

    seven (217) non management employees drawn from two work organizations in Lagos

    (Flour Mills Nigeria Plc and Niger Insurance Plc) were used as subjects. Interview

    schedule and in-depth interview were the main research techniques adopted for data

    collection while percentage distribution and chisquare statistical techniques were used to

    analyze the data collected for the study. Results show that employees in both

    organizations demonstrate a high interest in participation in the decision making process

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    within their respective work places. However, the actual level of involvement in

    management decision making demonstrated by the employees was found to be relatively

    low. There is significant relationship be tween education and employees involvement in

    decision making at Flour Mills Nigeria Plc. In Niger Insurance Plc, there is a significant

    relationship between age and employees involvement in decision making as well as

    between frequency of employees consu ltation and organizational commitment. The study

    reveals a growing desire of non-management employees in the Nigerian work

    environment to exercise greater involvement in the decision making process of their

    enterprises.

    Employee participation and company performance:The effects of participation schemes vary with the environment into which they are introduced. An insecure workplace environment may induce employees' compliance withparticipation measures, but may not achieve the commitment needed for attitude changes.

    Links between participation and attitude change appear to depend on the degree of influence granted to employees under participation measures. Low degrees of perceivedinfluence are unlikely to produce positive results. However, middle management appearsto resist participation initiatives which are perceived as reducing their influence orauthority, thus posing an obstacle to the success of participation programmes.

    A combination of financial and work -related participatory measures can have a positiveimpact on company performance as employees do not all react to participation initiativesin the same manner. Some respond well to financial initiatives and others to more work-related elements.

    Assumptions that participation measures affect all employees identically, regardless of gender, race, age and contractual status, can amplify social disadvantage. Disadvantagedgroups, such as older workers, disabled people and those with caring commitments, mayhave only a restricted voice at work.

    In terms of the work -life balance and family-friendly working, employees' voices remainmuted. They tend to have a weak collective voice in larger organizations, whereas in somesmaller firms individuals can sometimes negotiate flexible working arrangements.

    The researchers conclude that a combination of participation and welfare measures (suchas equal opportunities and family-friendly policies) appears to enhance organizational

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    performance and the quality of working life. Policy support should focus on unionrecognition and activity within a human rights framework, since this can positivelyinfluence employees' behavior towards organizational goals.

    BACKGROUND

    Economic changes in recent decades have required employers to seek more efficient andflexible means of production. Deregulation and privatization have also significantlyaltered the UK's industrial relations climate, with a decline in trade unions' influence andmembership. Mirroring this has been the growth in 'new' forms of work-relatedparticipation by employees, under the banner of human resource management andassociated programmes and strategies for partnership and high commitment.

    Governments must balance the needs of a competitive economy with the welfare of their

    citizens. A change in political climate has seen social partnership currently beingpromoted by all interested parties. Reflecting this change, the inclusion of trade unions ingovernment consultation exercises is significant.

    Against this background, the three main rationales for introducing employee participationare based upon different economic, social and political assumptions:

    Economic - changes in employees' attitudes and behavior are achieved through financialparticipation, by offering employees a stake in the firm. Employees' association withmanagement values and goals is thereby increased, and they are more motivated and

    committed to achieving those goals.Social - by catering for employees' social needs, through improved job security andsatisfaction and quality of working life, higher performance is achieved. Alternatively,satisfying social needs can be treated as an end in itself.

    Governmental - current UK policy is to improve national economic efficiency whilealso improving the experience of work for employees. This study formed part of theJoseph Rowntree Foundation's Work and Opportunity programme. The researchersreviewed the literature on employee participation.

    Does participation work?

    Not all the literature agrees on the universal, positive effects of participation. Somesuggests that participation may have no effect or even negative effects on performance.However, it is difficult to discern a definitive pattern. Lack of consistency in the outcomes

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    of participatory measures suggests that schemes are not isolated from the effects of theexternal economic, political and social environment.

    Attitude change

    Participatory measures such as team working and high-involvement work practicesdemonstrate improvements in performance, but can also have less positive outcomes foremployee and social well-being. Performance changes may occur because participationleads to changed attitudes which lead to higher performance. Alternately, changes tobehavior and performance may be achieved not through attitude changes but through fearand an insecure or intensified work environment.

    One explanation for these contradictory results is that participation schemes aresometimes introduced as part of restructuring packages. When employees are faced with

    an insecure environment, participation may induce compliance and not the attitudechanges necessary for employees' commitment to the enterprise. If this is so, behavioralchanges may not be of the order anticipated. The degree of influence accorded toemployees is also important. Low levels of participation with little employee autonomyhave been identified as a reason for disappointing results. Where employees' expectationshave been raised by introducing participation, but there is little real improvement inemployee influence, workers may express resentment and dissatisfaction. Whereparticipation is only from the top down, workers may feel that they are being lectured andnot listened to. Even where participation is from the bottom up, workers may feel thatmanagement is using their ideas, with no return seen by employees. High levels of participation also have their own problems. Some authors claim that employees do notmake hard decisions, opting for outcomes that maximize income, not profit. Others claimthat employees are not able to discipline co-workers, and that decision-making takes toolong. From the management perspective, high degrees of employee influence may meanthat managers' input in decision-making is reduced. Whether from concern that theirauthority is being compromised or through dilution of the decision-making process, thismay result in reduced competitiveness.

