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Participative management


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  • 2. 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
  • 3. 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
  • 4. Factors Influencing Participation  Subject matter of participation  Level of participation  Extent of authority  Personal characteristics
  • 5. Levels of Participation  Informative  Consultative  Associative  Administrative  Decisive
  • 6. 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
  • 7. 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
  • 8. 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.
  • 9. 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
  • 10. 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.
  • 11. 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
  • 12. 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
  • 14. 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.
  • 15. 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
  • 16. 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
  • 17. Approaches to Industrial Relations  Psychological approach  Sociological approach  VV Giri Approach  Gandhian Approach  Unitary Approach  Pluralistic Approach  Marxist Approach  HRD Approach
  • 18. Parties to Industrial Relations  Employees and their associations  Employers and their associations  The government and its various agencies
  • 20. 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”
  • 21. Features of Trade Union  Association  Voluntary  Permanent  Collective action  Common interest  Changing character  Aim
  • 22. Trade Union Phase in India  Pre-1918 phase  1918-1924 phase  1925-1934 phase  1935-1938 phase  1939-1946 phase  1947 and since
  • 23. Trends in the Trade Union Movement in India  Attitudinal change  Depoliticisation of union  Multiplicity of Unions  Outside Leadership  Professionalization of Trade union movement