Worker s participation in managementPresentation Transcript
Worker’s Participation in Management firstname.lastname@example.org
• John Leitch has defined Industrial Democracy as “the organization of any factory or other business institution into a little democratic state with representative government which shall have both the legislative and executive phases”.• In the same manner as political democracy has converted subjects into citizens, with right of self-determination and self- government, industrial democracy converts the workers from the mere subjects obeying the orders of the employers, into citizens of the industrial world, with a right to self-determination and self- government, that is, representative participation in making rules and enforcing them. This is known as Workers’ Participation in Management.• Workers’ participation in management means giving scope for workersto influence the managerial decision-making process at different levels by various forms in the organization. The principal forms of workers’ participation are information sharing, joint consultation, suggestion schemes, etc.
• There can’t be an industrial peace so long as the workers remain alienated from the organization , so long as the workers don’t have a sense of commitment and attachment with in the organization.• Growth of professionalism industrial democracy and development of the principles of social justice has leads to the growth of the concept of participative management.• The concept of participation means sharing of decision making power by rank and file of an industrial organization through proper representatives at all levels of management in the entire range of managerial action.• Participation means the mental and emotional involvement of a person on a group of situation which encourage him to contribute for achieving objectives of the organization.
Features of worker’s participation in management• The main objective of worker’s participation in management is to achieve organizational effectiveness and the satisfaction to the employees.• It increase the scope of employee’s share of influence in the decision making process.• The is a effective distinction between the worker’s participation and collective bargaining in the sense that while the worker’s participation is based on mutual trust, mutual problem solving and hearing and sharing where as collective bargaining is based on power-play negotiations and tactics.• It leads to promote mutual understanding between the management and workers leading to industrial harmony.• It leads to creation of sense of commitment to the decisions among workers as they happened to be a party to the process of decision making
Scope of Workers’ Participation in Management Information Sharing. Share the information! That says it all. According to this 1.view, participation takes place when the management solicits the opinion ofworkers before taking a decision. The management ultimately takes the decision.Workers are given a say or an opportunity to influence decisions, they play apassive role in the process of decision-making, but have no final say in thematter. Sharing Decision-Making. This school holds that participation of an individual 2.in something occurs when he actively takes part. The focus here is that theremust exist taking part actively. Workers sit with the representatives ofmanagement to take important decisions particularly on matters affecting theworkers. Workers may be members of Works Committees, Joint ManagementCouncil, etc. along with the representatives of management. The decisions aretaken through mutual discussions between the representatives of the workersand those of the management. Self-control. The essential feature of self-control (or management) is that 3.management and workers are not visualised as two distinct groups but as activemembers with equal voting rights. Participation in Yugoslavia is an example ofself-control.
Significance of Workers Participation Higher Productivity: The increased productivity is possible only when there 1.exists fullest co-operation between labour and management. It has been found thatpoor labour management relations do not encourage the workers to contributeanything more than the minimum desirable to retain their jobs. Thus participation ofworkers in management is essential to increase industrial productivity. Greater Commitment: An important prerequisite for forging greater individual 2.commitment is the individual’s involvement and opportunity to express himself.Participation allows individuals to express themselves at the work place rather thanbeing absorbed into a complex system of rules, procedures and systems. If anindividual knows that he can express his opinion and ideas, a personal sense ofgratification and involvement takes place within him. I am sure you will agree thatparticipation increases the level of commitment and the employees start relating tothe organization. Reduced Industrial Unrest. Industrial conflict is a struggle between two 3.organized groups, which are motivated by the belief that their respective interestsare endangered by the self-interested behavior of the other. Participation cuts atthe very root of industrial conflict. It tries to remove or at least minimize the diverseand conflicting interests between the parties, by substituting it with cooperation,homogeneity and common interests. Both sides are integrated and decision arrivedat are mutual rather than individual
Significance of Workers Participation (contd..) Improved Decisions. I am sure that you will agree that communication is 4.never a one way process, Also note that it is seldom, if ever, possible formanagers to have knowledge of all alternatives and all consequences related tothe decisions which they must make. Because of the existence of barriers to theupward flow of information in most enterprises, much valuable informationpossessed by subordinates never reaches their managers. Participation tends tobreak down the barriers, and makes the information available to managers. Tothe extent such information alters the decisions, the quality of decisions isimproved. Human Resource Development. Participation provides education to workers 5.in the management of industry. It fosters initiative and creativity among them. Itdevelops a sense of responsibility. Informal leaders get an opportunity toreinforce their position and status by playing an active role in decision-makingand by inducing the members of the group to abide by them. Reduced Resistance to Change. Last but not the least, it should be noted 6.that changes are arbitrarily introduced from above without explanation.Subordinates tend to feel insecure and take counter measures aimed atsabotage of changes. But when they have participated in the decision makingprocess, they have had an opportunity to be heard. They know what to expectand why. Their resistance to change is reduced
Pre–requisites for the success of Workers’ Participation in Management The overall climate in the organisation should be favourable to workers’ I. participation. There should be an attitude of mutual co-operation, confidence, and respect for each other. Management, in particular, should be genuinely receptive to the labour’s ideas so that the latter can perceive that their ideas are useful. There must be sufficient time to participate before action is required; because II. participation in emergent situations is hardly advisable. The subject of participation must be relevant to the enterprise; it must concern III. something in which both the parties are interested, otherwise the parties are likely to become indifferent to the process of participation. The workers’ representatives should have the ability such as intelligence and IV. knowledge, to participate. It is not appropriate to ask workers to participate in technical aspects of the machinery; but they can participate successfully in problems relating to their work. The contributions made by the workers should be worthwhile and should benefit the workers in the long run. It should be in the interest of the management as well! Now maintaining that balance is not that easy but that is what experience is all about!!