    Participation can also be categorized as individual versus collective. Individualized formsof participation may clash with existing collective arrangements and fail to induce aharmonious climate. Concerns have also been expressed over individualized financialparticipation, and a fall in share prices could make it harder to attract high-quality staff.Collective participation, on the other hand, can work with existing labour-relationschannels and attitudes in a productive way. The role of trade unions therefore continues tobe significant.

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    However, collective participation is no guarantee of positive attitude change. Managementalso has to accept the ethos of participation, and middle and supervisory management is aparticularly difficult group to influence.

    Combining participation measures

    The potential for positive impact on performance seems to arise when participationmeasures are used in combination, either as financial and work-related participation, or asrepresentative and direct participation. Either combination may act upon employeeperceptions, encouraging high-trust relations within the workplace and allowingemployees with different motivations to enjoy the benefits of participation. Employees arenot a homogeneous group responding identically to participation initiatives. Differentemployees have different motivations: some respond to financial incentives and others tomore social or work-related ones. This is why a combination of financial and work-related participation appears to have a positive effect on performance.

    Transferability

    A further issue is the transferability of participation schemes, particularly between largeand small firms. It is uncertain whether participation schemes suitable for large firms willhave positive effects in smaller companies, or whether participation measures can betransferred between industrial sectors and even between different national conditions. For

    example, the success of Japanese profit-sharing and other involvement techniques hasbeen accounted for by Japan's unique culture, which emphasizes mutual obligations byemployee and employer.

    Workplace equality

    Questions arise concerning the benefits of participation measures to workplace equality.

    Work-related participation can place a premium on social factors such as ability to

    communicate and the time available to commit to participation. Participation can thereforeamplify social advantage and, by the same token, social disadvantage; for example, caringresponsibilities may mean that some employees have relatively less time to attendmeetings.

    In addition, some schemes may be based upon questionable assumptions about employees- for example, that women are sometimes less committed to work and perhaps less willing

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    to participate. However, a number of studies have refuted this assumption. Otherpotentially excluded groups also suffer from amplified disadvantage, including ethnicminorities, single parents, agency workers and temporary workers, with possibly limitingeffects on their capacity and opportunity for participation.

    Discrimination

    Less advantaged groups and individuals, such as older workers, ethnic minorities anddisabled people, may have a restricted 'voice' within the workplace. Coupled with greateremployment insecurity, this can permeate workers' performance through frustration andimpotence, with a negative impact on both organizational performance and quality of working life.

    The evidence indicates that participation schemes in tandem with welfare measures - such

    as equal opportunities and family-friendly policies - improve organizational performanceand the quality of working life. By contrast, perceptions of unfairness have a negativeimpact.

    Employee participation and family-friendly working

    Some studies which have examined the business consequences of implementing family-friendly employment policies have found benefits in doing so. Others have tried todetermine whether employees have a voice over work-life issues, and how instrumental itmight be in establishing family-friendly employment policies.

    Employees appear to have a voice of some kind in larger organizations. It tends to becollective, and expressed through trade unions or staff associations. Smaller enterprisestypically lack collective means of expression, though there can be direct communicationbetween individual employees and their employers over flexible working. Some studieshave reported individuals negotiating informal arrangements with their managers in smalland medium-sized enterprises to suit their individual circumstances, but not all employeeshave a powerful enough voice to achieve this.

    Family-friendly policies appear to be more widespread and deeply embedded inenterprises which recognize unions, though this association does not imply that unionshave a more effective voice. Various studies have confirmed the low-key role of tradeunions. Consultation - even with and among line managers - also appears to be ratherrestricted, with the possible exception of health services, where there is an organizationalcultural tradition of consultation.

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    However, the major factor influencing employers to implement or extend family-friendlypolicies appears not to be collective or individual employee pressures, but labour-marketconditions backed by minimal statutory requirements. The management of time is anessential workplace process over which employees - especially those with domesticresponsibilities - need a measure of control in order to combat tensions between thedemands of work and home. Despite some softening of the political climate towards tradeunions and scarcity of labour in some sectors, there is little evidence that employees,collectively or individually, have been able to make any significant impression on thework-life agendas of companies, even with evidence that there can be a business case forsuch policies. It also seems that some managers continue to adopt a gendered and possiblymarginalized perspective of work-life issues. Research has also shown that long workinghours - another major dimension of work-life conflict - have scarcely been touched by theWorking Time Regulations or high-profile concerns expressed in the media andelsewhere. In terms of the work-life balance and family-friendly working, the evidence

    suggests that the voices of employees remain muted.Policy implications

    The extent of current political support for employee participation is mixed. At times itappears uncoordinated or even contradictory, as evidenced by the Government'sambiguous stance towards greater European influence over participation practice andwork reforms such as the Working Time Directive. In addition, work-related participationpolicies focus on efforts to promote collective (though not necessarily trade union-based)participation through measures such as social partnership, while financial participationlegislation leans towards individualized programmes. Current policy appears to be tryingto appease both employers' and to a lesser extent trade union aspirations, thoughinitiatives to date seem to point to the former direction.

