Employee Voice Origin and Its Role in the Decision-Making Process - Essay Example

? Employee voice covers “a wide range of processes and structures which allow and even empower employees, directly or indirectly, to contribute to decision making within the organisation".(Rose, 2008,p334). Critically evaluate this view of employee voice. Introduction Employee voice refers to participation of employees in organizations’ decision making process. Traditionally, organizations used trade unions as the primary mechanism for employee voice but today, the business climate is turbulent due to globalization, technological advancements, increased competition, changing nature of work, and pressure from customers to meet their needs. This calls for change in organizations’ strategies to enable the organization to respond to the changes in a timely and flexible manner. To achieve this, an organization needs to gain workforce commitment by enabling them to have a voice on matters that affect them. Employees have, therefore, been empowered through involvement and participation in organization decision making process by the use of direct or indirect voice mechanisms. The paper will discuss the employee voice mechanisms in use today and the outcome of such mechanisms for workers. The employee voice literature began with Hirschman in the 1970s and was further popularised by Freeman and Medoff in the 1980s. Dundon et al (2005) views employee voice as an articulation of individual dissatisfaction, expression of collective organization, contribution to decision making, and mutuality. To articulate dissatisfaction, an individual has only two options according to Hirschman’s exit-voice theory; he can decide to exit or stay and fight from within by voicing his concerns. Hirschman (1970:30) therefore refers to voice as ‘any attempt at all to change rather than escape from an objectionable state of affairs whether through individual or collective petition to management’. It is assumed that the labour market is competitive thus if an individual is not satisfied with an employer’s terms and conditions he can always move to a new employer. This in turn impels the management to review their practices and make amends to avoid more exits. However, a loyal employee opts to remain in the organization and compel the management to change the terms instead of quitting. The role of management is to provide voice mechanisms for workers so as to air their opinions. Freeman and Medoff (1984) built on Hirschman’s theory of exit-voice to emphasize the importance of having a collective voice in organizations especially through trade unions. This form of voice mechanism entails negotiations between employees and employer through the union and has many advantages. The union helps to reduce exits hence retention of qualified staff thus minimising on hiring and training costs. The employment contracts negotiated through collective bargaining also protects the employees’ interests thus enhancing cooperation and job security. The union can also assist the management in introduction of new work practices thus minimising resistance to change (Bennett & Kaufman, 2007). However, unions also can manage to force the organization to increase wages above competitive levels hence a loss to the company. Moreover, most of the workers organized in unions are dissatisfied with their jobs since the union leaders raise their job outcome expectations beyond what is realistic. According to Rose (2007), there is increased decline in unionisation as new sectors emerge hence making unions unrepresentative of employee voice. Many organizations are non-unionized and apply alternative voice mechanisms such as communication, training and development, attitude surveys, financial participation, and quality circles. However, employee voice is driven by various factors. The availability of voice mechanisms in the organization is a key driver of voice as employees can utilise various means to air their grievances but management support is required. For example, the management can put up suggestion boxes to get their opinions and adopt a culture of tolerance (Dundon et al. 2005). The legal framework present in a country is also a key driver of voice. In Britain, companies are required to develop ways of ensuring employee involvement and participation and report the initiatives they have taken to director of companies. The health and safety at work Act also requires companies to ensure safety at the workplace and form health and safety committee. This forces organizations to have health and safety meetings and briefings to discuss various issues regarding safety of workers at the workplace. The work councils and joint consultative committees as voice mechanisms are also a requirement of the law (Gennard & Judge, 2005). Gennard and Judge (2005) divided employee voice mechanisms into four broad categories: communications and briefing systems, task and work groups, financial participation, and representative participation. The communication and briefing systems include team briefings, attitude surveys, and safety meetings, among others. Communication enables exchange of information and instructions from management to employees thus enabling the employees to be well-informed about company’s developments. In this case, the employees are able to know what is expected of them thus reducing dissatisfaction and the possibility of exit among employees. However, the management has to decide on the information to give to employees and how the information will reach employees. Mathieson and Pendleton (2006) acknowledge the use of attitude surveys as an employee voice mechanism. This is an upward form of communication where management collects employees’ views about human resource policies, performance management systems, grievance procedures, and reward systems among others through oral surveys or questionnaires. The information obtained through the survey compels the management to review its policies and procedures to suit employee interests thus reducing exits. Team briefing has also been an efficient method of communicating information from management to employees. The information is communicated by line or departmental managers to teams or groups which may be departmental or functional. The employees may ask questions and are given answers and if not possible at the time, the answers are communicated later through writing. Senior managers are encouraged to attend the briefings to show their commitment to employee participation practices and to answer any questions regarding work issues. This enables employees to view their efforts as valued by the organization and is able to clarify any issues hence job satisfaction, morale, and performance. However, Wood & Wall (2007) argue that team briefings may not be effective since workers just receive information but do not participate in making decisions. Wilkinson et al (2004); Blyton and Turnbull (2004) recognize that employees need not only be involved in decision making processes but also sharing in the financial gains of the organization. Due to pressure for organizations to provide value for money by stakeholders and customers’ demand for improved products and services, modern organizations now link employees’ pay to performance. This is to ensure the employees are motivated and committed to improving their performance and be loyal which Hirschman views as the key to ensuring employees do not quit. Financial