C: Employee Participation

Employee participation relates to management encouraging staff to actively take part in running and improving the business. Management can encourage employee participation in the following ways.

1. Employee Works Councils: Employees in business with at least 1,000 staff across Europe have the ability to set up a works council. Employees elect representatives within the business for the works council, thus giving staff a direct line of communication with senior management in the business. This is all part of an EU directive.     

A works council ensures that:

• Across all EU countries, employees receive their information from their management about business plans at the same time.
• Representatives within the company share the information received with their colleagues and construct a response to the plans.            

Before the plans are implemented, senior management is required to take into account the personal views of the works council.      

2. Worker Directors: These are employees elected and recommended by their colleagues to sit on the board of directors of a business. These directors participate in important decision-making at a senior level within the firm.

3. Employees Share Purchase Plan ((ESPP): Employees can buy shares at a reduced price or may receive shares as part of their reward package. Employees become owners in the business and can vote at the AGM.

The benefits of Employee Participation include:

• Increased motivation: Employees feel that they are valued and respected by management. This increases motivation levels and boosts productivity.
• Improved industrial relations: Employees representatives speak to management about issues such as pay and working conditions. These issues can be resolved quickly and lead to improved industrial relations between management and staff.
• Improved decision-making: Management can make better decisions when they include suggestions from employees. Staff possess skills and experience that can aid decision-making in the firm.

For a business to encourage employee participation within itself, in my opinion, would be to allow to be heard. Figure out why employees aren't participating as enough as you would like them to and address them. Encourage their ideas and empower them when its right. Include their own views and opinions within the decision-making process, which could improve relations between management and staff.

A: Change in Management Styles

In the business environment currently, the management style most commonly used by business managers is a facilitator management style. A facilitator management style is typically used with democratic leadership and the motivational approach of McGregor's Theory Y. This allows for better implantation and embracement of changes in the ever-changing dynamic environment.

In the past, managers took a traditional controller managerial style, associated with autocratic leadership and the motivational approach of McGregor's Theory X.

B: Employee Empowerment

Employee empowerment is when management gives employees a certain amount of independence and responsibility for decision-making in the business. This enables employees to make decisions on behalf of the business without needing to get permission from management.

A number of methods are used within businesses by managers to encourage and implement employee empowerment in the workplace. These include:

• Investment in training: Ensure that employees have the skills to make decisions on behalf of the business.
• Rewards: Offer financial and non-financial rewards to encourage employees to take on more responsibility. 
• Trusting employees: Create a culture of trust where management believes in the abilities and skills of staff.
• Control mechanism: Management must be able to monitor empowered staff to ensure that mistakes are identified and corrected quickly.

The benefits of empowering employees include:

• Decision-making: Employees have the skills and knowledge needed to make decisions on behalf of the business. This can lead to faster and better decision-making.
• Employee Motivation: Empowered employees are motivated because they feel that they have an important role in the business. This can lead to increased productivity.
• Management Time: Empowered employees require less supervision as they are trusted to make decisions.
• Better Customer Service: Employees are encouraged to solve consumer issues quickly and effectively. This can lead to improved customer loyalty.

The risks from empowering employees, however, include:

• Employee Training: If empowerment is introduced without adequate training, employees may make mistakes that could end up damaging the firm's reputation and increase business costs.
• Managerial Control: Some managers may be unhappy with giving power and responsibility to employees. This could lead to industrial relations conflict between management and staff.
• Lower Motivation: Some employees may not want the extra responsibility associated with empowerment. It can increase employee stress and lead to lower motivation.
• Less Managerial Supervision: Less supervision from management may encourage some empowered employees to take unnecessary business risks. This can lead to poor decision-making and cost the business money.

In my opinion, I believe that employee empowerment is a great way to motivate employees and make them feel as if they belong within the business. Employees who are empowered feel trusted and motivated enough that it could potentially lead to an increase in productivity. They are enabled to make decisions on behalf of the business without needing to get permission from management.

However, it is of the manager to make sure that they don't overpower the employees within the business, especially ones who could make terrible decisions, costing the life of the business. It should be a gradual introduction and not immediately introduced to the business.