• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12

With Reference to Specific Business Examples Reported In The U.K Business Press, Critically Evaluate The Effectiveness Of Participative Decision - Making.

Extracts from this document...


With Reference to Specific Business Examples Reported In The U.K Business Press, Critically Evaluate The Effectiveness Of Participative Decision - Making. Name: Rupal Patel Module Code: 4HRB601 Student Number: 01073225B Date: 18/11/04 Subject: Managing Business Organisations Word Count: 2591 Module Leader: Amanda Rose Seminar Tutor: Amanda Rose In the business world today, there are a number of decision-making techniques that management can apply, to help improve the quality of the final outcome. One of them being Participative Decision Making (PDM). The following essay is based on critically evaluating the effectiveness of PDM, with reference to specific business examples reported in the UK business press. In order to do this, it is necessary to gain background knowledge of PDM, including how it came to arise and its positive and negative attributes. The business examples will be incorporated in order to support both aspects. Once this is established, it will help to form an overall critical evaluation of the effectiveness of PDM. The founder of Participative Management (PM) can be associated with Dr Alfred J. Marrow (1947), who was the CEO of the Harwood apparel manufacturing company.1 He observed that the company's workforce consisted of poorly educated young women, thus resulting in low productivity levels, and in effect, kept declining nearly 25% every time a change was introduced. Due to this, there became great concerns regarding the causes of the workforce behaviour and how to improve it. As a psychologist, Dr Marrow and his colleagues discovered a positive relationship arising between productivity levels and the amount of decision-making employees held. In general, if employees were given the opportunity to make meaningful decisions regarding their own work, then this would lead to nearly a 14% increase in productivity levels. ...read more.


Also in order to strengthen the employees' commitment to manufacturing only the best products, production workers were made into marketing emissaries for the company's product. This would anticipate to have had a knock on effect as the workers would hopefully have a greater sense of responsibility for output, after having formed personal relationships with customers and dealers. Another aspect the company had adopted was to encourage employee involvement in retaining customer relationships and examining product-quality feedback. Overall, by allowing its employees to maintain more responsibilities and with the additional training, this had hopefully set them up for their new roles. The results produced seem clear that Deere & Company has benefited from these new changes involving the employees, as it has helped to overcome the challenges they initially faced. A more recent example of the positive effects of PDM is noted in the recent turmoil of British Airways (BA), where employees were never given a say in decision making and thus resorted in strike action and a contempt for the company. The CEO, Rod Eddington, finally changed the structure to incorporate a wider influential say with his employees, in effect applying the features of PM, which has overall helped to improve the situation they faced. Now we turn our attention to the other side of PDM, which views it as not working in all situations. It can be presumed, that it is the very strengths of a group that are also its weaknesses. In one sense the outcome of group decisions can be of lower quality than individual decisions, as they may be affected by the group members' attempts to retain friendly relationships among themselves. ...read more.


However PM, when applied to certain situations, can be viewed as being effective and to obtain better results management can apply a contingency approach. For example, whilst attempting to solve problems, the type of interaction or quality of communication between managers and employees can strongly influence the effectiveness of participation. The key elements required for an effective participation is a constructive interaction that emphasises cooperation and respect, in comparison to competition and defensiveness. In relation to complex tasks, it is vital to formulate mechanisms to improve communication effectiveness. In conclusion, looking at the arguments of PDM, it seems the benefits of PDM far outweigh the drawbacks. The main advantage is that PDM emphasises that each individual can provide a significant involvement in reaching the organisations aims. From a management perspective, all the positive and negative attributes of PDM must be weighed, factoring in unique organisational situations. Thus businesses should only use a group authority to make decisions, only at times, when the advantages of implementing it, outweigh the disadvantages. It is vital to acknowledge that the effectiveness of PDM will depend upon factors such as the design of work, the level of trust between management and employees, and the employee's willingness to participate which will all have a profound influence on it. However, as previously mentioned, to maximise the efficiency of PM, employees should be fully trained, prepared, and interested in participating. I feel that overall PDM is effective in certain situations, however the process of implementing it must be monitored and managed well by top management. This can be supported by recent business examples, such as BA, who are now adopting a PDM approach, so as to successfully compete in the global economy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Marked by a teacher

    Sainsbury's organizational structure.

    5 star(s)

    Whereas Sainsbury's having a formal structure, the objectives will be different for each department and segmentation because they are closed off and separated from the company as whole. Culture: - If the culture will be power culture the objectives will be set by the manager and will probably be unique and self-satisfying to him/her.

  2. Marked by a teacher

    Tesco's organisational structure

    4 star(s)

    If a business want to be successful all the functional areas should work as a team because each depend on others for example in finances the credit controller is going to retire. Finance department should let human resources department know and both department should consult to make a job description

  1. Produce a case study comparing two business organisations, investigating the extent to which each ...

    Company performance Marks and Spencer is one of the most profitable companies in the UK. It has had a reputation as a safe 'blue chip' investment for decades. Figure 1 shows that between 1992 and 1998, M&S pre-tax profits increased every year.

  2. Analyze and evaluate the strategic decisions made by Marks and Spencer (M&S) in different ...

    Many employees were used to the 'top- down' decision -making style. Leadership is a social agreement. The creation and changes of leadership will take years after people's experience. Therefore the top management has to be patient with the change and try to avoid inconsistency in change.

  1. British Airways "Flying into a Storm"

    He even decided, as a pendant to the construction of the head office, to build a hotel in Heathrow just for the staff. Bob Ayling set up many changes in the corporate strategy, but let us now see how his management style was different from his predecessors.

  2. Report: Type of ownership of J-Sainsbury

    Public limited companies can be quite small, which needs to have 2 directors and 2 shareholders. Very large plc's like J-Sainsbury's can operate more cheaply than small companies as they operate on economies of scale. This means that large companies can mass-produce goods for sale and buy in bulk to save more money.


    Relations between the superiors and subordinations is low, Indian culture supports hierarchical structure and autocratic superiors. High level of power distance in India is also evident from the cast system in place there, which does not allow significant upward mobility of its citizens specially that of lower cast.

  2. Organizational Behaviour Assignment - Management.

    Explaining the need for changes to employees and getting their views can diminish the resistance. Companies like Ford or JVC had to deal with changes when computerised assembly lines were introduced. All these changes happened due to new innovations being made everyday.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work