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Workers Participation in Management

Worker's participation in management refers to workers having a say in organizational decision making. It allows workers to be involved, listened to, and recognized in their work environment. There are several levels of participation ranging from simply informing workers to workers jointly making decisions with management. Common forms of participation include suggestion schemes, work committees, joint management councils, work directors, co-partnership, joint councils, and shop councils. While worker participation was emphasized after Indian independence, it has often faced resistance from employers and not achieved its full potential.

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0% found this document useful (0 votes)
161 views6 pages

Workers Participation in Management

Worker's participation in management refers to workers having a say in organizational decision making. It allows workers to be involved, listened to, and recognized in their work environment. There are several levels of participation ranging from simply informing workers to workers jointly making decisions with management. Common forms of participation include suggestion schemes, work committees, joint management councils, work directors, co-partnership, joint councils, and shop councils. While worker participation was emphasized after Indian independence, it has often faced resistance from employers and not achieved its full potential.

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Worker’s Participation in Management

The concept of worker’s participation in management is considered as a mechanism,


where workers have a say in the decision making process of an organization/enterprise.
Workers participation is an essential ingredient of industrial democracy.
Worker’s participation in management meets the psychological needs of the workers to
a great extent. It is a human need to be observed, listened and get recognitions in the
environment where he works.
That is why it may also be treated as the process of delegation of authority in the general
areas of managerial functions. The concept of worker’s participation of management
crystallizes/symbolizes the concept of industrial democracy.
According to Keith Davis, “Participation refers to the mental and emotional
involvement of a person in a group situation which encourages him to
contribute to group goals and share the responsibility of achievement.”
Objectives
a) To secure full recognition of the workers to develop a sense of importance,
involvement and a feeling of belongingness to enlighten workers to know better
about their role in the organization.
b) To improve the relations between management and the workers.
c) To provide the workers an environment where they can develop freely and
recognize their own potential.
d) To get their involvement in safety measure and environmental issues,.
e) To improve employee’s pride, morale and dignity.
Levels of Participation:
Worker’s participation is possible at all levels of management; the only difference is that
of degree and nature of participation. It may be vigorous at low level and faint at top
level.
Broadly speaking, there are following five levels of participation.
1. Informative Participation: This refers to management’s information sharing
with workers on such items those are concerned with workers. Balance Sheet,
production, economic conditions of the plant etc., are the examples of such items. It
is important to note that here workers have no right of close scrutiny of the
information provided and management has its prerogative to make decisions on
issues concerned with workers.
2. Consultative Participation: In this type of participation, workers are consulted
in those matters which relate to them such as work, safety and health. Here, the role
of workers is restricted to give their views only. However, the acceptance and non-
acceptance of these views depend on management. Nonetheless, it provides an
opportunity to the workers to express their views on matters involving their interest.
3. Associative Participation: Here, the role of the workers’ council is not just
advisory unlike consultative participation. In a way, this is an advanced and
improved form of consultative participation. Now, the management is under a moral
obligation to acknowledge, accept and implement the unanimous decision of the
council.
4. Administrative Participation: In the administrative participation, decisions
already taken are implemented by the workers. Compared to the former three levels
of participation, the degree of sharing authority and responsibility by the workers is
definitely more in this participation.
5. Decisive Participation: Here, the decisions are taken jointly by the management
and the workers of an organization. In fact, this is the ultimate level of workers’
participation in management.

