WORKERS’ PARTI. In Mgmt

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WORKERS PARTICIPATIONINMANAGEMENT


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Definitions:

The concept of WPM is a broad and complex one.Depending on the socio-political environment and

cultural conditions, the scope and contents ofparticipation change. Participation basically means- sharing the

decision-making power with the lower ranks ofthe organization in an appropriate manner

WPM is the participation resulting from the practiceswhich increase the scope for employees share ofinfluence in decision-making at different tiers oforganizational hierarch with concomitantassumption of responsibility.(International Institute

of Labour Studies) ILO: Workers participation, may broadly be taken to

cover all terms of association of workers and theirrepresentatives with the decision-making process,ranging from exchange of information,

consultations, decisions and negotiations, to moreinstitutionalized forms such as the presence of


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Pa rticip a tio n re fe rs to in v o lv e m e n t o f in d iv id u a ls o r g ro u p o f.in d ivid u a l fo r co m m o n p u rp o se it w illb e e ffe ctiv e o n ly if th e re is

.in te ra ctio n a m o n g in d iv id u a ls o r g ro u p sW o rke rs Pa rticip a tio n in m a n a g e m e n t re fe rs to th e e m o tio n a la n d

m e n ta l in vo lv e m e n t o f a n e m p lo ye e to co n trib u te fo r th e g o a ls an d

.sh a re re sp o n sib ilitie s o f a n o rg a n iza tio n

, ,Pa rticip a tio n in e ffe ct re fe rs to th e in flu e n ce o f th e su b o rd in a te s.o v e r d e cisio n s ta ke n b y th e ir su p e rio rs A su b o rd in a te ca n in flu e n ce

: ( )h is su p e rio r s d e cisio n s a t le a st in tw o w ays i b y g iv in g su g g e stio n s

-a n d id e a s fo r im p ro ve m e n t in w ork re la te d a re a s in th e fo rm o f jo in t( )co n su lta tio n s ii b y a ctu a lly p a rticip a tin g in th e d e cisio n m a kin g.p ro ce ss b e fo re a d e cisio n is ta ke n

Three groups of managerial decisions affect the workers ofany industrial establishment and hence the workers must have.a say in it.1 Economic decisions , ,methods of manufacturing automation, - , .shutdown lay offs mergers.2 Personnel decisions , ,recruitment and selection promotions, , , .demotions transfers grievance settlement work distribution.3 Social decisions , ,hours of work welfare measures questions

,affecting work rules and conduct of individual worker s safety, .health sanitation and noise control


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Collective Bargaining and Participative:Management DifferenceC o l le ct iv e b a rg ai ni ng refers to an institutionalarrangement where the representatives of the workmen

negotiate with the management on various interest related, ,issues relating to better wages bonus hours of work and

.other service conditions with right to agree or disagree

P a r t i c i p a t i o n is conceived as any process wherebyworkers have a share in reaching of managerial decision in

.enterprises This process of share may be achieved throughsuch different methods and levels of participation as

, ,collective bargaining the appointment of worker directors

,consultation autonomous work groups and particular styles.of management


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ect ves o or ers part c pat on nmanagement

Primary objective:a)industrial harmonyb)sense of commitmentc)sense of belongingnessd)good communication skillse)handles the resistanceSecondary objectivesa)Economicalb)Socialc)Psychological


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The main implications of workersparticipation in management as

summarized by ILO:

Workers have ideas which can be useful Workers may work more intelligently if they are

informed about the reasons for and the intentionof decisions that are taken in a participative

atmosphere. Unique motivational power and a greatpsychological value.

Peace and harmony between workers andmanagement.

Workers get to see how their actions wouldcontribute to the overall growth of the company.

They tend to view the decisions as `their own andare more enthusiastic in their implementation.

Participation makes them more responsible.


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er s o or ers par c pa on nmanagement

a)Increase productivityb)Increase efficiency of employee.

c)Establish industrial peaced)Establish industrial democracye)Well being of individualf)Personality developmentg)Mutual understandingh)Social well being

i)Welcome changesj)Rapid industrialization Participation:

One view is that workers or the trade unions should, as

equal partners, sit with the management and makejoint managerial decisions.

The other view is that workers should only be given anopportunity, through their representatives, toinfluence managerial decisions at various levels.


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cope an ways o par c pa on:

In practice, the participation of workers can take place by one orall the methods listed below:

Board level participation

Ownership participation Complete control

Staff or work councils

Joint councils and committee

Collective Bargaining

Job enlargement and enrichment Suggestion schemes

Empowered teams

Financial participation

Quality circles This is a group of labour and management personnelwho belong to a single department, do same or similar work, meet

periodically to discuss manufacturing problems, analyze them and findsolutions to quality problems

TQM - Total Quality Management is the management of quality, totallyand fully in all respects, small areas and all activities of organizations,right from top to bottom. It aims at continuous improvement inorganizations and focuses primarily on total satisfaction of consumers,both internal and external. The 3 terms required to make this concept:

(1)Total- Everyone associated with the company is involved incontinuous improvement including customers and suppliers

P i i f f l i i i


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Pre-requisites for successful participation:

Management and operatives/employees shouldnot work at cross-purposes i.e. they must

have clearly defined and complementaryobjectives. Free flow of communication and information. Participation of outside trade union leaders to

be avoided. Strong and effective trade unionism. Workers education and training. Trade unions

and government needs to work in this area. Trust between both the parties.

