Though it is said that customers are the most important element in any business, employees of an organization are also equally important. In the grand scheme of business operations, employee participation is an incredibly important element as it encourages the employees to be more confident, trusting and committed in the vision of the business. However, the importance of employee participation cannot be dismissed as any management technique. There are several forms of employee participation and diverse businesses make use of them differently. Today HR teams can make use of simple software tools like SuccessDart to ensure an active HR performance management ecosystem that drives participation from everyone across the organization. However, fundamentally the advantages and disadvantages of employee involvement tend to remain irrespective of the methods of employee involvement.

As any coin would have two sides, employee involvement has its advantages and disadvantages too. However what is more important is to understand and leverage them effectively towards the betterment of the business ultimately.

Let us first look at the advantages of employee involvement.

It acts as an excellent motivating factor

Though there are several advantages of employee participation, the most important one is that it is able to motivate all the parties engaged. Employee involvement is often able to create an environment where everyone engages in conversations, exchange of ideas and participates in everything that happens on the floor. This definitely creates an excellent environment which is definitely positive. When such environments are created and facilitated, employees will be more forthcoming to display their exceptional analytical and problem solving skills which can definitely be an advantage to the organization as a whole. Such scenarios make the employees understand that the organization notices their contribution and their voices are heard by them. This can definitely make the employees strongly motivated and can improve the collective efforts of the employees.

It is economical and saves a lot of time

Most of the times, when a board of members sits back and tries to analyze a problem and come to a conclusion, they may not be able to get to the bottom of an issue due to the lack of effective understanding of the issues at hand. However when employees are involved in decision making, they can always bring a whole new level of understanding of the issue. This is easily one of the most important benefits of involving employees in decision making. As collective decision making is all about involving a lot of people with different understanding of the issue, skills and experience, they can easily come to a conclusion merely based on their personal experience which even the senior management may fail to arrive at. Thus, this helps the management save a lot of time and money, for sure.

employee participation in decision making in an organisation

It makes the organization more creative

When your employees are actively involved in the decision making process of the organization, it makes the company more creative and innovative. In fact, these two elements are really important in sustaining a business in a competitive market. There are several employee participation examples that display the ways and means in which employees can contribute to make the organization more innovative and creative. As employees are the people who constantly interact with the market and customers directly, they tend to understand the pulse of the market effectively. Such insights are crucial in making the organization realize the need of the customers and to transform the offerings to meet the very requirements of the clients. When the company is in need of ideas and concepts that can be used to offer better service to the customers, employee participation techniques can really pay off. The synergy that comes from a wide range of areas can definitely help the business become innovative and more creative in running business.

Facilitates for better capacity and influence

Effectively making use of different forms of employee participation can facilitate mutual understanding, faith and cooperating between the employees and organization and between the employees themselves. In such scenarios, the employees will often not have anything to disagree with the decisions taken by the manger or the management at a higher capacity. This means that the mangers can influence the employees pretty easily and hence, several other decisions can also be implemented without the fear of being rejection by the employees. Further, when the employees are able to work together coerced by the decision taken by themselves to a common goal, the degree of cooperation and their capacity to execute tasks normally increases. This will reflect in their performance, the productivity and the growth of the organization effectively.

Creating conducive work environment

When a variety of schemes of workers participation in management are coupled with quality management, it will really create a conducive environment for the employees to work, co-habit and develop to become better professionals. When such an environment is created through several methods of workers participation in management, it leads to a win-win situation for all the parties involved. The management will definitely listen to the voice of the employees and the employees will pay attention to the voices of the management, too. When employees are constantly involved in business decision making processes, they will become more responsible and serious about their line of duties as well.

It helps to make exceptionally effective decisions

Through effective employee involvement and participation methods, a business can always make decisions that are useful to the business and the employees involved. One of the major objectives of employee participation is undoubtedly to improve the quality and effectiveness of the decisions of an organization. It can so happen most of the times that even though decisions are taken and executed by organizations, the implementation of the same may not always be as expected. This is largely due to the lack of involvement of the employees in the process of decisions making and implementation of the same. When employees are dissatisfied with the organization, it can easily affect the entire operation of the organization for sure.

