Crisis Blown over

893 Words Oct 24th, 2012 4 Pages
Case Study 4 ± Crisis Blown Over

Ques 1. Do you think that the Bangalore-based company had practiced participative management?
Answer. During such a crisis the company and the union both showed great sense of oneness. They both come together for solving the problem and thus ensured that the employees and the employers both don’t suffer the consequences of the factory being shut for non-production by the workers. Yes, they have practiced participative management. Participative (or participatory) management, otherwise known as employee involvement or participative decision making, encourages the involvement of stakeholders at all levels of an organization in the analysis of problems, development of strategies, and implementation of
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To know what type of participation method was used in the case, lets first know what is a Union? A union is an organization that represents employees¶ interests to management on issues such as wages, work hours and working conditions. Employees participate in administering the union and support its activities with union dues, fees they pay for the union services. The law protects employees¶ rights to join and participate in unions. The law also requires employers to bargain and confer with the union over certain employment issues that affect unionized employees. Involving the employees or the representative of employees (Union) is an element or participative management. Representative participation allows workers to be represented by a small group who actually participate. The goal of representative participation is to redistribute power within the organization. Employees' interests become as important as those interests of management and stockholders.

According to Stephen P. Robbins, author of Essentials of Organizational Behavior,the two most popular forms of representative participation are works councils and board representatives. Works councils are groups of employees who have been elected by their peers and who must be consulted by management when making personnel decisions. Board representatives are employees that sit on the board of directors and represent labor interests.This behavior is also similar
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