Grievance handling is an essential part of any business, in case people have been dismissed unlawfully so there has to be a structure

and rules and regulations in place. Even in well-run businesses, it may sometimes be necessary to take disciplinary action against employees. So in essence it is vitally important to have written disciplinary rules and procedures in place in the workplace. If problems do arise, these procedures should help deter employees from making employment tribunal claims and ensure that you are dealing with employees as fairly as possible The rules and procedure with regards to grievance handling should be set out in writing, follow the goodpractice principles set out accordingly and follow your areas code of practice on disciplinary and grievance procedures If you do not meet these criteria then it may lead to extra compensation for theemployee if they succeed in a tribunal claim. You should by law inform eachemployee about a number of things including your disciplinary rules, your disciplinary/dismissal procedure and the name of the person to whom they should appeal if they are unhappy about a disciplinary or dismissal decision. There should be an employee's written statement of employment or the written statement may refer the employee to a document which is handed to everyone beforeemployment. In cases that you do not provide this information to an employee and they succeed in another employment tribunal claim against you in a case of unfair dismissal, they could be awarded up to four weeks' pay. However, if you do decide to make your disciplinary procedure contractual and you fail to follow it when taking disciplinary action, the employee could bring something called a breach of contract claim against you. Participatory management is the practice of empowering employees to participate in organizational decision making. This practice grew out of the human relations movement in the 1920s, and is based on some of the principles discovered by scholars doing researchin management and organization studies, such as the Hawthorne Effect. While senior managers still retain final decision making authority when participatory management is practiced, employees are encouraged to voice their opinions about their working conditions in a safe environment, protected from the potential defensiveness of middle managers who they might criticize. In the 1990s, participatory management was revived in a different form through advocacy of organizational learning practices, particularly by clients and students of Peter Senge. There is some criticism of participatory management (see Heckscher, below), particularly because it is difficult to combine this practice with a more financially oriented approach to restructuring that may require downsizing.

Participatory Management
This Principle implies the progressive development of self-management and, consequently, of the participation of the members in business management. This requires:

The development of adequate mechanisms and channels for participation. Transparent information with respect to the performance of the basic management variables of the co-operative. The use of methods of consultation and negotiation with the worker-members and their social representatives in those economic, organisational and labour decisions which affect them. The systematic application of social and professional training plans. The establishment of internal promotion as a basic means of covering positions with greater professional responsibility. The first and foremost body of participation is the General Assembly, in which rests the full sovereignty of the co-operative. Its most important powers include: appointing and revoking members of the Governing Council and Accounts Auditors by

means of a secret vote; examining company management, approving the annual accounts and the distribution of surplus and apportioning of losses; approving the general policies and strategies of the co-operative; approving increases in share capital, the rate of interest to be accrued by capital contributions and the joining fees for new members; modifying the Company Statutes and approving everything implied by a substantial modification in the economic, organisational or functional structure of the co-operative. The Governing Council, elected by all the members at the General Assembly, is the representative, management and governing body of the co-operative. It consists of a maximum of 12 members, with half being renewed every two years. The term of office lasts four years, with re-election possible. Its actions are subordinate to the policies and strategies set by the General Assembly and its responsibilities include: the appointment and dismissal (at the request of the Director General of the respective Subgroup) of the Managing Director of the co-operative; the calling of ordinary or extraordinary General Assemblies; the admission and withdrawal of members; decisions concerning the work and disciplinary system and the application of sanctions; changes important to the organisation and operation of the co-operative; proposing to the General Assembly the approval of the annual accounts, the distribution of profits or apportioning of losses and the resolution of any doubts which may occur concerning the interpretation of the Statutes. Finally, the Social Council acts as an advisory and consultative body in representation of the members as a whole before the internal authorities of the co-operative. Its members are elected by areas of activity and their number depends on how many members the co-operative has. Its basic functions are advice, information, negotiation and social monitoring. The responsibilities of the Social Council focus on the drawing up of proposals and reports on decisions to be adopted by the governing bodies, transmitting the information received to those it represents and presenting members initiatives to the governing and management bodies.