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Employee participation is distinguished by state involvement, through which
procedures are advocate or introduced to regulate potential conflict between employers and labour. It is state supported, union initiated, usually based on indirect participation of union representatives in joint union management decision-making such as joint consulation, collective bargaining or works councils.
By Contrast, employee involvement is seen as management initiated, attempting to secure the direct involvement of individual emmployees in various schemes designed to secure employee commitent, motivation and loyalty so as to contribute to the achieveent of organizational goals and objectives. Management is trying to overcoe situations where workers are poorly motivated, alienated from their work and poorly rewarded materially.
Employee involvement is process usually initiated by management to increase the information given to employees and thus enhance their comitment. Involvement processes tend to threat employees as individuals, that is, they address the directly, face-to-face, rather than through their representatives. In contrast, participation refers to collective rather than individual processes which enable employees through their representatives to influence decision-aking. The term participation can be extended to fors of financial participatioon such as profit-sharing.