Pre–requisites for the success of Workers’ Participation in Management There must be effective system of communication. Both labour’s representatives andmanagement’s representatives must be able to understand each other and expressthemselves without any inhibitions. The whole idea after all is to be able to speak outone’s mind and listen to the counterpart’s point of view! Participation should not adversely affect the status or authority of the VI.participants. Managers will not participate, if their authority is threatened. Workers willhesitate in participating if they think that their status is being adversely affected. In factfor worker’s participation to be effective, both the management and the labour shouldget rid of their ego problems and share their ideas. I am sure that you will agree that norelationship can continue for long if there are ego clashes. Both the parties should makeefforts to come closer rather than moving away. The financial cost of participation should always be lesser than the benefits-both VII.economic and non-economic-of participation. We all can understand the economicaspect but as far as the non-economic part is concerned, it will depend on theorganizations. What I can tell you at this point of time is that the pains and pleasuresshould be matched! The pleasures should be much more as compared to the pains. VIII. Participation should be within the framework of overall policy of the enterprise inquestion .I am sure you will agree that every decision has to be in line with the Visionand Mission statements of the organization.
Objectives of worker’s participation• Worker’s participation is an instrument for improving efficiency of enterprises and establishing harmonious industrial relations.• It is a device for developing social education for effective solidarity among the working community.• The expectation of workers from participation is to achieve security for employment, better wages and bonus etc.• The employee interest in participation is to maximize profit• So broadly the objectives may be economic, social or psychological.
Growth & Development of workers participation in management in India• The concept of workers participation in India dates back to 1920 when Mahatma Gandhi had suggested that both the workers and management should share in the prosperity of the business.• Employer should not regards sole owner of mills and factory of which they may trustees.• There should be a perfect relationship of friendship and cooperation among them.• Capital and labour should be supplementary to each other.• TISCO,Indian Aluminum work, Belur.• The Delhi cloth and general mill ltd also introduced workers participation in management 1938 .• The Royal commissioner of labour (1929-31) recommended the formation of works committee which plays an useful part in Indian industrial system.
• BOMBAY Industrial Relation act 1946 (apply to textile industries in Maharashtra and Gujarat), and ID Act 1947.• Royal commission also reported in general for work committee.• The royal commission for labour also suggested that for cultivation of industrial harmony and avoiding misunderstanding and setting dispute.• In the first five year plan it was suggested for constitution of joint committee for consultation at all level of management .• ID ACT 1947, joint management council 1957, the industrial policy resolution 1948.• The 2nd 5yr plan explained the philosophy of worker-management relationship outlined that A socialist society is built up not solely on monetary incentives but on idea of service to the society. The creation of industrial democracy is therefore a prerequisite in the establishment of a socialist society.• For the successful implementation of the plan, increased association of labour with management is necessary.• Govt. of India set up a specific study group to see the progress and problem in working of worker’s participation in May 1957. the recommendations of the study group were accepted by 15th Indian labour conference in July 1957.
Present Status• The concept of workers participation was implemented by 1400 units by dec1975 and it covered 25million workers across all industries and sectors.• Later on a new schemes of worker’s participation in management in commercial and service organization in the public sector was announced.• In 1977 high power expert committee was set up by government to suggest worker’s participation in the share capital and management of companies.• Then under Janata Govt a committee was set up in sept 1977 under the chairmanship of Ravindra Verma, then union minister of labour• The committee was submitted its report in 1979