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Traditionally the concept of Workers Participation in Management (WPM) refers to

participation of non-managerial employees in the decision-making process of the

organization. Workers participation is also known as labourparticipation or employee

participation in management. In Germany it is known as co-determination while in

Yugoslavia it is known as self-management. The International Labour Organization has been

encouraging member nations to promote the scheme of Workers Participation inManagement.

Workers participation in management implies mental and emotional involvement of workers

in the management of Enterprise. It is considered as a mechanism where workers have a say

in the decision-making.

4.1.1 MEANING AND DEFINITION OF WPM:

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.

Three groups of managerial decisions affect the workers of any industrial establishment and

hence the workers must have a say in it.

1. Economic decisions methods of manufacturing, automation, shutdown, andmergers.

2. Personnel decisions recruitment and selection, promotions, demotions, salaryincrement, , grievance settlement and many more.

3. Social decisions hours of work, welfare measures, questions affecting work rulesand conduct of individual workers safety, health, and sanitation and noise control.

Participation basically means sharing the decision-making power with the lower ranks of the

organization in an appropriate manner.

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.

As per ILO, Workers participation, may broadly be taken to cover all terms of association of

workers and their representatives with the decision-making process, ranging from exchangeof 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.

4.1.2 OBJECTIVES OF WPM

The objectives of workers participation in management are as follows:

To Increase productivity for the general benefit of the enterprise, the employees andthe community.

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To provide employees a better understanding of their role in the working of theindustry & of the production process.

To satisfy the workers urge for self-expression, thus leading to industrial peace,better relations and increased co-operation.

To raise level of motivation of workers by closer involvement. To provide opportunity for expression and to provide a sense of importance to

workers.

To develop harmonious relation in management and worker. To act on a device to counter-balance powers of managers. To act on a panacea for solving industrial relation problems.

To build the most dynamic human resource. To build the nation through entrepreneurship and economic development. To develop social education for effective solidarity among the working community

and for tapping latent human resources.

4.1.3 SCOPE OF WPM:

Workers participation is an element of industrial democracy. The scope of WPM is in social,

financial and personnel decision making. It may have a direct impact on organization.

1. Financial Decision-Making: It includes participation of employees on variousfinancial or economic aspects. For example: methods of manufacturing, mergers and

acquisition and price of product. Management invites ideas from employees on

various issues.

2. Personnel Decision-Making: Employees participation in personnel decision-makingmeans, their contribution in various management processes including recruitment and

selection, work distribution, promotions, demotions and transfers, grievance handling,

settlements, voluntary retirement schemes and so on.

3. Social Decision-Making: It refers to employee involvement in decision makingregarding hours of work, rules and regulations at workplace, welfare measures,

workers safety, employee welfare, health and sanitation

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Employee participation in decision-making process although is beneficial. Yet, there are

numerous limits on it to ensure that they do not take advantage of their liberty and right of

participation.

4.2 SIGNIFICANCE OF WPM

Workers participation in management has assumed great importance these days because of

the following advantages:

1. Reduced Industrial Unrest:Industrial conflict is a struggle between two organized groups, which are motivated

by the belief that their respective interests are endangered by the self-interested

behaviour of the other. Participation cuts at the very root of industrial conflict. It tries

to remove or at least minimize the diverse and conflicting interests between the

parties, by substituting it with cooperation, homogeneity and common interests. Both

sides are integrated and decision arrived at are mutual rather than individual.

2. Reduced misunderstanding:Participation helps dispelling employees misunderstanding about the outlook ofmanagement in industry.

3. Higher Productivity:The increased productivity is possible only when there exists fullest co-operation

between labour and management. It has been found that poor labour management

relations do not encourage the workers to contribute anything more than the minimum

desirable to retain their jobs. Thus participation of workers in management is essential

to increase industrial productivity.

4. Increased organization balance:If worker are invited to share in organizational problems, and to work towards

common solutions, a greater degree of organizational balance occurs because of

decreased misunderstanding of individual and group conflict. Participation leads to

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Forms

of

WPM

Works

Committee

Workers

Directors

Shop

Councils

Unit

Councils

JMC

increased understanding throughout the organization. People learn that others have

problems beside themselves.

