Workers Participation in Management

Meaning

Workers’ participation in management means giving scope for workers to influence the managerial decision-making process at different levels by various forms in the organisation.

The principal forms of workers’ participation are

information sharing, joint consultation, suggestion schemes, etc.

Redistribution of power between management and workers in the direction of industrial democracy

Worker’s participation arrangements resulting into the creation of

various participative forums to associate workers with management

v/s Participative management

Manager’s specific style in which he interacts with his people, leadership pattern

Objectives of Workers participation in management

1. Economic objective

2. Social Objective

3. Psychological Objective

1.Aware of Democratic right to influence the managerial decisions

2. Raise worker’ level of motivation and commitment (own decisions)

3.Cross-fertilisation and speedy communication of ideas

4. Avoid conflict and Foster better co-operation between labour and management.

Importance of Workers’ Participation in Management1. Mutual Understanding

2. Higher Productivity

3. Industrial Harmony

4. Industrial Democracy (right of self expression and opportunity to communicate views on policies, worker as responsible partner in decision making)

5. Less Resistance to change

6. Creativity and Innovation

Forms/level/degree of ParticipationCommunication : to give and get info (sharing

)

Consultation : exchange opinions and views before decision taken

Co-determination : joint decision making

Self management : enjoying complete authority right from decision making to execution

Workers Participation in Management in IndiaIndirect Representative : introduced by

govt through legal provisions or notifications.E.g Works Committee,Joint Management

CouncilWorker’s director etc.

Direct Participation : opportunity for each and every worker to participate in management through variety of mechanisms like suggestion schemes, small group activity ,quality circles etc.

Works Committee (1947)The industrial disputes act, 1947 provides for

the setting up of works committee consisting of representatives of management and workers

Establishment employing 100 or more workmen or any day on preceding 12 months.

It meets frequently for discussion on common problems of the workers and the management.

After discussion, joint decisions are taken

problems of day to day working

List of items WC can deal withConditions of work such as ventilation,

lighting, temperature and sanitation

Amenities such as drinking water, canteen, dining ,crèches, rest rooms, medical and health rooms services

Safety and accident prevention, occupational diseases and protective equipment.

Adjustment of festivals and national holidays.Administration of welfare funds.

Educational and recreational such as libraries, reading rooms, cinema-shows, sports, games, community welfare and celebrations, games,

Implementation and review of decisions arrived at meeting of works committees

Items excludedWages and allowancesBonusProfit sharingWork load fixationRetrenchment or layoffHousing servicesRetirement benefits, PF , gratuity etc.

Reasons for failure of WCExclusion of imp itemsLack of competence of representativesInter union rivalryRecommendations are just advisory in

natureNo machinery to enforce the decision

Joint Management Council(1958)Consists of equal number of

representatives of management and employees ,not exceeding 12 in all.

Employees Representatives nominated by recognized trade union

AN UNDERTAKING MUST MEET THE FOLLOWING REQUIREMENTS FOR SETTING UP JMC’s

It must have 500 or more employees.It should have a fair record of industrial

relations.It should have a strong and well

organised trade union.Willingness of employers, workers and

trade unions .

FEATURES OR FUNCTIONS of JMC1. Consultative Functions -council

consulted by management on : Administration of standing ordersNew methods of productionRetrenchmentClosure, reduction in or cessation of

operation

2.Information –receiving and suggestion making functions:

General economic situation.The state of market, production and sales

programmes.Organisation and general running of the

undertaking.The annual balance sheet and profit and loss

account statement and connected documents with explanations.

Methods of manufacture and worklong term plan for expansion etc.

3.Administrative functions : Welfare measuresSupervision of safety measuresOperation of vocational training and

apprenticeship schemesPreparation of schedules of working hours ,

breaks , holidaysPayment of rewards for valuable suggestions

Reasons for unsatisfactory working or partial successTrade union fear of loosing powerWeak representativesEmployers who already have WC and TU

find it superflous

Workers’ Directors(1970)Workers’ representative on the board of

directors of public sector enterprise and nationalized bank

Worker director is elected by the most representative TU

Reasons for failureWd’s were ill equipped to understand the

intricacies of board level mattersSecrets might be leaked outUnion opposition

Worker Participation scheme(1975)SHOP COUNCILSFor each dept or shop floor, establishment

having more than 500 workmenEach council consists of equal number of

representatives of employers and workers.

Functions :Assistance to management in achieving

monthly/yearly production targetsImprovement of production-elimination of

wastage and optimum utilization of resources

Study of absenteeism in shops/dept and steps to reduce that

Assistance in maintaining general discipline Physical conditions of working etc.Welfare and health measuresTwo way communication

JOINT COUNCILSOperate for industrial unit as a whole,

more than 500 workmenThe chief executive of the unit is the

chairman of the JCMeets at least once in quarterDecision on the basis of consensus

Functions:Optimum productionMatters not solved in shop council or having

bearing on another shop/deptDevelopment of skills of workmenAwarding of rewards for valuable suggestionsGeneral health, safety and welfare measures

for the unit or the plant

Direct participationTwo way communication: more imp in

knowledge workersSuggestion schemes5S concept : Japan for TQM-house

keeping practices Shitseke: discipline- maintain and review standards Seiton : orderliness –set in order Seiketsu: standardization of work practices Seiri: clearing (sorting) – keep only essential items

rest discarded Seiso: sweeping/washing,cleanliness of workplace

PDCA concept- to improve organizational effectiveness

Plan-set targetDo-work to meet targetCheck : target achieved or notAct –to remove difficulties or modify( to

improve organizational effectiveness)

Quality of work life (QWL): joint programmes of cooperation or ‘working together’ on the shop floor to improve quality of work life

-refers to favourableness or unfavourableness of a job environment for employees in the organization

E.G Adequate and fair compensation Safe and healthy working conditions Opportunity to use and develop human capacities Opportunity for career growth Social integration in work force etc.