6. fl. ei strategies
DESCRIPTION
6. Fl. EI StrategiesTRANSCRIPT
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9. Employee Involvement
Strategy
Professor Debi S. Saini ([email protected])
Management Development Institute, Gurgaon
mailto:[email protected]
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HRM and Employee Involvement
Objectives of this session are to discuss the following:
EI and EP: Historical development & meaning and Aims
Types of EI: Downward & Upward
EI and employee engagement
Company newsletter as a form of downward EI
Team Briefing: Naturemeritsdeterminants of Success
Team working/suggestion scheme/attitude surveys & EI
QCs: Naturemeritsprerequisites; TQM: Naturefeaturesthemes
EI at Delta airlines
Working of EI at global level:
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What is Noticeable in People Mgt. Today?
Shift from Taylorism: i.e. indl. revolution model of HR mgt.
Taylorism reflects: ControlDisciplineSanctionsDirection
As in music, even in business there is a Shift to involvement/teams
EI intertwines trust and responsibility
The idea: Help & take others along with you
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Employee Participation
and
Involvement: Historical
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Economists Sydney & Beatrice Webb in their book Industrial Democracy(1897)
talked of industrial governance--But by this they merely meant wage bargain
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Salamons Distinctions
Industrial Democracy: Worker control
Employee Participation: Influences decision making
EI: Engagement, understanding, commitment & contribution
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EI and EP: Recent Thinking contd
Thatcherism led to Globalization
Japanization in HRM was seen attractive
Shift from Collective bargaining to HRM: EI a key theme
HRM/New IR aim to Build employee commitment
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How is EI Linked to Japanese Mgt. Practices
Japan exemplary in employee participatory practices
Impact of Confucius: A leadership theorist, stressed
Cooperation and harmony
Social hierarchy through benevolent leader
Leader to act in interest of followers: Young to respect sr.
Export of Japanization to other countries esp. UK
Used partly to water down pluralist UK attitude
Most EI issues relate to small shop-floor concerns
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HRM philosophy & Employee Involvement
HRM/excellence movement in 1980s: EI
Tom Peters: People are most valuable asset
HRM: Mgrl. aversion to EP in generalBut EI helps
EI reflects: managerial strategies for productivity
Not for building a participatory society
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Phases & Influence of Forms of Participation in UK
1900 1920 1940 1960 1980 2000
Unitarist
Pluralist
Marxist
Employee
Involvement
Task-Based
Participation
Collective Bargaining
Joint Consultation
Downward Communications
Worker
Control
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Nature
of
Employee Involvement
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Meaning of EI and EP
Employee Participation
Refers to state or collective-employee initiatives
in promoting collective representation of employees
in organizational decision-making
possibly in the face of employer resistance
(Hyman & Mason, 1995)
EP includes financial participation & profit sharing
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Meaning of EI and EP
Employee Involvement
EI is a strategic device used by management
in promoting employee commitment
& the consent/cooperation of the workforce
through information given directly (not reps.)
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High
Medium
Low
Levels of Employee Participation/Involvement
High involvement: Complete decision making power with employees
Full consultation: Employees offer recommendations (e.g., QC, Work organization)
Selective consultation: Employees give information, but dont know the problem
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Forms of Employee Involvement
Informal
Casual information
exchanges
Example: Boss asks for
ideas
Formal
Codified practices
Example: WCs under
IDA
Statutory
Required by law
Example: German
codetermination
Voluntary
No legal requirement
Example: Strategic task
force
Direct
Employees
personally involved
Example: Staff vote
against smoking in the
workplace
Representative
Reps decide for
other employees
Example: Employee
reps as directors
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Levels of Participation
Worker Directors
Task-Based Participation
Joint Consultative Committees
Trade Union/Works Councils
Collective Bargaining
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Employee Involvement
&
Engagement: What Does Research Say?
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HR Practices &
operating systems
designed & bundled to
enhance:
Ability
Motivation
Opportunity
Supportive
company, industry
and societal context
Expanded
employee
potential and
increased
discretionary
effort
Improved
systemic
response to
employee
effort
Improved
company
performance
Improved
worker
outcomes
Linkages within High Performance Work Systems
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Cummings & Worley, 8e (c)2005 Thomson/South-Western 15-20
EI and Productivity
Employee
Involvement
Intervention
Improved
Communication
and Coordination
Improved
Motivation
Improved
Capabilities
Improved
Productivity
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And Engagement?