Workers should be associated at all levels ofdecision-making. Employees cannot spend all their time in

participation to the exclusion of all otherwork.

i i i f i i i


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Limitations of participation Technology and organizations today are so

complex that specialized work-roles are

required. This means employees will notbe able to participate effectively inmatters beyond their particularenvironment.

Everybody need not want participation. The role of trade unions in promoting

participative management has been farfrom satisfactory.

Employers are unwilling to share power withthe workers representatives.

Managers consider participativemanagement a fraud.


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in India: The beginning towards WPM was made with the Industrial Disputes

Act, 1947, which made Works Committees mandatory inindustrial establishments employing 100 or more workers.

The Industrial Policy Resolution adopted by the government instated that there should be some joint consultation to ensure

industrial peace, and improve employer-employee relations.(The functions of both these joint bodies were to be consultativeand were not binding on the management. The response tothese schemes was encouraging to begin with, but graduallywaned.)

A study team was appointed in 1962 to report on the working ofjoint councils and committees. The team identified somereasons for their failure-

No concrete steps were taken to remove the difficulties, orchange the pattern of participative management.

During the emergency of 1975-77, the interest in theseschemes was revived by the then Prime Minister byincluding Workers Participation in industry in thegovernments 20-point programme.

The government started persuading large enterprises to set upjoint consultative committees and councils at different levels.

The JanataGovernment who came to power in 1977 carried onthis initiative. In was again emphasized by the Congress


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,T h e n th e42nd Amendment to the Constitution w a s m a d e a n d- : , ,A rticle 4 3 A re a d s T h e S ta te sh a llta ke ste p s b y su ita b le le g isla tio n

,o r in a n y o th e r w a y to se cu re th e p a rticip a tio n o f w o rke rs in th e,m a n a g e m e n t o f u n d e rta kin g s e sta b lishm e n ts o r o th e r o rg a n izatio n s

.e n g a g e d in a n y in d u stry ,T h u s p a r t i c i p a t i v e m a n a g e m e n t i s a.c o n s t i t u t i o n a l c o m m i t m e n t i n I n d i a

, ;On May 30 1990 the government introduced the Participation of Workersin Management Bill .in the Rajya Sabha The bill requires every

- industrial enterprise to constitute one or more `Shop Floor Councils, at the shop floor level and `Establishment Council at the

.establishment level These councils will have equal representation of

.employers and employees -Shop Floor councils enjoy powers over a wide range of, .functions from production wastage control to safety hazards

.The Establishment Council enjoys similar powers The bill provides for the constitution of a Board of Management of

.every corporate body owning an industrial establishment The bill

also provides for penalties on individuals who contravene any

.provision of the bill ,In spite of all these efforts only the government and the

.academicians have been interested in participative management But.participative management is staging a comeback The compulsions of

emerging competitive environment have made employee involvement more.relevant than ever before Managers and the managed are forced to, , .forget their known stands break barriers and work in unison Managers

.and workers are partners in the progress of business


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-Workers Participation in Management in India The:major course followed are:Works Committees Works committee is the first government.measure in the country in the area of participative management The

system of works committees was introduced in the country with the, .enactment of the Industrial Disputes Act 1947 Section 3 of the Act

empowers the Central and State governments in their respectivejurisdictions to make general or special orders requiring the

employer to constitute a works committee in any industrial.establishment employing 100 or more workmen

:Joint Councils of Management The Industrial Truce, ,Resolution 1947 had recommended the formation of unit productioncommittees in industrial establishments for promoting the efficiency

.of workers and improving production The Industrial Policy Resolutionof 1948 also suggested the setting up of bipartite production.committees A model constitution for a unit production committee was

prepared by the Central government in 1948 and steps were suggested toenable the existing works committees to function as production

.committees


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Other Governmental Approaches.1 ( )The Trusteeship Approach 1966.2 ( )Board Level Participation 1970.3 Schemes of Workers Participation in Industry atthe Shop floor and ( )Plant Levels 1975.4 Schemes of Workers Participation in Management in

-Large scale Commercial and Service Organisations( )1977.5 Adding Article 43A in the Indian Constitution.6 ( )Verma Committee 1977.7 Scheme for Employees Participation in Management( )1983.8 The Participation of Workers in Management Bill( )1990


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Hurdles in The Way of Workers Participationin IndiaThe foregoing discussions reveal that ever since the

,independence of the country Government has been keen on .promoting workers participation in management in the country

,There has been a growing realisation in the country,especially in the Government circles that promotion of

workers participation would lead to increase in productivity

and would be helpful in maintaining industrial peace and.accelerating the pace of economic development With theadoption of planning as an instrument of economic and

,industrial development maintenance of cordial relationsbetween labour and management is considered all the more

. ,desirable To achieve these objectives Government embarked

upon different programmesof workers participation at, ,different intervals of time for example Works Committee

( ) ( ),1947 Joint Management Councils 1977 Shop Floor and Plant( ) . ,Councils 1983 and so on However experience has shown that

,these schemes which were launched so enthusiastically have.on the whole proved to be a failure This has been supported

by the findings of the studies conducted in regard to their


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Forms of Participation in Western CountriesA review of the existing literature confirms the extent of intereston participative management in various countries under different

- . ,socio economic systems However the research findings on various. ,facets of participation are not consistent These are the objectives

, , ,scope processes extent of involvement as well as the outcomes in

, , ,terms of change in attitude and behaviour motivation commitment job, , .satisfaction efficiency productivity turnover and profitability

,In the West formal representative participation has taken the:following forms

.1 Joint Consultation

.2 Joint Decision Making

.3 Workers Control

WORKERS’ PARTI. In Mgmt

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