CHAPTER VI

Summary and Conclusions

Introduction

Workers participation In management as an integral part on the

industrial system was recognised in 1984-85 though the generic

philosophy of workers participation in management was already a part of

the directive principle of state policy in the Constitution Article 43-A.

But workers participation in management had not made much impact in

india. In the meantime government of india began to introduce new

policy initiatives since early 1980's in terms of procedural and structural

reform in the industrial sector culminating in the new industrial policy of

1991 to make the indian industries attain international competetiveness,

sustained growth in productivity and efficiency. To facilitate the process

of restructuring the industrial sector, concomitant labour policy initiatives

directed towards amending the Trade Union Act and the Industrial

Disputes Act, were taken.

The focus of the research therefore, is on assesing the perception

of the participants whether the environment created by the new policy

packages would be conducive for the growth of workers' participation in

management and the participative culture. This chapter summarises the

problem of the study and its objectives, the methodology and major

findings. The implications for pollcy alternatives that emerge out of the

findings are then discussed as also the suggestions for areas of future

research.

The Concept

Participative management concept has been associated with differing

practices in real world situations, I t means different degrees and types

of involvement by workers in management, "mental and emotional

involvement in the affairs of the organistion" "Psychological concept of

Power-eqalizationu "tool for achieving greater organizational health and

effectiveness". Though different authors define the concept differently in

degrees, purposes and processes, the central Idea remains the same viz

that workers partlcipaion in management is concerned with increasing

employees' role En decision making or management of the enterprise.

6.1 .I Object of the Study

The objective of the study is to assess the economic, industrial

labour and organisational climate In the light of the reform policy

packages for participation, as perceived by the workers, management

personnel and trade union representatives, and to formulate a strategy

for effective implementation of the scheme of workers participation in

management.

6.1.2 Methodology

6.1.2.1 Sample

The twenty nine organisations implementing the scheme of workers

participation were stratified into public and private sector companies and

three from each were selected at random; at the first stage, from each

stratum a proportionate sample was randomly drawn. One hundred

workers, ten management personnel and ten trade unions were selected

on random basis. In all 600 workers, 60 management personnel and

60 trade union representatives were selected for primary data.

Information was collected on three basic domains viz policy domain,

structural domain and environmental domain.

With reference to the following statements the workers in the

public and private sectors differ in their perception as t o whether they

facilitate particpatory management or not.

1. Effective participation can be achieved by legislative compulsion.

2.' Effective participation can be achieved by voluntarism.

3. The Industrial Relations Bill is antilabour.

4. Government reform programmes enhance participation.

5. Privatisation will improve participation culture.

6. Transition from tripartism to bipartism improves participation.

7. Workers and management respect the rights 'and responsibilities

of each other.

8. Workers participate without fear of victimisation.

9. Workers have the propensity and competence to do fruitful par-

ticipation.

10. Participation through representatives creates communication prob-

lem.

11. Limited representation of outsiders in the union will enhance the

degree of role confirmity of the workers.

12. The scheme of workers participation is mere consultation without

commitment.

6.1.2.2 Tools

I t is a 26 items Likert type scale technique to score the

perceptionslattitudes of the participants.

6.1.2.3 Data Analysis.

For analysis of data summated ratings statistical were employed:

The following mean and standard deviation, coefficient of variation, chi

square tests.

6.1.2.4 Validity

Content and Construct validity were established.

6.1.2.5 Reliability

Test-retest technique was used to measure the reliability. The

reliability coefficient worked on was 0.92.

6.2 Summary of findings and conclusions:

The major findings of the study are summed up below:-

6.3 A model for development of a strategy for workers

Participation in management,

India is opening itself to the world in terms of trade and

technology as a result of new labour, economic and industrial policy

initiatives. The policy thrust aims at creating an abiding value of

pursuit of excellence to match the world class companies. I t aims to

develop a "work climate" in which the individuals find opportunity to be

more creative and to come up with ideas beneficial to the organisation,

to increase the degree of "we" feeling or cohesiveness; to provide the

workers with an overall organisational point of view; to reduce the

amount of conflict and hostility. A long run and mutual approach to

Competitiveness would warrant labour to accept the need for continued

improvement in the productivity and commitment to quality, expansion of

a sustained commitment to joint labour management activities, such as

training, quality improvement. work design, cost control and cost

effectiveness, and other related activities tailored to the specific needs

and competitive conditions of the enterprise concerned.

Based on the above emerging scenario and the findings of the

present study scenario a model of participative management is suggested

here below.

The following objectives of participative management are considered

in the model:

a) Harmonious and effective industrial relations to accomplish con-

structive relationships

b) Commitment to work and convergence of individual and organisa-

tional goals; abiding values of pursuit of excellence

c) Employees self development in terms of skills and career

d) Perspective of the economy industry and labour

e) A genuine concern for human values that can safeguard technol-

ogy making man a mere instrument of production

f) Work related and interest related issues

g) The inclusion of major subjects such as wages, norms of ef-

ficiency etc within the scope of joint consultative machinery

h) Adequate training of workers representatives.

T h e Model for workers participation in management is

diagramatically represented a s under

To facilitative operationalising the model, participation is essentially

considered as sharing of power, reflected in information sharing, equity

participation, consuitation, joint control and joint decision making and at

strategic levels representation of workers in the board. But basic to

all forms, level, content and representation is human resource

development through worker education, training and development for

worker, management and trade union representatives. Though the

Central Board for Workers Education (CBWE) is the nodal agency for

worker education, it should be upgraded into a centre for participative

management training and education and its curriculum should be

designed in collaboration with Work Education Departments of universities

and various recognised labour institutes, besides a few selected

industrial houses. This kind of university-industry-institutes interaction has

not been attempted to make HRD more purposeful as a starting point

for effective participation at different levels.