    This apparent lack of co-ordination of policy will have a disproportionate impact on smallfirms. Small firms are less likely to introduce work-related participation measures thanlarger companies, therefore providing few opportunities to access the positive effects of combining participation schemes.

    On top of this, the Employment Relations Act 1999 works against the development of collective participation in small firms through the exclusion of enterprises with 20

    employees and under from union recognition rights. This possibly excludes up to fivemillion workers in the UK. Since the quality and quantity of welfare policies areassociated with trade union presence, small firms and their employees could be missingout on the positive effects of combining participation and welfare schemes. Furthermore,the introduction of European Works Councils (EWC) applies only to large, complexenterprises with specific cross-European operations. Here, policy needs to focus on the

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    training of EWC delegates in order to realize the positive effects of participation. Thereare also some areas where the reach of policy is limited. Participation measures are notisolated from the effects of the external environment. Economic fluctuations have animpact on share prices, for instance, and the voluntary nature of many participationschemes means that they are vulnerable to cost-saving exercises. In addition, there arediscrepancies between how a policy is conceived at national or organizational level andhow it is interpreted at company or workplace level. "People don't leave their jobs, theyleave their managers."

    Although committed and loyal employees are the most influential factor to becoming anemployer of choice, it's no surprise that companies and organizations face significantchallenges in developing energized and engaged workforces. However, there is plenty of research to show that increased employee commitment and trust in leadership canpositively impact the company's bottom line. In fact, the true potential of an organizationcan only be realized when the productivity level of all individuals and teams are fullyaligned, committed and energized to successfully accomplish the goals of theorganization.

    As a result, the goal of every company should be to improve the desire of employees tostay in the relationship they have with the company. When companies understand andmanage employee loyalty - rather than retention specifically - they can reap benefits onboth sides of the balance sheet i.e., revenues and costs.

    On the revenue side of the balance sheet, loyal and committed employees are more likelyto go "above and beyond" to meet customer needs and are highly motivated to work to the

    best of their ability. Both of these traits are crucial for continued customer commitmentand ongoing revenue and growth for the company. On the cost side, loyal employees staylonger, resist competitive job offers, do not actively look for other employment andrecommend the company to others as a good place to work. These four behaviorspositively influence the cost side of the balance sheet because they are leading indicatorsof employee retention. The longer companies keep their employees, the longer they canavoid having to pay to replace them.

    In other words, rather than focusing only on retention (that is, trying to retain employeeswho have already decided to leave), organizations should proactively recognize the

    benefits of understanding, managing and improving employee loyalty. The mostsuccessful organizations are those that can adapt their organizational behavior to therealities of the current work environment where success is dependent upon innovation,creativity and flexibility. Additionally, the dynamics of the work environment have toreflect a very diverse population comprised of individuals whose motivations, beliefs andvalue structures differ vastly from the past and from each another. Arguably, the most

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    valuable, but also volatile, corporate asset is a stable workforce of competent, dedicatedemployees, since such an employee base gives companies a powerful advantage; depth of knowledge and organizational strength.One of the key steps to understanding andimproving employee loyalty is by acknowledging the importance of the following factorsin building loyalty and satisfaction:

    Broadly-defined responsibilities rather than narrowly-defined job functions Effective andregular performance evaluations, both formally and informally A corporate emphasis onemployee learning, development and growth Wide-ranging employee participation in theorganization as a whole Typically, a combination of factors influences employees'decisions to stay at their current job. Contributing factors include satisfying work, a senseof job security, clear opportunities for advancement, a compelling corporate missioncombined with the ability to contribute to the organization's success, and a feeling thattheir skills are being effectively used and challenged. Specifically, employees who enjoytheir work, identify themselves with their employer and perceive that the company isflexible regarding work and family issues also intend to stay with the organization.

    Today, employee loyalty needs to be earned, rather than assumed, and must be specific,rather than general - employees are looking at their employment as a means of achievingpersonal goals rather than simply being the "good corporate soldier" of the past. Thismeans that companies need to express and act on a commitment to develop employees'career objectives by introducing initiatives that make employees believe that their current

    job is the best path to achieving their career goals.

    In particular, consider the following elements of effective strategies designed to build

    loyalty and retain key employees:

    Include opportunities for personal growth and invest heavily in the professionaldevelopment of the best people in the organization.

    Provide employees with well-defined career paths (including a succession plan), mentorsand tuition reimbursement for job-related education.

    Train employees, even if it makes them more attractive to the competition. Without seeingan opportunity on the horizon, few high potential employees will stay with a company andallow themselves to grow stagnant.

    Acknowledge non-work priorities by recognizing and responding to employees' needs forgreater balance in their lives, since employees will develop loyalty for organizations thatrespect them as individuals, not just as workers.

    Another approach to the issue of loyalty is to consider the value of the five "I's":

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    Interesting work. No one wants to do the same boring job over and over, day after day.Although any job will require some repetitive tasks, all jobs should include at least someparts that are of high interest to employees.

