6.Employee Participation

7/30/2019 6.Employee Participation

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Employee Involvement

& Participation


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Participation

The word participation means sharing the decision-making power with the lower ranks of the organization

in an appropriate manner.

Participation has a unique motivational power & a

great psychological value. It promotes harmony and peace between workers and

management.

When workers participate in organizational decisions,

they are able to see the big picture clearly, i.e., howtheir actions would contribute to overall growth of the

company.

They can offer feedback immediately based on their

experiences and improve the quality of decisionssi nificantl .


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Participation Since they are involved in the decisions from the

beginning, they tend to view the decisions as theirown & try to translate the rhetoric into concrete action

plans with zeal and enthusiasm.

Participation makes them more responsible.

They are willing to take initiative and contribute cost-saving suggestions and growth-oriented ideas.

The feeling of being treated as equals, forces them to

repose their confidence in management & accept plans

of rationalization, expansion, etc., without raisingserious objections.

Since they are treated with respect now they begin to

view the job and the organization as their own and

commit themselves to organizational activitieswholeheartedl .


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Participation

Output cannot be increased unless there iseffective co-operation between labour and

management at all levels.

The way of ensuring this is to satisfy their social

and psychological need besides economic ones. Workers participation in management is one of

the most significant modes of resolving

industrial conflicts and encouraging among

workers a sense of belongingness inestablishment where they work.


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Participation

The scheme of Joint Management Council,popularly known as Workers participation in

management, was introduced on voluntary basis.

But could not succeed.

In order to meet this unhappy state of affairs and tosecure greater measure of co-operation between

labour

and management to increase efficiency in public

service, the Government of India on October 30,1975 introduced a scheme ofworkers participation

in management at shop floor and plant levels.


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Workers Participation

In addition to these, there are voluntary schemes ofmaking the workers shareholders and Directors in

the Board of Management.

The inclusion of the concept ofworkers participation

in management in the Directive Principles of StatePolicy through the Constitution (Forty-second)

Amendment Act, 1976, gave a momentum to the

institution ofworkers participation in management.

After the constitutional Amendment the CentralGovernment expressed its intention to amend the

1975-Scheme and to provide for effective

participation of workers in production processes and

accordingly amended the scheme in January 1977.


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Workers Participation

Workers participation in management seeks to bridgethe gap authorizing workers to take part in managerial

process.

Participation may take two forms. It may be: (1)

ascending participation, and (2) descendingparticipation

In case of ascending participation, the workers may be

given an opportunity to influence managerial decisions

at higher levels through their elected representatives tojoint councils or the board of directors of the company.

But in descending participation, they may be given more

powers to plan and to make decisions about their own

work (e.g. delegation and job enlargement). This form of

participation is quite popular in many organizations.


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Implications for Participation

Workers have ideas which can be useful.

Upward communication facilitates sound decision-making.

Workers may accept decisions better if they participate in

them.

Workers may work more intelligently if they are informed

about the reasons for and the intention of decisions that aretaken in a participative atmosphere.

Workers may work harder if they share in decisions that

affect them.

Workers participation may foster a more cooperativeattitude amongst workers and management thus raising

efficiency by improving team spirit and reducing the loss of

efficiency arising from industrial disputes.

Workers participation may act as a spur to managerial

efficiency.


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Workers Participation in

Management The concept workers participation in management

(WPM) is a broad and complex one.

Depending on the socio-political environment and

cultural conditions, the scope and contents of

participation may change.

In any case, a common thread running through all

interpretations is the idea of associating employees in

managerial decision-making.

According to International Institute for Labour Studies,

WPM has been defined as, the participation resultingfrom practices which increase the scope for

employees share of influence in decision-making at

different tiers of organizational hierarchy with

concomitant assumption ofresponsibility.


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Management The concept ofworkers participation in management

indicates an attempt on the part of an employer to

build his employees into a team which work towards

the realization of a common objective.

According to Davis, it is a mental and emotionalinvolvement of a person in a group situation which

encourages him to contribute to goals and share

responsibilities in them.


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Management Workers participation in management is a resounding

phrase, bridging the past and the future. It echoes the

millennial vision of nineteenth century thinkers while

heralding the evolution of new forms of industrial

organization under twentieth century pressures. The word workersparticipation is plentifully supplied

with ideas, institutions and opinions.

Mamoria defines it as a system of communication and

consultation either formal or informal by whichemployees of an organization are kept informed about

the affairs of the undertaking and through which they

express their opinion and contribute to management

decisions.


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Management Participation results from practices which increase the

scope for employees share of influence in decision-

making at different tiers of the organizational hierarchy

with associated assumptions of responsibility.

The participation of each should strictly confine to thefield for which he is competent and concerned with.

Everybody poking his nose into everything is,

therefore, not participation, but proliferation.

This must have been the reason why a group ofpracticing managers defined workers participation

in management as involvement of workers only in

such areas of activities of the enterprises where

they can make some positive contribution for the

betterment of the enterprise.


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Management Such participation should facilitate effective utilization

of available resources and effective execution of long-

term expansion plans, including diversification.

It should facilitate the day-to-day functioning as well as

inventions and innovations.


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Need of WPM

Reduced industrial unrest

Reduced misunderstanding

Increased organization balance

Higher productivity

Increased Commitment

Industrial democracy

Development of Individuals

Less resistance to change


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Objectives of WPM

To promote increased productivity for the advantage of theorganization, workers and society at large

To provide a better understanding to employees about their role

and place in the process of attainment of organizational goals

To satisfy the workers social and esteem needs

To strengthen labour management co-operation and thus

maintaining industrial peace and harmony

An instrument for improving efficiency of the company and

establishing harmonious industrial relations

To improve the quality of working life by allowing the workersgreater influence and involvement in work and the satisfaction

obtained from work

Development of working class


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Employee Involvement

Includes- Team work (including self-managing

teams)

- Downward communication- Two-way communication

- Suggestion schemes

- Problem-solving groups- Financial participation (includes profit

sharing schemes and ESOPs)

6.Employee Participation

Documents

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