Analysis of Employee Involvement on American Water Company Essay

Analysis of Employee Involvement on American Water Company - Essay Example The following advantages had been cited for having employee involvement in an organization. It is argued that when employees are allowed to get involved in the organization’s decision making, employees are more likely to apply decisions they have made themselves (Porter, et al., 1975). Staw & Ross stated that employees know better what is expected of them, and they commit better to the organization’s decision (1978). [Employee]Participation may lower the disutility of effort, by providing intrinsic motivation (Staw, 1980). Also, participation may suit non-financial needs such as achievement, creativity and the longing for respect. This may also develop cooperation and communication; employees discuss with each other instead of allowing all discussions only to the management, saving management time. When employees are participative, they tend to supervise themselves, therefore reducing the need for a lot of managerial positions and lessening costs of labor. Involvement t eaches employees new skills and helps identify and train leaders. Strauss emphasized that â€Å"participation increases loyalty and identification with the organization†. He also argued that â€Å"If participation and rewards take place in a group setting, the group may pressure individuals to conform to decisions† (1977).When management leaders and union participate cooperatively to resolve problems on a nonadversarial basis; it improves the union-management relationship. Involvement often results in the setting of goals and according to Latham, Gary â€Å"goal setting is often an effective motivational technique, particularly when workers set their own goals (1988). However, employee involvement had been evaluated as disadvantageous in some ways. Among the disadvantages cited are: Employees may be less knowledgeable than managers, and the understanding of the decisions they made may be different.