    Information. Information is power and employees want to have the information they need

    to know to do their jobs better and more effectively. And, more than ever, employeeswant to know how they are doing in their jobs and how the company is performingoverall. It is vitally important to open the channels of communication in an organization toallow employees to be informed, ask questions, and share information and to inspire themto share the vision of the company.

    Involvement. Managers today are faced with an incredible number of opportunities andproblems and, as the speed of business continues to increase, the amount of time that theyhave to make decisions continues to decrease. Involving employees in decision-making,especially when the decisions affect them directly, is both respectful and practical. Not

    only do those closest to the problem typically have the best insight as to what to do,involving them in decision-making will increase their commitment and improve thesuccess of implementing new ideas or change. Similarly, management needs to followthrough on promises and live the values they preach.

    Independence. Few employees want their every action to be closely monitored. Mostemployees appreciate having the flexibility to do their jobs as they see fit. Givingemployees latitude increases the chance that they will perform as desired, as well asbringing additional initiative, ideas, and energy to their jobs. Employees also need to beencouraged to achieve their best potential.

    Increased visibility. Everyone appreciates getting credit when it is due. The occasions toshare the successes of employees with others are almost limitless. Giving employees newopportunities to perform, learn, and grow as a form of recognition and thanks is highlymotivating for most people.

    Another important strategy for improving loyalty is to implement a systematic process of performance reviews, since effective reviews can simultaneously increase employeemorale and productivity. To achieve their primary objectives, such as improving theworking relationship between employee and supervisor, performance reviews should bestructured so as to:

    Accurately define the employee's job description, including a focus on the skills mostimportant to the employee's job

    Discuss the job skills the employee performs well on and identify areas that needimprovement so as to fairly summarize their most recent job performance

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    Set mutual and worthwhile goals, which are the heart of a professional growth planProvide useful coaching to improve the employee's performance

    With these objectives, performance reviews can make an important and ongoingcontribution to furthering each employee's career. Related to the role of performance

    reviews, another important influence on employee satisfaction is a sense of being led bycapable management, with both immediate supervisors and senior management having aclear sense of direction for the organization. One of the forces that disconnects employeesfrom their companies is management's ever-changing corporate focus. By introducing yetanother corporate initiative, employees come to question the credibility of managementand the focus of the company. They begin to wonder what the company stands for, whereit's going, and if the latest initiative is yet another "here today, gone tomorrow" program.

    Employees are therefore skeptical at best - and cynical at worst - about their company'sperpetually shifting focus. Without a constant, long-term strategic vision, organizations

    risk confusing, bewildering, depressing and disconnecting with their employees. Withinan environment of ever-changing focus, employees find it hard to see a strong link between their role and the company's core purpose. Alternatively, communicating acompany's shared vision and establishing a shared mission with employees are importantmeans of enhancing employee commitment. Employees feel a stronger sense of jobsatisfaction when they agree with the strategic decisions, especially when they areinvolved in developing the strategic direction.

    In addition to establishing and communicating a strategic vision for the company, loyaltyalso requires building a partnership between management and employees and creating an

    environment of mutual respect, involvement and open communication. Maintaining openlines of communication with employees will enable senior management to keep up withtheir changing needs into the future.

    Recent studies have shown that managers, whether front-line supervisors, project leaders,team captains or senior management, actually have more power than anyone else toreduce unwanted employee turnover because the most important factors driving employeesatisfaction and commitment are largely within the direct manager's control. Theseinclude providing recognition and feedback regularly, offering opportunities to learn andgrow, helping to ensure fair compensation reflecting an employee's contributions and

    value to the organization, fostering a good work environment, and above all, recognizingand respecting the uniqueness of each employee's competencies, needs, desires andworking style.

    At the supervisory level, though, managers also need to strike the right balance of using amore employee-centered leadership style, under which their employees are welcome toparticipate in making decisions (i.e., "leadership through collaboration"), but

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    withoutgoing so far as to abdicate responsibility for decision-making. When theparticipatory approach becomes excessive, employees may feel that they are being givenmore responsibility than their positions should require and, thus, can feel overworked orunderpaid for the work expected.

    It is also critically important to recognize that, when employees indicate the intention toleave, they generally do - this means that attrition can be predicted through surveymeasurement, which gives employers an important "window of opportunity" to foreseeand address talent loss within specific departments so as to change the environment that iscausing employees to leave. Research has indicated that the biggest gaps between thosewho intend to stay and those who intend to leave can be best summarized as (1) theopportunity for employees to use their skills effectively and (2) differing perceptions of the leadership ability of senior management. In conjunction with these key differences,projections have shown that improvements in the areas directly related to turnover canlead to a potential 5% decrease in actual turnover, which has real financial benefits for theorganization.

    Did you realize that employees change jobs more for career options and trainingopportunities than they do for money and benefits? In fact, seeking opportunities for thelong term rather than just the current job has much more influence over job change thanmonetary compensation - it is evident that money is a satisfier, but not a driver, of employee loyalty. Similarly, it is not salary that makes a committed employee.Compensation packages, while important, have become secondary to the employees'desire to be challenged, to contribute, to be recognized and to know how they will fit intothe organization.

