PARTICIPATIVE MANAGEMENT

Introduction

Workers participation provides a platform for formal and informal communication where workers know what is going on in the organization and they can suggest and communicate their opinion to the management.

Participation is about employees playing a greater part in the decision making process

Definition

Newstrom and Davis define participation as “the mental and emotional involvement of people in group situations that encourages them to contribute to group goals and share responsibility for them.”

Important features in the definition: Mental and emotional involvement Motivation to contribute Acceptance of responsibility

Factors Influencing Participation Subject matter of participation

Level of participation

Extent of authority

Personal characteristics

Levels of Participation

Informative

Consultative

Associative

Administrative

Decisive

Key to Successful Participation

Top management support Employee support Free flow of information Strong and effective trade unionism Workers education and training Associate at all levels Benefits greater than costs Employee ability Employee interests

Forms of Participation

Suggestion schemes Works committees Joint Management Councils (JMC) Worker Directors Co-partnership Collective Bargaining Grievance Procedure Job enlargement and enrichment Quality Circles Total Quality Management Self Managing teams Financial Participation

Participation through Quality circle It is a group of employees that meets regularly to

solve problems.

A quality circle consists of 7-10 people from the same work area who meet regularly.

Membership is voluntary

Members are trained in problem solving techniques, such as, brainstorming, cause and effect analysis, scatter diagrams, etc.

Benefits of Participation

Mutual understanding Improves performance Promotes better industrial relations Increases job satisfaction Awakening of employees Satisfies employee expectations Better communication Openness to change Encourages creativity and innovation

Lack of success of Participative management in India

Restriction of employees in decision making process, due to assumption that they are not competent enough

Due to non fulfillment of lower order needs, majority of workers are not motivated enough to assume higher responsibilities in the organization

The union representatives are frequently members of political parties who put their vested political interests before the interest of workers

The focus has been on participation at higher levels.

Limitations of Participation

Employees may become too independent

Occasional failure may demotivate employees

Great difficulty in adjusting

Rather than acting as partners, managers may play role of a judge and a critic

Continued…

Potential problems can be overcome by basic guidelines such as: Participation should move from simple issues to more

complex one Provide employees with adequate training Do not force the workers to participate Communicate clearly the areas of decisional freedom Realistic goals must be set The philosophy behind participation should always be kept

in mind Decisions should never be manipulated in the name of

participation

INDUSTRIAL RELATIONS

Industrial Relations

Industrial relations is concerned with the systems and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers and to regulate the ways in which employers treat their employees.

Features of IR

Outcome of the employment relationship Includes both individual and collective relations Complex and multidimensional Dynamic Different from HRM Composite result Parties Main purpose to maintain harmonious relations

between management and labour The central and state government evolve,

influence and regulate IR Wide scope

Importance of IR

Industrial peace High morale Mental revolution New programmes Reduced wastage Higher productivity Industrial democracy Collective bargaining Fair benefits to workers Facilitation of change

Approaches to Industrial Relations Psychological approach Sociological approach VV Giri Approach Gandhian Approach Unitary Approach Pluralistic Approach Marxist Approach HRD Approach

Parties to Industrial Relations

Employees and their associations

Employers and their associations

The government and its various agencies

TRADE UNIONS

Introduction

Trade union is a voluntary association of workers which is formed to protect the rights and interests of workers, to prevent exploitation of workers by the employer and to establish good relations between the employer and employees.

“Strength lies in unity”

Features of Trade Union

Association Voluntary Permanent Collective action Common interest Changing character Aim

Trade Union Phase in India

Pre-1918 phase 1918-1924 phase 1925-1934 phase 1935-1938 phase 1939-1946 phase 1947 and since

Trends in the Trade Union Movement in India

Attitudinal change

Depoliticisation of union

Multiplicity of Unions

Outside Leadership

Professionalization of Trade union movement