Engagement represents ;
--a belief in org.s goals, and
--making efforts to operationalize it
But keep in mind that engagement is a strategic issue
that cannot simply be left as employees duty;
it has to be constantly nurtured
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The Power of Employee Involvement
Customer needs met through employee engagement
Intrinsic desire to control ones work
So EI help promote engagement
EI is crucial for building people-centric culture
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The Power of Employee Involvement
Own the process: Helps build trust/commitment
Inspire and drive the message
Respecting individual
Tap into their imagination, ingenuity, energy
Serve as consultants
Customer needs through employee prospects
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Involved Employees are Committed Employees
Commitment:
1. To be responsible for
2. To pledge (oneself ) to a position
Dedication
Pride
Responsibility
Integrity
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And Engagement?
Engagement is an idea whose time has come.
it represents an aspiration that
employees should
understand, identify & commit themselves
to the objectives of the organisation they work for..
(however).HR professionals need to recognise
that engagement is a strategic issue
that cannot simply be left to manage itself
(CIPD 2005, 2006)
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Employee Engagement (CIPD 2007)
Opps. For
upward feedback
Feeling
informed
Mgt commitment
to the Org.
Managers
fairness re: issues
Treating employees
With respect
Engagement
Performance
Intention
to Stay
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What Does Evidence Tell Us?
Management control: Involvement on mgt.s terms?
Emphasis on top-down communications unitarist
More communication and consultation far less negotiation
Is management really listening?
Management cultures: is knowledge still power?
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Types of
Employee Involvement
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Types of Employee Involvement
Downward communicationtop-down
I. In-house journals/company newsletters
II. Team-briefing sessions
Upwards problem-solving forms
III. Team Working
IV. Suggestion schemes & problem-solving groups
V. Attitude surveys
VI. QCs
VII. TQM
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I. Company
Magazine
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A. Downward Communication (DC)
The company magazine
Common methods of DC in past 20 yrs.
First used by Lever UK (in 1898)
Range: Amateur desk-top by WM to Glossy production
Levers found helpful in new programs e.g.
Used (in 1950) for acceptance of work measurement scheme
Used (in 1953) for job evaluation scheme
In 1990s they used it for flexible & harmonious working
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II. Team Briefing
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II. Team Briefing (TB) Concept of TB
A device to involve everyone in the organization
level by level in face to face meetings
organized by line managers
to present, receive, discuss information
approved by top management
on a regular basis
by providing a two-way communication
Aimed to replace casualism, & inject order in system
It was viewed as productivity breakthrough of 1990s (Fortune magazine)
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II. Team Briefing (TB) contd
TB seen as a key ingredient of the new IR and HRM
Changed focus
In 1980s: bad news to convey;
Now: maintain initiative
Organization:
Covers all levels
between 4 to 15 in each gr.
run by immediate leader of gr. at each level
leader be properly trained and briefed
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II. Team Briefing (TB) contd
Subjects:
Explains new and changed policiesExplaining co. plans
Telling progress in aspects of organizational functioning
People: appointments, personnel matters
Feed back to topProvides for two-way communication
Timing & duration:
At least once a month for inchargesOnce in 2 months for others
But meet only if something to sayDuration be about 20-30 Mnts.
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III. Team Working
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B. Upward Forms of Communication
III. Team Working
Focuses on problem-solving in a Gr-working situation
Teams vary in size: 7-10
It is a recent initiative in EIoriginated in Japan
Not as widespread as TQM: but its influence spreading
It requires task flexibility & job rotation
Training in: team culture/inter-personal skills/communication
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IV. Suggestion
Schemes
Creative ideas needed
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IV. Suggestion Schemes
Concept:
A method providing established procedure
for submitting and evaluating ideas
with the aim to recognize those
giving meritorious ideas
without discouraging those
whose ideas are not accepted
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IV. Suggestion Schemes contd Features
Suggestion boxes used: Idea is to involve WM in co. progress
--Mgrs/team leaders also encouraged to give suggestions
Going to individual for details of suggestion
Often committee of mgt./WM reviews suggestions
*It decides size of award
*Often has final power to accept/reject suggestions
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V. Attitude Surveys
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V. Attitude Surveys (AS)
What is an attitude survey?
It is a questionnaire survey of employees
On a one-off or regular basis
Which is designed to discover their views
About a variety of factors connected with work
AS postulates that WM want their views implemented
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V. Attitude Surveys (AS) contd
Opinions are taken on a wide range of issues
Job satisfactionjob specificationCo. org. & mgt.
