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It is often linked to the notion of employee voice and empowerment. [13] Two studies of employees in the life insurance industry examined the impact of employee perceptions that they had the power to make decisions, sufficient knowledge and information to do the job effectively, and rewards for high performance.
By sharing decision-making with other employees, participants may eventually achieve organization objectives that influence them. [7] In this process, PDM can be used as a tool that may enhance relationships in the organization, increase employee work incentives, and increase the rate of information circulation across the organization [8]
Empowerment of employees requires a culture of trust in the organization and an appropriate information and communication system. The aim of these activities is to save control costs, that become redundant when employees act independently and in a self-motivated fashion.
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Employees have more independence therefore may take more responsibility and pride in their work. Employees feel like an integral component towards the organization and therefore have more pride, motivation, and incentive to fulfill the project. [8] [9] Negative effects participatory management has that can lead to negative employee perceptions:
When employees perceive that they are receiving fair treatment in comparison to their coworkers, they perceive more support. The equity theory says that employees feel entitled to what they are given as workers based on their inputs to the job. Therefore, fairness can be perceived even if the rewards differ in size, based on employee rank.
In fact, there are only a dozen of our 100 employees who work more than 40 hours a week, and that is by choice. Flextirement has had an incredibly positive impact for our team at Optima Office.
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