employee participation

employee participation

the participation of employees in the affairs of the organization through (limited) participation in decision-making or acquisition of a stake in the company through EMPLOYEE SHARE OWNERSHIP schemes (financial participation). Participation in decisionmaking is usually at the immediate job level, i.e. employees may be given the opportunity to consider, recommend and implement changes to the way tasks are performed (see JOB DESIGN AND REDESIGN, JAPANIZATION). The philosophy behind participation is that employees have talents and knowledge about their jobs which can be utilized to improve performance, and that involvement in decision-making encourages commitment. It can be contrasted with INDUSTRIAL DEMOCRACY in which employees or their representatives have the right to be involved in determining company policy. See CONSULTATION, COMMUNITY CHARTER OF FUNDAMENTAL SOCIAL RIGHTS, FIFTH DIRECTIVE, VREDELING DIRECTIVE, EMPLOYEE SHARE OWNERSHIP PLAN, EUROPEAN WORKS COUNCIL.