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Workers%20 participation%20in%20management%202


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Workers%20 participation%20in%20management%202

  1. 1. Workers Participation in Management
  2. 2. Meaning 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. Redistribution of power between management and workers in the direction of industrial democracy
  3. 3. Worker’s participationarrangements resulting into the creation of various participative forums to associate workers with management v/s Participative managementManager’s specific style in which he interacts with his people, leadership pattern
  4. 4. Objectives of Workers participation inmanagement 1.Aware of Democratic right to 1. Economic influence the managerial objective decisions 2. Social  2. Raise worker’ level of motivation and commitment Objective (own decisions) 3.  3.Cross-fertilisation and speedy Psychological communication of ideas Objective 4. Avoid conflict and Foster better co-operation between labour and management.
  5. 5. Importance of Workers’ Participation inManagement1. Mutual Understanding2. Higher Productivity3. Industrial Harmony4. Industrial Democracy (right of self expression and opportunity to communicate views on policies, worker as responsible partner in decision making)5. Less Resistance to change6. Creativity and Innovation
  6. 6. Forms/level/degree of Participation Communication : to give and get info (sharing ) Consultation : exchange opinions and views before decision taken Co-determination : joint decision making Self management : enjoying complete authority right from decision making to execution
  7. 7. Workers Participation in Managementin IndiaIndirect Representative : introduced by govt through legal provisions or notifications.E.g Works Committee,Joint Management CouncilWorker’s director etc.Direct Participation : opportunity for each and every worker to participate in management through variety of mechanisms like suggestion schemes, small group activity ,quality circles etc.
  8. 8. Works Committee (1947) 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
  9. 9. List of items WC can deal withConditions of work such as ventilation, lighting, temperature and sanitationAmenities such as drinking water, canteen, dining ,crèches, rest rooms, medical and health rooms servicesSafety and accident prevention, occupational diseases and protective equipment. Adjustment of festivals and national holidays.Administration of welfare funds.
  10. 10. Educational and recreational such as libraries, reading rooms, cinema-shows, sports, games, community welfare and celebrations, games,Implementation and review of decisions arrived at meeting of works committees
  11. 11. Items excludedWages and allowancesBonusProfit sharingWork load fixationRetrenchment or layoffHousing servicesRetirement benefits, PF , gratuity etc.
  12. 12. Reasons for failure of WCExclusion of imp itemsLack of competence of representativesInter union rivalryRecommendations are just advisory in natureNo machinery to enforce the decision
  13. 13. Joint Management Council(1958)Consists of equal number of representatives of management and employees ,not exceeding 12 in all.Employees Representatives nominated by recognized trade union
  14. 14. AN UNDERTAKING MUST MEET THE FOLLOWING REQUIREMENTS FOR SETTING UP JMC’sIt must have 500 or more employees.It should have a fair record of industrial relations.It should have a strong and well organised trade union.Willingness of employers, workers and trade unions.
  15. 15. FEATURES OR FUNCTIONS of JMC1. Consultative Functions -council consulted by management on :Administration of standing ordersNew methods of productionRetrenchmentClosure, reduction in or cessation of operation
  16. 16. 2.Information –receiving and suggestion making functions:General economic situation.The state of market, production and sales programmes.Organisation and general running of the undertaking.The annual balance sheet and profit and loss account statement and connected documents with explanations.Methods of manufacture and worklong term plan for expansion etc.
  17. 17. 3.Administrative functions : Welfare measures Supervision of safety measures Operation of vocational training and apprenticeship schemes Preparation of schedules of working hours , breaks , holidays Payment of rewards for valuable suggestions
  18. 18. Reasons for unsatisfactory working orpartial successTrade union fear of loosing powerWeak representativesEmployers who already have WC and TU find it superflous
  19. 19. 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
  20. 20. Reasons for failureWd’s were ill equipped to understand the intricacies of board level mattersSecrets might be leaked outUnion opposition
  21. 21. Worker Participation scheme(1975)SHOP COUNCILSFor each dept or shop floor, establishment having more than 500 workmenEach council consists of equal number of representatives of employers and workers.
  22. 22. Functions :Assistance to management in achieving monthly/yearly production targetsImprovement of production-elimination of wastage and optimum utilization of resourcesStudy of absenteeism in shops/dept and steps to reduce thatAssistance in maintaining general disciplinePhysical conditions of working etc.Welfare and health measuresTwo way communication
  23. 23. JOINT COUNCILSOperate for industrial unit as a whole, more than 500 workmenThe chief executive of the unit is the chairman of the JCMeets at least once in quarterDecision on the basis of consensus
  24. 24. Functions: Optimum production Matters not solved in shop council or having bearing on another shop/dept Development of skills of workmen Awarding of rewards for valuable suggestions General health, safety and welfare measures for the unit or the plant
  25. 25. Direct participationTwo way communication: more imp in knowledge workersSuggestion schemes5S concept : Japan for TQM-house keeping practices Shitseke: discipline- maintain and review standards Seiton : orderliness –set in order Seiketsu: standardization of work practices Seiri: clearing (sorting) – keep only essential items rest discarded Seiso: sweeping/washing,cleanliness of workplace
  26. 26. PDCA concept- to improve organizational effectivenessPlan-set targetDo-work to meet targetCheck : target achieved or notAct –to remove difficulties or modify( to improve organizational effectiveness)
  27. 27.  Quality of work life (QWL): joint programmes of cooperation or ‘working together’ on the shop floor to improve quality of work life -refers to favourableness or unfavourableness of a job environment for employees in the organization E.G Adequate and fair compensation Safe and healthy working conditions Opportunity to use and develop human capacities Opportunity for career growth Social integration in work force etc.