    However, this is not to claim that pay and benefits are unimportant. There are strongcorrelations between compensation, benefits plans and employee commitment. It shouldnot be surprising, though, that the compensation plans with the strongest link to employeecommitment are those that give employees a stake in the future success of theorganization. Compensation plans in general help drive commitment when employeesunderstand the program and believe it to be fair. It is also worth noting that the way anorganization distributes money indicates what management really wants including sendinga message to employees as to whether the company truly pays for performance.

    In short, then, there are five actions organizations should take to reduce attrition andimprove employee satisfaction:

    Demonstrate to employees that the company cares about them, wants them to advance intheir careers and will help them satisfy their need for personal growth.

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    "Walk the talk" by not only communicating the corporate strategy but by also ensuringthat it is applied consistently throughout the organization, including making the rewardssystem consistent with strategic goals. Watch for and eliminate all inconsistenciesbetween promoting a belief in employees and managerial behavior or policies thatundermines that commitment. Fight attrition with smart training that is not only relevantbut helps broaden employee experiences and provides development opportunities. Weedout poor managers because many employees leave their jobs because they are unhappywith their bosses - remember the adage that "people don't leave their jobs, they leave theirmanagers."

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    RESEARCH METHODOLOGY

    MEANING OF RESEARCH

    Research in common parlance refers to a search for knowledge. Once can also define

    research as a scientific and systematic search for pertinent information on a specific topic.In fact, research is an art of scientific investigation. Th e Advanced Learners Dictionaryof Current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge.1 Redman andMory define research as a systematized effort to gain new knowledge.2 Some peopleconsider research as a movement, a movement from the known to the unknown. It isactually a voyage of discovery. We all possess the vital instinct of inquisitiveness for,when the unknown confronts us, we wonder and our inquisitiveness makes us probe andattain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of

    whatever the unknown, can be termed as research.

    OBJECTIVES OF RESEARCH

    The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden andwhich has not been discovered as yet. Though each research study has its own specificpurpose, we may think of research objectives as falling into a number of following broadgroupings:

    1. To gain familiarity with a phenomenon or to achieve new insights into it (studies withthis object in view are termed as exploratory or formulative research studies);

    2. To portray accurately the characteristics of a particular individual, situation or agroup(studies with this object in view are known as descriptive research studies);

    3. To determine the frequency with which something occurs or with which it is associatedwith something else (studies with this object in view are known as diagnostic researchstudies);

    4. To test a hypothesis of a causal relationship between variables (such studies are knownas hypothesis-testing research studies).

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    TYPES OF RESEARCH

    The basic types of research are as follows:

    (i) Descriptive vs. Analytical: Descriptive research includes surveys and fact-findingenquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quiteoften use the term Ex post facto research for descriptive research studies. The maincharacteristic of this method is that the researcher has no control over the variables; he canonly report what has happened or what is happening. Most ex post facto research projectsare used for descriptive studies in which the researcher seeks to measure such items as, forexample, frequency of shopping, preferences of people, or similar data. Ex post factostudies also include attempts by researchers to discover causes even when they cannotcontrol the variables. The methods of research utilized in descriptive research are surveymethods of all kinds, including comparative and correlation methods. In analytical

    research, on the other hand, the researcher has to use facts or information alreadyavailable, and analyze these to make a critical evaluation of the material.

    (ii) Applied vs. Fundamental: Research can either be applied (or action) research orfundamental (to basic or pure) research. Applied research aims at finding a solution for animmediate problem facing a society or an industrial/business organization, whereasfundamental research is mainly concerned with generalizations and with the formulationof a theory. Gathering knowledge for knowledges sake is termed pure or basicresearch.4 Research concerning some natural phenomenon or relating to puremathematics are examples of fundamental research. Similarly, research studies,

    concerning human behavior carried on with a view to make generalizations about humanbehavior, are also examples of fundamental research, but research aimed at certainconclusions (say, a solution) facing a concrete social or business problem is an example of applied research. Research to identify social, economic or political trends that may affecta particular institution or the copy research (research to find out whether certaincommunications will be read and understood) or the marketing research or evaluationresearch are examples of applied research. Thus, the central aim of applied research is todiscover a solution for some pressing practical problem, whereas basic research is directedtowards finding information that has a broad base of applications and thus, adds to thealready existing organized body of scientific knowledge.

    (iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitativephenomenon, i.e., phenomena relating to or involving quality or kind. For instance, whenwe are interested in investigating the reasons for human behavior (i.e., why people think

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    or do certain things),we quite often talk of Motivation Research, an important type of qualitative research. This type of research aims at discovering the underlying motives anddesires, using in depth interviews for the purpose. Other techniques of such research areword association tests, sentence completion tests, story completion tests and similar otherprojective techniques. Attitude or opinion research i.e., research designed to find out howpeople feel or what they think about a particular subject or institution is also qualitativeresearch. Qualitative research is especially important in the behavioral sciences where theaim is to discover the underlying motives of human behavior. Through such research wecan analyze the various factors which motivate people to behave in a particular manner orwhich make people like or dislike a particular thing. It may be stated, however, that toapply qualitative research in practice is relatively a difficult job and therefore, while doingsuch research, one should seek guidance from experimental psychologists.