Participative management should provide equal importance to both

interest related issues and work related issues unlike as in the present

traditional industrial relations culture where workers, management and

unions are active in protecting the interests and are passively

participating in work related issues. To deal with the basic

interest-related issues such as wage structure, age differentials fringe

and other benefits, medical health, safety measures, education,

recruitment, and personnel policies, norms of discipline and dispute

resolution there can be three forums at

i) National-level council

ii) Enterprise level council

iii) Unit level council for work related issues.

There is no need for a National level set up. There has to be a

corporate . level council to deal with product mix, sales and export

strategy, expansion schemes, introduction of new technology and new

projects. At this level there will be information sharing, consultation,

joint decision making. The second tier will be the unit-level council

which will deal with:

i) Technical areas like planning, implementation, fulfilment of objec-

tives and review of monthly targets and schedules, material

supply, quality, storage and inventory, house keeping, suggestion

schemes, quality circles,(QC's),capacity utilisation, design, develop-

ment, process development, profit loss statement, balance sheet

etc.

ii) Economic areas such as incentives, cost effectiveness, value

analysis, methods improvement, budget, operating results revew,

plant performance in financial terms, labour and management

costs, market analysis, overtime problems of casual and tem-

porary labourers, women workers etc.

iii) Welfare areas such as medical benefits, safety measures,

transport facilities, sports and games, housing, education, training

career development, canteen, absenteeism, soci'al and cultural ac-

tivities etc.

Iv) Environmental areas such as pollution control, community

development projects, control of gambling, drinking and social

extravagance, development of ancillary units, sub contracting etc.

Shop Level Council

All matters which are significantly important for running successfully

a production concern or a unit in a commmercial/service organisation

will be included. Some issues will come under joint decision making

while other issues initially may become the subject matter of

consultation and information sharing.

The industrial relations environment in the country is undergoing a

period of major changes with accents chainging towards quality and

productivity improvements and competitive environment. The New

Industrial Relations Bill, Trade Union Act Amendments are awaited to

achieve the above objectives. In the circumstances the presence of a

reasonable degree of mutual understanding, goodwill on all sides

covering workers, management and trade unions becomes imperative.

The model outlined above has been worked out to move in this

direction.

Areas for Future Research

The centre of focus has to turn to education and traning and self

development of workers, management personnel and trade union leaders

and office bearers. The Central Board for workers education and its

regional directorates have been conducting training programmes and

catering to the educational needs of the workers. At the regional .level

the following courses are being conducted.

i) Workers teacher training course

ii) Leadership development course

iii) Unit level class/functional adult Literacy class

iv) Joint Labour-management programme

v) Participative management programme

vi) Need-based training programme

vii) Role of public sector in national development

viii) Quality of life

ix) Supervisory development

x) Changing role of trade unions

xi) Labour Legislations.

Though various modules have been designed these may have to be

updated in tune with the new economic policy, industrial and labour

policies. Since education, training and self development will form the

fulcrum for future development of the scheme of workers participation,

research may be conducted in redesigning the syllabus of the central

board of workers education to make it an effective instrument of

workers participation in management.

A study of Indian ethos and Indian values for organizational

excellence would help to evolve a positive work culture and work ethic

for effective workers participation in management. The following aspects

relating to participative management may also be studied

- Future role of trade unions and effective participative rnanage-

ment

- Dilution of public sector, employee morale and workers' par-

ticipation in management

- Propersity of employees to resist change

- Right work ethos, work ethic

- Effective organisations and workers participation management

Corporate goverance by censunsus - a decision making tool

for effective participation

Participation for excellence

Should personnel management combine the function of in-

dustrial relations for effective participation

Employees identification and organisations success

Workers and risk management

Role effectiveness through self awareness

Internalisation of organizational culture

Concept of scientific management and workers participation in

management

fostering work culture to improve productivity.

6.5 Conclusion

Studies conducted on workers participation in India have revealed

that most of the mechanism in operation is voluntary in character and

statutory mechanisms are largely dormant. 1Vork related issues are

mainly taken up through suggestion schemes, quality circles (QC) and

small group activities while interest related issues are taken up through

collective bargaining system. Consultative mechanism thrive in areas

where management is willing to share power. Centralised systems do not

nuture workers participation. Top managements commitment is also an

essential ingredient for participative climate. The New Economic Policy

(NEP) and the New Industrial Policy (NIP) were largely perceived by

workers as threats while management personnel perceived them as

being conducive for growth in productivity, excellence and progress and

hence would contribute to the promotion of participative management.

The issues which have got a great bearing, on the success of

workers participation in management, on the basis of the perception of

the participants, needs to be reviewed as labour is likely to resist the

changes- sought to be brought about, will only to worsen the already

troubled industrial relations situation. In order to motivate labour in a

greater effort and nourish the productivity culture, the management-labour

relations must be 'humanistic not paternalistic, communicative not

secretive, and cooperative not conflictual". Commitment and empowerment

feed on each other. Only committed employees can be aware of what

is happening in the company, its policies, values, philosphy. Only then

can they identify themselves with the organisation. The entire labour

policy needs to be reviewed on a priority basis as the trade union

might make the labour issue the biggest challenge to the reform

process.