WORKERS PARTICIPATION IN MANAGEMENT

1. WORKERS PARTICIPATION IN MANAGEMENT

2. WORKERS PARTICIPATION IN MANAGEMENT • Worker’s participation is a system where workers and management share important information with each other and participate in decision taking. It is viewed as industrial democracy based on the principles of equity, equality and voluntarism. It gives right to the workers representatives to criticize and offer constructive suggestions for better management.

3. Definition • “BETTER PARTICIPATION AND GREATER RESPONSIBILITY IN THE DECISION MAKING PROCESS ON THE PART OF GENERAL WORKERS WOULD PERHAPS TEND TO DEVELOP IN THEM ORGANIZATIONAL LOYALTY, CONFIDENCE, TRUST, FAVORABLE ATTITUDE TOWARDS SUPERVISORS, AND A SENSE OF INVOLVEMENT IN THE ORGANIZATION. SCHEMES OF WORKER’S PARTICIPATION IN MANAGEMENT AMONG OTHER MEASURES OR INDUSTRIAL REFORM, ARE EXPECTED TO DEMOCRATIZE THE INDUSTRIAL MILIEU, AND ENSURE EGALITARIANISM IN THE PROCESS.”

4. CONCEPT OF PARTICIPATION

5. NEED FOR PARTICIPATION • The participation of workers in management is necessary in the present industrial atmosphere. It creates satisfaction among workers, which in turn helps in increasing their morale. Without co-operation of workers industrial output cannot be increased.

6. Participation helps in the following ways:

7. Increased commitment • Growth of workers • Satisfy social and egoistic needs • Acceptance of change • Better industrial relationships • Better efficiency and job satisfaction • Better understanding • Solidarity among workers

8. FORMS OF PARTICIPATION Forms of Participation

9. FORMS OF LABOUR PARTICIPATION IN MANAGEMENT FORMS OF LABOUR PARTICIPATION IN MANAGEMENT

10.  DISCUSSIONS • In this system the manager or executive call a meeting of workers and shares the information with them, whenever he feels necessary. The workers give their opinions to the problem. A sort of group discussion is held and a consensus is involved.

11. GROUP DECISION MAKING • In this form of workers’ participation in management, the decision making power is delegated to the group. The manager acts as a leader, a chairman but final decision made by the group will be implemented. Authority & responsibility are delegated to the group for particular managerial area. This system is also called democratic or participative management.

12. LABOUR MANAGEMENT CO-OPERATION • In this form of workers’ participation in management, the decision making power is delegated to the group. The manager acts as a leader, a chairman but final decision made by the group will be implemented. Authority & responsibility are delegated to the group for particular managerial area. This system is also called democratic or participative management.

13. SUGGESTION SYSTEM • Under this system the employees are encouraged to make suggestions for improvement. These suggestions are put before a committee of management for scrutiny. The workers giving innovating suggestions are given monetary and other rewards. Management has the benefit of getting practical suggestions from the workers and making improvements in working.

14. EMPLOYEES REPRESNTATIVES ON BOARD OF DIRECTORS • The employees representative is made member of board of directors. The board is supreme policy making & decision making body in an organization. The workers representative presents the workers point of view before the board of directors. • The experience of taking workers on board of directors has not been encouraging.

15. Employee director is alone person in the board and his suggestions may be overruled by the majority. This type of representation can succeed only when management takes it in a right perspective.

16. Workers Participation In Management In India

17. WORKERS PARTICIPATION IN MANAGEMENT IN INDIA • The workers participation in management is not new even though it got encouragement only after independence . • In 1920 Mahatma Gandhi , observed “Employees should not regard themselves as sole owners of mills and factories of which they may be legal owners. They should regard themselves trustees. • In India workers participation has been introduced in three forms : • The Workers Committees • Joint Management Councils • Schemes of Workers Representative on the Board of Management in some public and private sector enterprises.