    (iv) Conceptual vs. Empirical: Conceptual research is that related to some abstractidea(s) or theory. It is generally used by philosophers and thinkers to develop newconcepts or to reinterpret existing ones. On the other hand, empirical research relies onexperience or observation alone, often without due regard for system and theory. It isdata-based research, coming up with conclusions which are capable of being verified byobservation or experiment. We can also call it as experimental type of research. In such aresearch it is necessary to get at facts firsthand, at their source, and actively to go aboutdoing certain things to stimulate the production of desired information. In such a research,the researcher must first provide himself with a working hypothesis or guess as to theprobable results. He then works to get enough facts (data) to prove or disprove hishypothesis. He then sets up experimental designs which he thinks will manipulate the

    persons or the materials concerned so as to bring forth the desired information. Suchresearch is thus characterized by the experimenters control over the variables under studyand his deliberate manipulation of one of them to study its effects. Empirical research isappropriate when proof is sought that certain variables affect other variables in some way.Evidence gathered through experiments or empirical studies is today considered to be themost powerful

    To conduct any research a scientific method must be followed. The universe of study isvery large in which it is difficult to correct information from all the employees. So, thesampling method has been followed for the study. The analysis is based on primary as

    well as secondary data.Research methodology is used to solve out all systematic problems of the research. In thisstudy, first the logic behind the problem has been clearly analyzed and then the conclusionis given according to the general procedure. It is not only used, to know about the researchmethods or technique but also to gain knowledge about the various dimensions of methodologies. Research design is the general process that guides the data analysis of the

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    project and it brings the research under a descriptive of methodology. The major purposeof the descriptive research is to analyze the data collection primarily and to make varioussuggestions to the research for a conclusive result. Then the conclusive research is madeto analyze the actual result of the research from the expected quality. Thus the descriptiveand conclusive research design is used for this research.

    An undisguised structured questionnaire is used for this research as it convinced therespondent by providing more comfort in responding for the questions raised by theresearcher. The question, which comes under this questionnaire, made the respondent tounderstand the question clearly. Moreover multi-choice question and rank questions werebeen raised in the questionnaire and the analysis of these questions were been carried outby the research work of the researcher.

    SAMPLING DESIGN:

    Sample in a selection of units from the entire group called the Universe of interest. Asample in a particular segment, which focuses the decisions which can be applied to theentire organization. The units included in the sample can be easily approached to obtainthe desired information for taking decisions. Here the survey is mainly used for theparticular Employee of the organization in order to make the sample in a compensativemanner.

    SAMPLING PROCEDURE:

    In sampling procedure the survey is mainly done to selected employees who aredepending upon the lines. As here when the personal interview method is clubbed withstructured questionnaire made the survey technique to be easier and comfortable for theresearcher and the survey was conducted to 75 employees of the organization.

    Sampling technique used = Simple random sampling

    SAMPLING SIZE:

    The sampling size includes most of the employee who depend on lines training anddevelopment as it includes more then hundred employees who depend on lines where 75are trained category, 20 are in training and 5 given training and developing stage.

    Total sample size = 120

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    STATISTICAL & TOOLS USED:

    ANOVA

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    EMPERICAL RESULT

    TABLE - 1

    AGE COMPOSITION

    AGE NO.OF RESPONDENTS PERCENTAGE

    BELOW 30 46 38.3340 40 33.34ABOVE 40 34 28.33TOTAL 120 100

    INTERPRETATION

    From the above tabulation it is observed that 38.33% of the respondents belong to agegroup of below 30, 33.34% of the respondents belong to 31-40 age group and 28.33% of the respondents are in age group of above 40.

    38%

    34%

    28%

    AGE COMPOSITION

    Below 30 30-40 Above 40

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    TABLE -2

    SEX WISE CLASSIFICATION

    INTERPRETATION

    From the above tabulation it is observed that 73.33% of the respondents are males and26.67% of respondents are Females.

    73%

    27%

    SEX WISE CLASSIFICATION

    MALE FEMALE

    SEX NO.OF RESPONDENTS PERCENTAGE

    MALE 88 73.33FEMALE 32 26.67TOTAL 120 100

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    TABLE-3

    DELEGATION OF WORK

    COMPANY NO.OF RESPONDENTS PERCENTAGE

    FAIRLY 61 50.83NOT FREQUENTLY 43 35.84NOT AT ALL 16 13.33TOTAL 120 100

    INTERPRETATIONFrom the above tabulation it is observed that 50.83% of respondents feel that thedelegation of work is done in a fair manner, 35.84% of respondents feel delegation is notdone frequently and the remaining 13.33% of respondents feel there is no delegation of work.

    51%

    36%

    13%

    DELEGATION OF WORK

    FAIRLY NOT FREQUENTLY NOT AT ALL

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    TA BLE - 4

    TYPE OF TRAINING PREFERED BY THE EMPLOYEES

    INTERPRETATION :- From the above tabulation it is observed that the maximumpreference of the respondents in the lines is due to the high quality of freight servicesprovided by them. And the remaining, services do not make much difference from theinflation.

