You are the Human Resources Manager of Wydget Corporation, a small manufacturing

Question

You are the Human Resources Manager of Wydget Corporation, a small manufacturing firm. The employees of Wydget are not unionized. Because of difficult business conditions, the workers’ wages have not increased in several years, and their medical insurance benefits have been reduced. As a result, morale among employees is low, and there has been high turnover in the work force. You are considering creating an employee involvement group to provide an opportunity for workers to share their concerns and ideas with management and to discuss production problems and working conditions.

How can you structure the group to ensure that employees feel their role is effective, without running afoul of Section 8(a)(2)?

What are the potential problems associated with the creation of such a group?

Should you establish the employee involvement group?

Explanation / Answer

As per the National Labour Relations Board

Section 8(a) (2) does not allow an employer to interfere or dominate with the administration or formation of any labour organization. The organization cannot support it or contribute to it financially.

The above stated case may thus create problems if it is not just an employee group but a union. There are ways though in which it can be created for it to be an effective employee involvement group wherein the employees feel that their role is effective.

Employee involvement empower employees and increases their participation on employee decision making. The participative management style, using McGregor's Theory Y, uses quality of work life programs and job design approaches. Employee involvement can be through job security and financial means. ESOPs, profit distribution, and, share ownership are for the latter and car manufacturers & IBM use the former. Organizations can also set up an employee involvement group in the form of Autonomous Work Groups (High Performance Work Design).

Employee involvement methodologies that can be used are giving responsibility to employees, training employees to accept responsibility, giving rewards & recognition, communicating & giving feedback.Scitor follows a policy of Employees First bygiving them company paid health plan, unlimited sick leave, no lost wages, no tracking of sick days.

Organization should not try to establish and control the union. Employee involvement can be used to keep costs low and morale high.

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