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Advantages
- Employees are encouraged to voice their views frankly and freely, which they may be reluctant to do if there were not representatives. This should reduce tension and clear up uncertainty and misunderstandings
- Trust and cooperation should improve, thereby contributing to better understanding of the need for change, increased acceptability of decisions and improved business performance
- It enables managers to gauge the likely reaction of employees at an early stage in decision-making
- The skills of managers, as well as employee representatives, are developed in areas such as listening, diplomacy, making presentations and problem solving
- Managers seem less remote because employees have easier access to them at all levels
- It provides an opportunity to discuss and order priorities, which increases employees' sense of involvement and considerably improve effectiveness and efficiency
- The range of the subjects over which information is given should increase
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Disadvantages
- Managers feel undermined in that their actions are scrutinised by employees
- Representatives may want to discuss sensitive issues and there is more likelihood of breaches of confidentiality
- If managers do not take the input of representatives seriously, this could lead to resentment and mistrusts, which could undermine attempts to improve business performance
- More time is spent in discussion, and the decision-making process Bromes longer and slower
- Employees may try to determine the order of priorities within the organisation which may be to further their own interests, rather than those of the business
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