WORKERS PARTICIPATION
IN MANAGEMENT
BY:-
ALISHA BHALME eMBA-
NEHA SAMANT MMS-
ROHAN VISHWASRAO eMBA- 9034
VINITA KRISHNAMURTHI eMBA- 9181
Workers Participation in Management is a system of
communication and consultation, either formal or informal, by
which employees of an organisation are kept informed about the
affairs of the organisation and through which they express their
opinion and contribute to management decisions.
It is industrial democracy in action based on the principles of
equity, equality and voluntarism.
It is distribution of social power in industry so that it tends to be
shared among all who are engaged in the work rather than
concentrated in the hands of minority.
Associating representatives of workers at every stage of decision-
making
Workers participation may broadly be taken to cover all
forms of association of workers and their representatives
with the decision making process ranging from exchange
of information , consultations, decisions and negotiations
to more institutionalized forms such as the presence of
workers member on management or supervisory boards
or even management by workers themselves
Workers' participation in change strategy can facilitate
acceptable solutions with a view to secure effective and
smooth implementations of decisions.
Workers' participation can encourage communication at
all levels.
Joint decision- making ensures the there will be
minimum industrial conflict an economic growth can be
free form distracting strife.
Workers' participation at the plant level can be seen as
the first step to establishing democratic values in society
at large
Board Level
Ownership participation
Complete control
Staff or works councils
Joint councils and committees
Collective bargaining
Suggestion schemes
Quality circles
Empowered teams
TQM
Financial participation
[Link] Council Model
Staff for works council is exclusive bodies of the employees.
There may be one council for the entire organization or a
hierarchy of works council from shop floor to the Staff Board.
Members are elected by the employees of the relevant
sections.
They have different functions in the management of an
enterprise, ranging from electing information on
management’s intentions to full share in decision-making.
Here there is a basic assumption of a harmony of interests, at
least on key issues.
[Link] Management Councils Model
Joint bodies comprising the representatives of the
management and employees.
Functions: Range from decision-making on some issues to
merely advising the management.
In Britain and India, the JMCs are commonly used form of
workers’ participation in management.
Role: Advisory and consultative, with decision-making
being left to the top management.
3. Workers Self-Management Model
Institutional type is characterized by a substantial degree of
workers’ participation on the main decision-making bodies,
coupled with either a system of workers’ ownership or the
right to use the assets of the enterprise.
A system of self-management in Yugoslavia is based on this
concept
Informative Participation
o Sharing of information
o E.g. information about balance sheets, economic conditions,
production figures etc.
Consultative Participation
o Workers representatives are consulted on matters relating
to welfare facilities. Members are consulted on matters such
as
o Welfare amenities and Safety measures
o Adoption of new technology and the problems emanating
from it
Associative Participation
o Management accepts the suggestions of the council for
solving the problem on hand
o Management is obliged to accept and implement if the
committees take unanimous decisions regarding a problem
Administrative Participation
o In this the decision is already taken and the councils have a
right to choose the method of implementing it
o Welfare measures, preparation of work schedules etc.
Decision Participation
o It is the highest form of participation. The delegation of
authority and responsibility of managerial function is
maximum in matters like
◦ Economic, Financial and Administrative policies
◦ The decisions are mutually taken
The first major step came during the enactment of Industrial
Disputes Act, 1947
The Industrial Policy Resolution had suggested that labour
should be consulted in all matter concerning industrial
production
Further the scheme of Joint Management Council was
formulated in 1957
Two forms:
The Works Committee – set up under the Industrial Disputes Act,
1947
o Consultative bodies
o Issues like lighting, ventilation, temperature, sanitation, medical
facilities, canteen, educational and recreational activities etc.
o Comprises of President, Vice President, Secretary, Joint
Secretary
o E.g. Tata Iron and Steel Company, Hindustan Lever
The Joint Management Councils - set up as a result of the
recommendation of Second Five-year plan
o To provide welfare facilities to the workers
o To educate workers
o To satisfy their psychological needs
o To improve their operational efficiency
o The company should have a well organized trade union
o Trade unions should be affiliated to one of the central
federations
o It is formed on agreement of the management and workers
o E.g. Tisco
CASE STUDY ON TISCO
Closer association of employees with management at
TISCO, began in 1919 and was formalized in August 1956
The purpose was to promote increased productivity, provide
a better understanding to the employees of their role and
importance, and to satisfy the urge for self expression.
The scheme as set up at TISCO consist of a three-tiered
system with joint department councils (JDCs) constituted at
the departmental level. Next, joint works councils (JWC) for
the entire work, and at the top the joint consultative council
of management (JCCM). The specific functions of these
three bodies were as follows:
JDCs were “to study operational results and production problems,
advise on the steps deemed necessary to promote and rationalize
production, improve productivity and discipline and economize
cost. Promotion of welfare and safety, encouragement of
suggestions and improvement of working conditions also fell within
their purview.”
JWCs were “ to discharge special function of reviewing every
month the working of JDCs and other committees such as
Suggestion Box Committee, Safety Committee, Canteen Managing
Committee, etc.”
JCCM was given the task of advising management on productivity
and welfare and also looking at matters referred to by JDCs and
JWCs
In order to ensure that these committees did not overlap
the functions of other committees, separate task groups
were formed.
Special courses were offered to prepare both
management and union representatives to effectively
utilize the facility.
TISCO's experience with workers' participation has been
satisfactory. From 1957 to the middle of 1972 JDSs have
discussed a total of 14,104 suggestion of which 70.3 per
cent have been implemented. These suggestions have
covered a wide range of topics and issues, but the most
important point to remember, perhaps, is that the councils
have been successful in involving workers equally in the
process of production.
Increased use of technology in industry necessitated the
growing co-operation of workers because of the complex
operations of production.
The changed view that employees are no longer servants but
are equal partners in their effort to attain organisation goal.
The growth of trade unions which would safeguard the
interest of workers and protect them against possible
exploitation by their employers.
The growing interest of the Government in the development
of industries and the welfare of the workers.
Congenial Working environment to motivate workers to give
whole-hearted co-operation with a view to ensuring its efficient
operation
The objectives to be achieved should not be unrealistically high,
vague or ambiguous but be achievable and clear
There should be mutual trust and confidence for the scheme to be
effective
The trade union movement should be developed on sound lines
The decisions taken at different participatory forums must be
sincerely carried out in a stipulated period of time
There must be free flow of information between labour and
management throughout the enterprise
Ideological differences between Employees and Employers
regarding the degree of participation
Failure to Imbibe the Spirit of Participation by the Parties
Multiplicity of Participative Forms
Lack of Strong Trade Union
Unhappy Industrial Relations
Illiteracy of Workers and non-co-operative attitude of the working
class
Delays in implementation of the decisions of participative bodies
WPM gives workers a feeling that he is an integral and an
important part of the organisation
This creates a climate in which he may get reasonable
opportunities to show his worth
Management should have a constructive attitude and
should not regard trade unions as an obstacle
Government should take responsibility for the provision of
a satisfactory workers education programme
THANK YOU