Used by large no. of orgs. Some use them very regularly: IBM
Enlightened orgs. make imp. changes in policy
Cussons (UK, soap mfrs.) introduced equal opportunity policy
Also, it did training program to tackle employee harassment
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I. Quality Circles
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VI. Quality Circles
What is a QC:
A voluntary group of employees
holding meetings
to search solutions
for work-related problems
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VI. Quality Circles
Members usually are from a single deptt., similar work
Usually 6-12 members + supervisor
Member trained in various skills: Meetingteam bldg.presentation skills
A QC may be a part of the TQM programme
QC implements its recommendation where practicable
When implemented, QC monitors the process
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VI. Quality Circles contd
Some basic features of decision-making by QC:
1. Members voluntarily select problems from own-work area
2. Members collect data, brainstorm, apply problem-solving skills
--Management is frequently invited as expert
3. A facilitator assists the QC
4. Solutions evaluated for cost-effectiveness; shown to mgt.
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Merits of QCs
1. Improve communication
2. Increase job satisfaction
3. Stimulate personal growth
4. Increase employees sense of involvement
5. Enhance leadership skills
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VI. Quality Circles contd
Popular in the 1980s, not as much today
Potentially positive impact on productivity
But incidentally, little effect on satisfaction
Many Problems that led Dilution of Their effectiveness
Inadequate training
Not truly voluntary
Indifference of management
QCs are not really empowered
to make decisions
Source: www.freequality.org/beta%20freequal/fq%20web%20site/Training/ Classes%20Spring%202002/Quality%20Circles.ppt
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VII. Total
Quality
Management
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VII. Total Quality Management
What is TQM?
It is a concept that presupposes that
Everyone in the organization understands
The expectations of the customer
And they meet customers expectations every time
Based on Presumption of two Achievable Results
Lower the cost of operations
Improve the quality
And thus attract the customer
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Definition of Total Quality Management contd
A total company wide effort
that includes employees, suppliers & customers
that seeks continuously to improve quality
of products and processes
to meet needs and
expectations of customers
(Dean & Evans, 1994)
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TQM: Customer Satisfaction is the Driving Force
Strives on customer satisfaction: Internal/external
Voice of customer provides functionality
Quality as customer wants
Planning to deliver as customer wants
Calls for continuous improvement (kaizen)
Which is aimed to satisfy customer
In manufacturing:
Involves checking quality at each stage
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What TQM is: Total = Quality involves everyone & all activities in the company.
Quality = Conformance to Requirements (Meeting Customer needs)
Management = Quality can and must be managed.
It is a process for managing quality,
a philosophy of perpetual improvement in everything we do.
It is a method by which mgt. & employees can become involved
in the continuous improvement of production (of goods/services)
It is a combination of quality & mgt. tools
aimed at increasing business & reducing losses
due to wasteful practices.
Some companies well known to have implemented TQM:
Ford Motor Company--Phillips Semiconductor,
Motorola--Toyota Motor Company.
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What does TQM Pre-suppose?
It is a concept that presupposes that
Everyone in the organization understands
The expectations of the customer
And they meet customers expectations every time
Based on Presumption of two Achievable Results
Lower the cost of operations
Improve the quality delivered
And thus attract the customer
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Features of TQM
Systemic thinking: integrated system of tools/techniques/trng.
Aims to promote attitudinal change
Broad definition of customer concept
Measurement to involvement: US & British
Employee involvementempowerment
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Features of TQM
Routine use of quantitative performance measures
Initially engg. approachelectronic surveillanceteam discussion
Done to assess quality of design (market research, benchmarking)
Corrective action by statistical process control
Belief in kaizen: to achieve zero-defecteliminate waste
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Features of TQM contd
TQM requires support of all
Senior management support to drive quality culture
Delegation to middle mgt. project teams (cross-functional)
WM in teams supplying zero-defect good to intl. customers
High trust with external suppliers
JIT & TQM go hand in hand
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Features of TQM
Systemic thinking: integrated system of tools/techniques/trng.
Aims to promote attitudinal change
Broad definition of customer concept
Measurement to involvement: US & UK
Employee involvementempowerment
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Features of TQM Contd
Routine use of quantitative performance measures
Initially engg. approachelectronic surveillanceteam discussion
Done to assess quality of design (market research, benchmarking)
Corrective action by statistical process control
Later employee involvement envisaged
Belief in kaizen:
to achieve zero-defecteliminate waste
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Extended Meaning of TQM
Some companies have intertwined TQM with
employee recognition and care (e.g. QPL in China)
They believe that TQM can work better if
employee needs are taken care of
A happy employee can help
meet quality needs of customer
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What is Underscored in This Clip?
