Employee Participation (Quick Revision)

Question 1

Define: Employee Participation

Answer 1

Employee Participation is the extent to which employees are involved in the firm’s decision making.

Question 2

State one disadvantage of strike action to a firm

Answer 2

Loss of production- may lose future customers by failing to deliver

Question 3

State two objectives of trade unions

Answer 3

• To improve working conditions

* To improve rewards for employees

Question 4

State three ways of increasing employee participation.

Answer 4

• Works councils
• Union representation
• Employee shareholders

Question 5

State two reasons why managers might not want to negotiate with unions

Answer 5

• May slow down decisions

* Reduces their freedom of decision making

Question 6

What is the Examiner’s note on Employee Participation?

Answer 6

The most appropriate form of participation depends on what issues need to be discussed (e.g. are they relevant to the department or the business as a whole?)

Question 7

What is the Evaluation point of Employee Participation?

Answer 7

Employee participation is more likely to be useful if employees are trained, if they have a positive attitude to the firm and if decisions benefit from a variety of views.