Strategies/Methods/Schemes/Forms of workers’ participation in


management
The various forms of workers’ participation in management currently prevalent in the
country are:
1. Suggestion schemes: Participation of workers can take place through suggestion
scheme. Under this method workers are invited and encouraged to offer suggestions
for improving the working of the enterprise. A suggestion box is installed and any
worker can write his suggestions and drop them in the box. Periodically all the
suggestions are scrutinized by the suggestion committee or suggestion screening
committee. The committee is constituted by equal representation from the
management and the workers. The committee screens various suggestions received
from the workers. Good suggestions are accepted for implementation and suitable
awards are given to the concerned workers. Suggestion schemes encourage workers’
interest in the functioning of an enterprise.
2. Works committee: Under the Industrial Disputes Act, 1947, every establishment
employing 100 or more workers is required to constitute a works committee. Such a
committee consists of equal number of representatives from the employer and the
employees. The main purpose of this committee is to provide measures for securing
and preserving amity and good relations between the employer and the employees.
Functions: Works committee deals with matters of day-to-day functioning at the
shop floor level. Works committees are concerned with conditions of work such as
ventilation, lighting and sanitation, amenities such as drinking water, canteens,
dining rooms, medical and health services, educational and recreational activities,
safety measures, accident prevention mechanisms etc.
3. Joint Management Councils: Under this system Joint Management Councils are
constituted at the plant level. These councils were setup as early as 1958. These
councils consist of equal number of representatives of the employers and employees,
not exceeding 12 at the plant level. The plant should employ at least500 workers. The
council discusses various matters relating to the working of the industry. This
council is entrusted with the responsibility of administering welfare measures,
supervision of safety and health schemes, scheduling of working hours, rewards for
suggestions etc.
Wages, bonus, personal problems of the workers are outside the scope of Joint
management councils. The council is to take up issues related to accident prevention,
management of canteens, water, meals, revision of work rules, absenteeism,
indiscipline etc.
4. Work directors: Under this method, one or two representatives of workers are
nominated or elected to the Board of Directors. This is the full-fledged and highest
form of workers’ participation in management. The basic idea behind this method is
that the representation of workers at the top-level would usher Industrial
Democracy, congenial employee-employer relations and safeguard the workers’
interests. The Government of India introduced this scheme in several public sector
enterprises such as Hindustan Antibiotics, Hindustan Organic Chemicals Ltd etc.
5. Co-partnership: Co-partnership involves employees’ participation in the share
capital of a company in which they are employed. By virtue of their being
shareholders, they have the right to participate in the management of the company.
Shares of the company can be acquired by workers making cash payment or by way
of stock options scheme. The basic objective of stock options is not to pass on control
in the hands of employees but providing better financial incentives for industrial
productivity. But in developed countries, WPM through co-partnership is limited.
6. Joint Councils: The joint councils are constituted for the whole unit, in every
Industrial Unit employing 500 or more workers; there should be a Joint Council for
the whole unit. Only such persons who are actually engaged in the unit shall be the
members of Joint Council. A joint council shall meet at least once in a quarter. The
chief executive of the unit shall be the chairperson of the joint council. The vice-
chairman of the joint council will be nominated by the worker members of the
council. The decisions of the Joint Council shall be based on the consensus and not
on the basis of voting.
7. Shop councils: Government of India on the 30th of October 1975 announced a new
scheme in WPM. In every Industrial establishment employing 500 or more
workmen, the employer shall constitute a shop council. Shop council represents each
department or a shop in a unit. Each shop council consists of an equal number of
representatives from both employer and employees. The employers’ representatives
will be nominated by the management and must consist of persons within the
establishment. The workers’ representatives will be from among the workers of the
department or shop concerned. The total number of employees may not exceed 12.
Functions of Shop Councils:
I. Assist management in achieving monthly production targets.
II. Improve production and efficiency, including elimination of wastage of man
power.
III. Study absenteeism in the shop or department and recommend steps to reduce it.
IV. Suggest health, safety and welfare measures to be adopted for smooth
functioning of staff.
V. Look after physical conditions of working such as lighting, ventilation, noise and
dust.
VI. Ensure proper flow of adequate two way communication between management
and workers.

WORKERS’ PARTICIPATION IN MANAGEMENT IN INDIA


Introduction
Workers’ participation in Management in India was given importance only after
Independence. Industrial Disputes Act, 1947 was the first step in this direction, which
recommended for the setting up of works committees. The joint management councils
were established in 1950 which increased the labour participation in management. Since
July 1975 the two-tier participation called shop councils at shop level and Joint councils
were introduced. Workers’ participation in Management Bill, 1990 was introduced in
Parliament which provided scope for upliftment of workers.

Reasons for failure of Workers participation in India

I. Employers resist the participation of workers in decision-making. This is because


they feel that workers are not competent enough to take decisions.
II. Workers’ representatives who participate in management have to perform the dual
roles of workers’ spokesman and a co-manager. Very few representatives are
competent enough to assume the two incompatible roles.
III. Generally Trade Unions’ leaders who represent workers are also active members of
various political parties. While participating in management they tend to give
priority to political interests rather than the workers’ cause.
IV. Schemes of workers’ participation have been initiated and sponsored by the
Government. However, there has been a lack of interest and initiative on the part of
both the trade unions and employers.
V. In India, labour laws regulate virtually all terms and conditions of employment at the
workplace. Workers do not feel the urge to participate in management, having an
innate feeling that they are born to serve and not to rule.
VI. The focus has always been on participation at the higher levels, lower levels have
never been allowed to participate much in the decision-making in the organizations.
VII. The unwillingness of the employer to share powers with the workers’ representatives,
the disinterest of the workers and the perfunctory attitude of the government
towards participation in management act as stumbling blocks in the way of
promotion of participative management.

Measure for making participation effective

a) Employer should adopt a progressive outlook. They should consider the industry as a
joint endeavor in which workers have an equal say. Workers should be provided and
enlightened about the benefits of their participation in the management.
b) Employers and workers should agree on the objectives of the industry. They should
recognize and respect the rights of each other.
c) Workers and their representatives should be provided education and training in the
philosophy and process of participative management. Workers should be made
aware of the benefits of participative management.
d) There should be effective communication between workers and management and
effective consultation of workers by the management in decisions that have an
impact on them.
e) Participation should be a continuous process. To begin with, participation should
start at the operating level of management.
f) A mutual co-operation and commitment to participation must be developed by both
management and labour.

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