TQM aims to deliver Quality as per customer needs
QPL Ltd. Believes: Enthused employees deliver zero defect
TQM at QPLis built on the principle of employee recognition
Various needs of employees fulfilled:
From basic to exciting employee needs
AccommodationmealsSportsLeisure
So a joyful org. is seen as part of TQM
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Working of
Employee Involvement
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Reality of EI at Global Level: Lessons
Contradiction in mgrs projections & practices
Control is seen in upper realms of the hierarchy
Resistance against power shift to WM (National Pharma)
EP and even EI perceived as a power challenge
Japanese practices possible if workforce is compliant
And, also it works in situation of high-unemployment
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How To Overcome EI Challenges?
Cultural Differences
EI works better in low power-distance cultures (e.g.Japan)
Management Resistance
Solution: Educate/train managers
to become facilitators
Employee and Union Resistance
Unions see it as dilution of union rights/power
Solution: Promote trust and involvement
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Working of
Employee Involvement
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Factors Impacting Working of EI
1. Mgts willingness to concede some prerogatives
2. Training of mgrs/WM in group-working skills PresentationLeadershipAssertivenessProblem-solving
3. Provision of proper feedback mechanisms
4. Taking action to implement group decisions
5. Realize: Conflict helps developing initiative
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Reality of EI at Global Level: Lessons
Contradiction in mgrs projections & practices
Control is seen in upper realms of the hierarchy
Resistance against power shift to WM (German Pharma)
EP and even EI perceived as a power challenge
Japanese practices possible if workforce is compliant
And, also it works in situation of high-unemployment
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How To Overcome Involvement Challenges?
Cultural Differences Better in collectivist & low power-distance cultures
Management Resistance Educate/train mgrs to become facilitators
Employee & Union Resistance
Union see it as dilution of union rights/power
Solution : Policies of trust and involvement
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Working of EI at Global Level: Lesson contd
EI used only for efficiency of organization
Dilemma: how much power to give for creative energy
No undermining of managerial prerogatives tolerated
New technology, TQM, culture change used for control
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Employee Involvement
In
Delta Airlines
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Delta Airlines
A successful US airline
Has high level EI programs
It has one of the most advanced EI in the world
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Delta Air Lines: the 1980s
A top 100 employer
A classic high road non-union firm
There was no EI program initially
Enlightened Paternalism & Velvet Glove Command/Control
Very high employee loyalty
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Delta Air Lines: the 1990s
Chaotic comptt., turbulent markets, global expansion
New mgt. team:
--Paternalism is out, business partnering in
EI was adopted at first for non-strategic reasons
Has grown into a strategic HRM device: EI part of business model
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Delta EI Program: Structure
1. Top-Level: Delta Board Council (one)
2. Middle-Level:
Division Employee Councils (Five)
3. Lower-Level: Base councils (Many)
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Delta EI Program: Structure
Top-Level: Delta Board Council
Consists of 7 employees: each representing a business Division
Peer selected by employees, 2-year term
DBC attends BOD meetings, meets with CEO, CFO, EVPs
Undertakes Project assignments
Preview employee-sensitive communications/policies of Delta
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EI Program contd.
Middle-Level: Five Division Employee Councils
Flight Attendant Forum
Technical Operations Council
Airport Customer Service Forum
Cargo Partnership council
Reservations Sales council
These forums consist of employee-elected representatives
Deal with all issues affecting that division
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EI Program contd.
Lower-Level: Base councils
Elected representatives
Handle base level issues
They form Continuous Improvement Teams
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Costs Invloved
Employee/Management Time
Slower/Constrained Decision Making
Higher Labor Cost
A kind of Unintended Collective Bargaining
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Benefits Energizes the Employees
Organizational Alignment/Coordination
Production Efficiency/Quality
Communication/ Information Flow
Organizational Change
Management/Employee Development
A proactive way of managing employee relations
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EI at Delta: Features & Impact
Impacts the Bottom Line
Deals with core Part of Business
Has a Long-Run Focus
Trust and Mutual Gain
Empowerment & Problem-Solving
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EI at Delta: Features & Impact contd
Management Commitment
Early Bumps
Training as part of corrective measures
Cooperative ER and Union Avoidance
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What can be learnt from this session?
While EP is rooted in collectivism, EI is built on individualism
EI contributes to employee engagement
Newsletter & team briefing are imp. form of top-down form of EI
QCs are declining in their effectiveness for various reasons
TQM is becoming more as an EI instrument than control
Effective EI is resisted both by managers & trade unions
EI is likely to be more successful in low power-distance cultures