    34%

    18%14%

    10%

    12%

    14%

    TYPE OF TRAINING PREFERED BY THE

    EMPLOYEES

    IN HOUSE TRAINING PROMOTIONAL TRAINING SPECIAL TRAINING

    ROLE PLAY DISCUSSION TRAINING IN HOUSE TRAINING

    TYPE NO.OF RESPONDENTS PERCENTAGE

    IN HOUSE TRAINING 41 34.16PROMOTIONALTRAINING

    21 17.50

    SPECIAL TRAINING 17 14.17ROLE PLAY TRAINING 12 10.00DISCUSSION TRAINING 14 11.67IN HOUSE TRAINING 15 12.50TOTAL 120 100

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    TABLE-5

    EMPLOYEE FEEDBACK OF MANAGERS

    PERCEPTION NO.OF RESPONDENTS PERCENTAGEEXCELLENT 61 50.83GOOD 43 35.84AVERAGE 16 13.33TOTAL 120

    INTERPRETATION

    From the above tabulation it is observed that most of them prefer the Booking ProcessingServices so it is awarded rank I and the remaining are the other ranks.

    51%36%

    13%

    EMPLOYEE FEEDBACK OF MANAGERS

    EXCELLENT GOOD AVERAGE

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    TA BLE - 6

    EMPLOYEE PERCEPTION ABOUT THE COMPANY

    PERCEPTION NO. OFRESPONDENTS

    PERCENTAGE

    EXCELLENT 38 31.67GOOD 73 60.83AVERAGE 9 7.50TOTAL 120 100

    INTERPRETATION From the above tabulation it in observed that out of the total respondents60.83% feel that the company is excellent and 31.67% expected that it is good and only 7.50%expected that it is average.

    32%

    61%

    7%

    EMPLOYEE PERCEPTION ABOUT THECOMPANY

    EXCELLENT GOOD AVERAGE

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    TA BLE - 7

    EMPLOYEE PERCEPTION ABOUT GROWTH IN THE ORGANIZATION

    INTERPRETATION

    From the above table it is analyzed that out of total respondents 57.50% feel that there isexcellent growth in the company, 36.67% feel there is good growth opportunities and only5.83% feel it is average.

    37%

    57%

    6%

    EMPLOYEE PERCEPTION ABOUT GROWTH IN

    THE ORGANIZATION

    EXCELLENT GOOD AVERAGE

    PERCEPTION NO. OF RESPONDENTS PERCENTAGE

    EXCELLENT 44 36.67GOOD 69 57.50AVERAGE 7 5.83TOTAL 120 100

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    TABLE - 8

    EMPLOYEE PERCEPTION ABOUT TRAINING AND DEVELOPMENT

    PERCEPTION NO.OF RESPONDENTS PERCENTAGE

    EXCELLENT 10 8.33GOOD 89 74.17AVERAGE 21 17.50TOTAL 120 100

    INTERPRETATION

    From the above table it can be inferred that out of the total respondents 74.17% feel the trainingand development programme is excellent , 17.50% feels it is good and 8.33% feels it is average.

    8%

    74%

    18%

    EMPLOYEE PERCEPTION ABOUT TRAINING

    AND DEVELOPMENT

    EXCELLENT GOOD AVERAGE

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    TABLE 9

    EMPLOYEE PERCEPTION ABOUT TEAM WORK

    PERCEPTION NO.OF RESPONDENTS PERCENTAGE

    EXCELLENT 36 30.00GOOD 82 68.33AVERAGE 2 1.67TOTAL 120 100

    INTERPRETATION

    From the above table it is observed that 68.33% of respondents feel that the team work isexcellent , 30% of respondents feel it is good and only 1.67% feel it is average.

    30%

    68%

    2%

    EMPLOYEE PERCEPTION ABOUT TEAM WORK

    EXCELLENT GOOD AVERAGE

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    TABLE - 10

    EMPLOYEE PERCEPTION ABOUT TREATMENT OF EMPLOYEES

    PERCEPTION NO.OF RESPONDENTS PERCENTAGE

    EXCELLENT 21 18.33GOOD 74 72.50AVERAGE 25 9.17

    TOTAL 120 100

    INTERPRETATION :- From the above table it can be inferred that out of total respondents72.50% feel that the employees are treated fairly , 18.33% feel that the employees are treatedexcellently and only 9.17% feel that the employees feel average.

    18%

    73%

    9%

    EMPLOYEE PERCEPTION ABOUT TREATMENT

    OF EMPLOYEES

    EXCELLENT GOOD AVERAGE

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    TABLE - 11

    EMPLOYEE PERCEPTION ABOUT THE WORK ENVIRONMENT

    INTERPRETATION

    From the above table it is observed that 77.50% of respondents feel that the work environment isgood, 13.33% of respondents feel it is average and only 9.17% feel it is excellent.