It can act as an excellent brain storming session

As you would expect, there are different types of employee involvement and each of them has definitely aim to achieve. However, whatever be the forms of workers participation in management, the ultimate aim is to help the management make effective decisions that can work for the business and the employees in the longer run. With several levels of workers participation in management, it is easy for the organization to ensure the involvement of the employees who will provide a wide range of innovative ideas and concepts to the organization which can be used later. When such involvement is considered a brain storming session that will give the business all the newer perspectives they are looking to have, they can make use of the ideas effectively and implement them.

Employee involvement boosts productivity of the organization

Through different types of workers participation in management, the morale of the employees can be boosted effectively. In any business setup, it is quite difficult to boost the morale of the employees. Though rewards and recognitions can be used, it can only do so much. This is where, employee participation in decision making in an organization can do wonders to enhance the productivity of the organizations. When the employees are constantly required by the organization to help them with several decision making processes through different types of employee involvement, the morale of the employees will surely be boosted. This will make them more committed, trusting and positive towards the organization, which will definitely be displayed through sheer productivity.

Making effective utilization of available human resource

Utilizing diverse forms of employee involvement and participation, an organization can utilize the human resource readily available at their hand. Making use of the employees physically always have a limit, however making use of the intellectual abilities of the employees in ways and means that the employees would never imagine can excellently improve the chances of the organization to fare successfully in a wide range of scenarios. Apart from giving employees an opportunity to understand the in-depth processes of decision making in a business, it helps the employees realize hard work, efforts and time go into it.

Meeting psychological requirements of the employees

In Maslow’s need hierarchy theory, the very existence of human beings is tethered to the fulfillment of their needs whatever they may be. As is the case in an organization setup as well, employees have a need to ensure that they are able to contribute to the business effectively. When employees are able to satisfy their psychological needs, they are better off and able to perform better in all situations. There are several ways in which employees can directly and indirectly participate in decision-making of a company and all these ways can help the employee live a psychologically satisfied professional life.

It helps the business prepare the employees for career advancement

Growth is expected by every employee under any circumstances. However, understanding the talents of each and every employee while there is a vacancy at a higher management is never a viable plan. However, when employees display their talents and skills through several employee involvement activities, organizations can make note of such employees who are capable of analyzing the situations effectively. Such employees can be considered for promotion when opening that requires talents like theirs.

Though employee involvement is one of the perfect ways to motivate employees, it is never without the disadvantages. There are several setbacks to actively involving employees into decision making.

A few of the important disadvantages are discussed below.

employee participation in decision making in an organisation

It risks security of the business information

One of the major concerns that worry many organizations, when they try to find newer ways in which employees participate in decision making, is the obvious risk that comes with such an activity. Even though several benefits of employee involvement in TQM can be observed, an employee who might make use of these details for personal gain can affect the organization badly and can jeopardize the entire efforts it puts behind to make its offering better for customers. As corporate espionage is not a novel thing or unheard of, getting employees without any sort of failsafe can definitely put the organization in harm’s way.


Employees may not be as forthcoming as the management

Sometimes when organizations approach the employees with everything they have to gain new insights, ideas and concepts, the reception from the employees may not be as encouraging as the organization expects. While this may be due to several issues that the organization might be able to solve later, if the initial response of the employees is not really encouraging, the organization might need to find other ways to get really back into the game. Along with that, some employees may not always be truthful either; they can feed the organization with false details and insights that the organization might not have any ways to validate or verify.

It can sometimes bring in dispute, ambiguity and power struggle

When there are high levels of employee engagement and participation in business decision making processes, it is natural that some employees might feel disconnected and confused. They may not have all the details to understand a clear hierarchy or flow of power. Such situation may not be conducive for the effective performance of the business as there will surely be power struggle between employees and managers. This will work against everything the organization is trying to bring into the organization. This is considered to be another disadvantage of getting employees heavily involved in the management decision making process. However, there are ways to address this issue as well. There are highly effective and efficient human resource software programs that will help the business get all the details about the skills, prowess and background of employees to create controlled employee involvement in decision making processes.

As you have seen these advantages and disadvantages can be effectively managed by using the latest human resource management software programs. As they can easily be used in today’s technologically advanced business setup, they can always bring the desired results for all businesses that make use of these systems. However, when employees are involved in all sorts of decision making processes, it is important that you have enough options to reward and recognize them, because it is the people of the organization that makes an organization not its technological infrastructure, customers or processes. Such rewards and recognition programs can easily be brought into reality with the help of simple performance management tools like SuccessDart and being a cloud based product, it does not involve heavy upfront costs.


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