5. Greater Commitment:An important prerequisite for forging greater individual commitment is the

individuals involvement and opportunity to express himself. Participation allows

individuals to express themselves at the work place rather than being absorbed into a

complex system of rules, procedures and systems. If an individual knows that he can

express his opinion and ideas, a personal sense of gratification and involvement takes

place within him. I am sure you will agree that participation increases the level of

commitment and the employees start relating to the organisation.

6. Industrial democracy:Involvement helps to bring workers in an era of democracy in industry. It is based on

the principle of recognition of the human factor. It tends to reduce class conflict

between capital and labour. It also serves as a support to political democracy.

7. Development of Individuals:Participation enhances individual creativity and response to job

challenges. Individuals are given an opportunity to direct their initiative and creativity

towards the objectives of the group. This facilitates individual growth.

4.3 FORMS OF WPM

The forms of workers participation in management vary from industry to industry and from

country to country. Forms of Workers participation in

management are:

1. Works Committee2. Joint Management Councils(JMC)3. Workers Directors4. Shop Councils5. Unit Councils

1. Workers Committee(WC):1947

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These works committees / joint committees are consultative bodies. 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.

WC can deal witho Conditions of work such as ventilation, lighting, temperature and

sanitation Amenities such as drinking water, canteen, dining, crches,

rest rooms, medical and health rooms services.

o Safety and accident prevention, occupational diseases and protectiveequipment.

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

2. Joint Management Councils(JMC):1958 In this form both the workers and management jointly decide and execute the

decisions. This form of participation is followed in U.S.A. and West Germany.

It is a sub-committee consisting of representatives of employers, workers andgovernment.

It should be set up for considering the details of workers participation inmanagement schemes.

It consists of equal number of representatives of management and employees, notexceeding 12 in all.

It must have 500 or more employees. It should have a fair record of industrial relations. It should have a strong and well

organized trade union.

Employees Representatives nominated by recognized trade union. Objectives of JMC establishment are:

o to increase the association of employers and employee therebypromoting cordial industrial relations;

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o To improve the operational efficiency of the workers;o To provide welfare facilities to themo To satisfy the psychological needs of workers.

3. 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 But this form of WPM was a failure because workers may not understand the work of

management or may leaked out the secrets.

4. Shop Council:1975 In every industrial unit employing 500 or more workmen, the employer shall

constitute a Shop Council for each department or shop or one Council for more than

one department or shop.

Each council shall consist of an equal number of representatives of employers andworkers.

The employers representatives shall be nominated by the management and mustconsist of persons from the unit concerned.

All the representatives of workmen shall be from amongst the workers actuallyengaged in the department of the shop concerned.

The total number of members may not generally exceed 12. The chairman of the shop council shall be a nominee of the management the worker

members of the council shall elect a Vice-Chairman from amongst themselves.

Unit Councils: 1977

Encouraged by the success of Joint Councils scheme, Unit Councils was set up on 5thJanuary, 1977 in commercial and service organisation in public sector.

In Unit Councils can be established in an organization employing 100 or moreworkers

It discusses day-to-day problems and find solutions. Every unit council shall consist of an equal number of representatives of the

management and workers.

Management representatives should consist from the unit concerned. The Council shall meet once in a month Objectives of Unit councils are

o To create conditions for achieving optimum efficiency, better customer serviceo To study absenteeism problem and recommend steps to reduce ito To eliminate pilferage and all forms of corruption and to institute a system of

rewards for this purpose and to recommend and safety, health and welfare

measures with two-way communication

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4.4 WORKERS'PARTICIPATION IN MANAGEMENT SCHEME OF 1975

Government of India on 30th October,1975 announced a scheme of workersparticipation in management which consisted of establishment of Joint Councils and

Shop council as part of its 20 point economic programs.

The scheme visualize for the founding of joint councils and shop councils inmanufacturing and mining industries employing 500 or more employees in public,

private and co-operative sectors.

The scheme consider participation of workers in the decision-making process in thematters relating to production, productivity ,absenteeism, safety measures, general

discipline, working conditions and welfare, and overall efficiency of the

shop/department.

All decisions of a Shop council as well as of the Joint council shall be on the structureof the harmony and not by process of voting.