participation may be in form of profit sharing, share ownership and profit related pay. Profit-related pay involves ‘linking a proportion of employees pay to profit’ (Gennard & Judge 2005, p. 196). This means that if the organization does not get profit, then the proportion of pay linked to profit declines, so the workers have to improve performance. This ensures the workers are motivated thus more productive and committed to achieving organization’s objectives. However, the management should involve the union in such decisions in order to get support and avoid any conflicts with employees regarding pay and avoid breaching the employment law (Benson & Brown, 2010). Share ownership is another form of financial participation that enables workers to have a voice by engaging in decision making process. The shares are given to individual employees or to a trust which holds the shares on behalf of the employees allowing them to vote in an annual general meeting in decisions that affect them. The only problem with this form of employee voice mechanism is that it may not lead to improved organization performance as some workers may consider it as a means of earning additional income and not a means of participating in decision making hence no commitment (Rose, 2007). Hirschman (1970) argues that voice can be individual or collective. One form of collective voice is the use of task and work groups. Due to increased customers’ demand for quality, organizations strive to manage their quality standards and ensure improved customer service by engaging employees in decision making. It is based on the idea that employees have better knowledge of their work areas therefore, are better placed to advice the management on areas that need improvement. There are many employee voice mechanisms under this category such as quality circles, team working, and job enrichment among others. Team working has proved to be effective in enhancing employee relations and improving organization’s performance. Team members have diversity of skills and ideas which are shared among them thus enabling employees to develop their careers and become more engaged with the organization thereby reducing chances of quitting. To curb quality problems and ensure customer satisfaction, quality circles and total quality management voice mechanisms are crucial. The quality circles comprise of experts in a certain field who are not employee representatives and meet regularly to discuss quality issues and make recommendations to the management for action so as to improve quality. The management may however accept or reject their decisions but has to communicate to the members the reason for rejecting their views (Gennard & Judge, 2005). A supportive management ensures quality standards are maintained by ensuring those involved are trained on problem-solving skills as well as presentation skills so that they can communicate effectively. The last category of voice mechanisms is the indirect method of employee representation mostly emphasized by Freeman and Medoff who believe that voice is weak if it is individual in nature (Bennett & Kaufman, 2007).These include unions, work councils, joint consultative committees, and collective bargaining among others. Although the role of trade unions has declined over the years, Arvinen-Muondo and Perkins (2010), argue that unions play an important role in ensuring that management gets support from employees. They acknowledge the role unions played during the financial crisis by acting as intermediaries between management and employees. For them, management should not view the union as an adversary but as a partner in ensuring organization’s success. The Joint Consultative Committees (JCC) comprise of management and employee representatives who discuss issues affecting employees guided by a constitution (Gennard & Judge, 2005). The meetings are formal and have agendas to be discussed during the meetings. The representatives are allowed time to attend meetings and must report their deliberations to the employees. The committees, however, must cover all the employees and put all the points discussed in writing for future reference. The employee participation is felt through the negotiations between the management and representatives. There are various principles that guide the implementation of the employee voice mechanisms. They should cover all employees in the establishment to ensure acceptance and commitment by employees. The employer and employee should also agree on the method of participation to foster a feeling of ownership and for acceptability. There are various methods but some are not suited for some organization due to the organization’s culture and structure, therefore, the organization should choose a compatible mechanism or a mix of mechanisms (Rose, 2007). The management should also offer training and development to enhance the relations. The management should also consider employment laws and regulations, and not undermine the union in designing those practices and also to monitor effectiveness of the mechanisms and review them frequently to suit any changes in the organization. Employee voice mechanisms have a lot of outcomes for the workers. The workers gain personal and career development through practices such as team working and training. They are also well-informed of their tasks through team briefings, notices, journals, and through their representatives in order to know what is expected of them. This leads to high morale and increased commitment, improved performance as well as job security. By participating in decision making, employees feel a sense of ownership and are able to develop by exercising their creativity and innovative skills. They can influence management policies and practices leading to a better understanding and trust between them. The employees are also satisfied with their jobs since they understand how their jobs fit into the organization (Gennard & Judge, 2005). Conclusion Organizations have put various processes and structures in place to enhance employee involvement and participation in decision making directly and indirectly. The direct employee voice mechanisms include communication, briefing systems, total quality management, quality circles and financial participation through profit sharing and share ownership schemes. Employees are also empowered indirectly through representation in joint committees, work councils and unions. To achieve success, the management must be committed to the practices by providing time, resources, training and development and also changing structures and organization’s culture to allow proper implementation. As a result of these initiatives, the organization improves on its productivity, performance, employee retention, and reduced absenteeism. The employees on the other hand, gain morale, job security, career development, and financial gains. However, not one mechanism works best for all organizations hence an organization should choose a suitable mechanism or mixture of mechanisms for success. References Arvinen-Muondo, R., Perkins, S. 2010. A Decade of Change in Employee Voice. London: CIPD Bennett, J., Kaufman, B (eds). 2007. What Do Unions Do?: A Twenty-Year Perspective. New Jersey: Transaction Pub. Benson, J., Brown, M. 2010. 'Employee voice: Does Union Membership Matter?' Human Resource Management Journal. 20,1: 80-99 Blyton, P., Turnbull, P. 2004. 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