18. WORKS COMMITEES • The first labour management association started in 1947 with the passing of Industrial Disputes Act. • The Act provides that in the case of any industrial establishment in which 100 or more workers are employed on any day in the preceding twelve months, the appropriate government may by general or social order require • The employees to constitute in the prescribed manner a Works Committee in the establishment.

19. The committee was expected to discuss matters of common interest and to maintain cordial relations between workers and employees. • The response to works committees was encouraging in the beginning. • But , in spite of their large number the experience of these committees was not very fruitful.

20. Reasons for failure of works committees • The workers were not satisfied with the functions assigned to the committees. • The tendency of employers taking some matters to these committees just to by pass trade unions created a suspicion in the minds of workers leaders. • Inter unions rivalries were also responsible for the failure of these committees.

21. The casual approach of employees towards these committees made them ineffective . • The recommendations of these committees are advisory in nature. • The workers show less interest in the working of these committees.

22. Joint Management Councils • Joint Management council was a voluntary body. • Its introduction was left solely to the discretion of employers and employees. • These councils will consist of equal number of representation of workers and management will not exceed twelve.

23. The criterion for selecting industrial units are:- • The unit must employ at least 500 workers. • It should have an established and representative workers union. • The unit must be with a record of good industrial relations.

24. The councils functions were divided as:- • Information sharing. • Consultative. • Administrative. The council has the right to receive information , discuss and give suggestions on general economic situation, market production, general running of the unit etc.

25. The councils suffered the following lacunae: • The workers representatives were not satisfied with their role in councils. • Management are not prepared to supply sufficient information to councils . • The trade union leaders feel that council would weaken their hold over workers . • The absence of representative unions made it difficult for the councils to work smoothly.

26. Shop Councils and Joint Councils • A new scheme for workers participation in management was adopted in October 1975. • The scheme was voluntary in nature. • It covered all manufacturing and mining industries employing 500 or more persons. • The scheme provided for setting up of shops councils at the plant level.

27. Features of Shop Councils are:- • There will be a shop for each department or one council for more departments considering the number of workers employed there. • The representatives of employees will be nominated by the management and must be from the unit concerned. • The number of members in the council may be decided by management in consultation with recognized unions.

28. All decisions of the council must be based on consensus. • The term of shop council will be two years. • The chairman of the council will be the nominee of management and vice-chairman shall be elected by working members amongst themselves.

29. Functions of Shop Councils are:- • Assist management in achieving monthly/yearly targets. • Elimination of wastage and optimum utilization of machine capacity and manpower. • To study the causes of absenteeism in the department and suggest measures to eliminate it. • Safety measures.

30. Assistance in maintaining general discipline in the department. • Physical conditions of work such as lighting, ventilation ,noise, dust, etc. Reduction of fatigue. • Welfare measures to be adopted for sufficient running of department/shop. • Ensure proper communication between management and workers reporting the

31. Joint councils • There was to be a joint council for every unit employing 500 or more workers.

32. FEATURES: • The members of the council must be actually engaged in the unit. • The term of the council will be two years. • The chief executive of the unit will be the chairman of and vice-chairman will be nominated by worker members. • It shall meet at least once in a quarter. • The decisions of the council will be based on consensus and not on voting. • The decisions will be binding on both parties and will be implemented within one month.

33. FUNCTIONS • Optimum production , efficiency and function of productivity norms of man and machine for the unit as a whole. • Functions of a shop council which have a bearing on another shop or the unit as a whole. • Matters remaining unresolved by shop council. • The development of skill of workmen and adequate facilities for training. • Preparation of schedules of working hours and of holidays. • Awarding of rewards for valuables and creative suggestions received from workers. • Optimum use of raw materials and quality of finished products.

34. Workers director • Administrative reforms commission , in its report on public sector undertaking , recommended the appointment of workers representatives on boards of management . • Under this scheme one director each was appointed to boards of nationalised banks.

35. Reasons for the failure • The management have been of the view that workers are not competent to take decisions. • It was difficult for workers representatives to play the role of management and union leaders. • The scheme of workers participation was inspired by the government without any initiative from management.