Presentation on Worker participation in Management

1. Worker
Participation in
Management
Presented By: Minaxi Kataria,
Research Scholar, Gurukula Kangri University Haridwar

2. Introduction
• Workers’ participation in management is an essential ingredient of
Industrial democracy. The concept of workers’ participation in
management is based on Human Relations approach to Management
which brought about a new set of values to labour and management.
• 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 ‘labour participation’ or
‘employee participation’ in management.
• The International Labour Organization has been encouraging member
nations to promote the scheme of Workers’ Participation in
Management.
• 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.

3. Definition
• 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.
• According to Walpole, Participation in Management gives the
worker a sense of importance, pride and accomplishment; it gives
him the freedom of opportunity for self-expression; a feeling of
belongingness with the place of work and a sense of
workmanship and creativity.

4. Objectives of Workers Participation in Management
• To make workers conscious of their democratic rights to influence
the management decisions.
• To raise workers’ level of motivation and commitment by
providing them with a sense of importance and a feeling that
decision are their own.
• To provide a forum for cross-fertilisation and speedy
communication ideas.
• To avoid conflict and foster better cooperation between labour and
management.

5. Worker Participation in Management in
India
• Article 43A of the Constitution of India deals with 'Participation
of workers in management of industries' and falls under Part IV
- Directive Principles of State Policy.
• The State shall takes steps, by suitable legislation, or in any
other way, to secure the participation of workers in management
of undertaking ,establishments or other organisations engaged in
any industry.
• Several experiments have been made from time to time to give
effect to this constitutional imperative. A description of these
experiments are as follows:

6. Works Committee (1947)
• The first experiment began in 1947 when the Industrial Dispute Act was passed.
The Act provides that in case of an industrial establishment in which 100 or
more workers are employed on any day in the preceding 12 months, the
appropriate Govt. may by general or special order require the employer to
constitute in the prescribed manner a Works committee consisting of
representatives of employer and workmen engaged in the establishment.
• The committee constituted by the Indian Labour Conference in 1959 has drawn
the following illustrative list of items in Works Committee
i) Conditions of work such as ventilation, lighting, temperature and sanitation
including washrooms and urinals.
ii) Amenities such as drinking water, canteens, dining rooms, medical and health
services.
iii) Safety and accident prevention, occupational diseases and protective
equipment.
iv) Adjustment of festival and national holidays
v) Education and recreational activities.
vi) Administration of welfare and fine funds
vii) Promotion of thrift and saving; and
viii) Implementation and review of decisions arrived at in the meeting of work
committees.

7. Joint Management Council (1958)
• The second experiment in worker participation began in 1958 with the
establishment of joint management councils. It was decided that joint
management councils should consist of an equal number of
representatives of the management and employees, not exceeding 12.
• The employees representatives should be nominated by the recognized
trade unions. Further, the councils should set up at the plant level on a
voluntary basis in selected industrial units.
• The criteria laid down for the selection of industrial units were:
i) The undertaking should employ at least 500 workers
ii) It should have a well-established, strong and representative workers
union affiliated to some central organisation.
iii) The undertaking must be one with a good record of industrial
relations.

8. Functions of a Joint Management Council
• The council is to be consulted by the management on
administration of standing orders, introduction of new methods of
production and closure, reduction in or cessation of production.
• The council has the right to receive information, discuss and give
suggestions on general economic situation, state of the market,
production and sales programme, organisation and general running
of the concern, methods of manufacture and work, annual balance
sheet and profit and loss statement and long term plans for
expansion, redeployment etc.
• The council is to be entrusted with responsibility in respect of
administration of welfare measure, supervision of safety measures,
vocational training, apprenticeship schemes, schedules of working
hours, break and holidays and rewards for suggestions.

9. Worker Participation Scheme 1975
• The Central Govt. adopted through a resolution a new scheme of
worker participation in management. The scheme covered all
manufacturing and mining industries (whether in public, private
or co-operative sectors, including departmentally-run enterprise)
employing 500 or more persons. The scheme provided for the
setting up of shop councils at the shop and floor level and joint
councils at the plant level.

10. Shop Councils
• The main features of the shop councils were as follows:
i) Whether a joint management council already exists or not there shall
be a shop council for each department or shop, or one council for
more than one department or shop, considering the number of
workmen employed in different departments or shops.
ii) each council shall consist of an equal number of representatives of
employers and workers;
iii) the employers’ representatives shall be nominated by the
management and must consist of persons from the unit concerned.
iv) All the representatives of workmen shall be from among the worker
actually engaged in the department or the shop concerned.
v) The number of members of each council may be determined by the
employer in consultation with the recognized union or registered
unions of workers in the manner best suited to local conditions
obtaining in the unit; the total number of members may not generally
exceed 12.

11. Functions of the Shop Councils
• Assistance to management in achieving monthly/yearly production
targets.
• Improvement of production, productivity and efficiency including
elimination of wastage and optimum utilization of machine capacity
and manpower.
• Identification of areas of low productivity.
• Study of absenteeism in the shops/departments and recommending
steps to reduce them.
• Safety measures
• Assistance in maintaining general discipline in the shop/
department.
• Physical conditions of working
• Welfare and health measures.etc

12. Joint Council
• In every industrial unit employing 500 or more workers, there was to
be a joint council for the whole unit.
• The main features of the joint council are as follows:
i) Only such persons who are actually engaged in the unit shall be
member of the joint council
ii) The council shall function for a period of two years
iii) The chief executive of the unit shall be the chairman of the joint
council. There shall be a vice- chairman who will be nominated by
worker-member of the council
iv) The joint council shall appoint one of the members of the council as
its Secretary.
v) The joint council shall meet at least once in a quarter.
vi) Every decision of the joint council shall be on the basis of consensus
and not by a process of voting and shall be binding on employers and
workmen and shall be implemented within one month.

13. Functions of Joint Council
• Optimum production efficiency and fixation of production
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 emanating from shop councils which remain unresolved
• Work planning and achieving production targets, mores
specifically, tasks assigned to a shop council at the shop/
department level but relevant to the unit as a whole.
• The development of skill of workers and adequate facilities for
training.
• The preparation of schedules of working hours and of hoildays