    9%

    78%

    13%

    EMPLOYEE PERCEPTION ABOUT THE WORK

    ENVIRONMENT

    EXCELLENT GOOD AVERAGE

    PERCEPTION NO.OF RESPONDENTS PERCENTAGE

    EXCELLENT 11 9.17GOOD 93 77.50AVERAGE 16 13.33TOTAL 120 100

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    TABLE 12

    EMPLOYEE PERCEPTION ABOUT FOOD AND TRANSPORTFACILITIES

    PERCEPTION NO.OF RESPONDENTS PRCENTAGE

    EXCELLENT 26 21.6GOOD 81 67.50AVERAGE 13 10.83TOTAL 120 100

    INTERPRETATION

    From the above table it can be inferred that out of total respondents 67.50% feel that the foodand transport provided is good, 21.67% feel it is excellent and only 10.83% feel it is average.

    22%

    67%

    11%

    EMPLOYEE PERCEPTION ABOUT FOOD AND

    TRANSPORT FACILITIES

    EXCELLENT GOOD AVERAGE

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    TABLE - 13

    EMPLOYEE PERCEPTION ABOUT SANITATION FACILITIES ANDSHIFT TIMINGS

    PERCEPTION NO.OF RESPONDENTS PERCENTAGEEXCELLENT 43 35.83GOOD 71 59.17AVERAGE 6 5.00TOTAL 120 100

    INTERPRETATION

    From the above table it can be inferred that out of total respondents 59.17% feel that thesanitation facilities and shift timings are good, 35.83% feel it is excellent and only 5% feel it isaverage.

    36%

    59%

    5%

    EMPLOYEE PERCEPTION ABOUT SANITATION

    FACILITIES AND SHIFT TIMINGS

    EXCELLENT GOOD AVERAGE

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    TABLE - 14

    EMPLOYEE PERCEPTION ABOUT THE LEADERSHIP AND

    PLANNING

    INTERPRETATION

    From the above table it can be inferred that it out of total respondents 63.33% feel that theleadership and planning in the organization is good, 31.67% feel that is excellent and 5% feelthat it is average.

    32%

    63%

    5%

    EMPLOYEE PERCEPTION ABOUT THE

    LEADERSHIP AND PLANNING

    EXCELLENT GOOD AVERAGE

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    TABLE - 15

    EMPLOYEE OVERALL SATISFACTION LEVEL

    PERCEPTION NO.OF RESPONDENTS PERCENTAGEABOVE EXPECTATION 12 10.00UPTO MY EXPECTATION 88 73.33BELOW EXPECTATION 20 17.67TOTAL 120 100

    INTERPRETATION

    From the above table it can be inferred that out of total respondents 73.33% are overall satisfiedwith the company , 17.67% they are not satisfied and only 10% feel it is above their expectation.

    10%

    73%

    17%

    EMPLOYEE OVERALL SATISFACTION LEVEL

    ABOVE EXPECTATION UPTO MY EXPECTATION BELOW EXPECTATION

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    DATA ANALYSIS AND DISCUSSION

    ANOVA is the short form of analysis of variance. ANOVA is used when multiplesample cases are involved. Generally, this test can't be used to examine the significance of difference amongst more than two sample means at the same time.

    ANOVA is said to be the statistical procedure for testing the difference amongdifferent groups of data for homogeneity. It is a technique splits the variance of analyticalpurposes.Variance is an important statistical measure and is understood as the mean of thesquare of deviations taken from the mean of the given series. Variance can be derived as thesquare of the Standard Deviation.

    From the given sample, we can find out the variation of each item within the

    sample from the respective Arithmetic mean. This variation is known as "variation within thesample". At the same time the variation of each sample from the Grand mean can be calculatedand named as variation between the samples. These two variations are compared and expressedas a ratio known as "Fishers variance Ratio" named by symbol "F".

    Variance ratio is the ratio, which the greater variance bears to the smaller variance. In otherwords, this ratio is worked out as under F - coefficient as below:

    The following steps derive the procedure in which ANOVA is used forHypothesis test.

    1. Observe the total for the individual items values in all the samples and

    denote it as T.2. Derive the correction factor as under correction factor

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    3. Analyze the squares of all the items and denote the total value as SSQ, which derives the sumof squares. The deduct the correction factor (C.F) from that value in order to find the (sum of squares of the total) SST = SSQ-C.F.

    4. Obtain the square of each sample and divide those square value of sampleby the number of items in the concerning sample and take this total and the result is denoted asSSC sum of square of deviation for v ariance between samples SSC = ( C1/N1+C2 / N2 + C3/N3+....) CF

    5. The sum of squares within the samples, (SSE) can be found out bydeducting the following statement

    SSE = SST - SSC

    6. Find the degree of freedom for SSC & SSE by using the followingformulae.SSS = No of samples - 1SSE = No of items - No of samples

    7. The next step is to find the variance by dividing the sum of squares of deviation by respective degree of freedom.

    8. The value of 'F' is calculated by dividing the greater variance by smallervariance i.e.

    9. The calculated value of F has been compared with table value. In this if the calculated value islesser than the Table value then the null hypothesis (Ho) is accepted.

    When the calculated value