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
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
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.
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
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
Workers Participation in Managementin IndiaIndirect Representative : introduced by govt through legal provisions or notifications.E.g Works Committee,Joint Management CouncilWorker’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.
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
List of items WC can deal withConditions of work such as ventilation, lighting, temperature and sanitationAmenities such as drinking water, canteen, dining ,crèches, rest rooms, medical and health rooms servicesSafety and accident prevention, occupational diseases and protective equipment. Adjustment of festivals and national holidays.Administration of welfare funds.
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
Items excludedWages and allowancesBonusProfit sharingWork load fixationRetrenchment or layoffHousing servicesRetirement benefits, PF , gratuity etc.
Reasons for failure of WCExclusion of imp itemsLack of competence of representativesInter union rivalryRecommendations are just advisory in natureNo machinery to enforce the decision
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
AN UNDERTAKING MUST MEET THE FOLLOWING REQUIREMENTS FOR SETTING UP JMC’sIt 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.
FEATURES OR FUNCTIONS of JMC1. Consultative Functions -council consulted by management on :Administration of standing ordersNew methods of productionRetrenchmentClosure, reduction in or cessation of operation
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 worklong term plan for expansion etc.
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
Reasons for unsatisfactory working orpartial successTrade union fear of loosing powerWeak representativesEmployers who already have WC and TU find it superflous
Workers’ Directors(1970)Workers’ representative on the board of directors of public sector enterprise and nationalized bankWorker director is elected by the most representative TU
Reasons for failureWd’s were ill equipped to understand the intricacies of board level mattersSecrets might be leaked outUnion opposition
Worker Participation scheme(1975)SHOP COUNCILSFor each dept or shop floor, establishment having more than 500 workmenEach council consists of equal number of representatives of employers and workers.
Functions :Assistance to management in achieving monthly/yearly production targetsImprovement of production-elimination of wastage and optimum utilization of resourcesStudy of absenteeism in shops/dept and steps to reduce thatAssistance in maintaining general disciplinePhysical conditions of working etc.Welfare and health measuresTwo way communication
JOINT COUNCILSOperate for industrial unit as a whole, more than 500 workmenThe chief executive of the unit is the chairman of the JCMeets at least once in quarterDecision on the basis of consensus
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
Direct participationTwo way communication: more imp in knowledge workersSuggestion schemes5S 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
PDCA concept- to improve organizational effectivenessPlan-set targetDo-work to meet targetCheck : target achieved or notAct –to remove difficulties or modify( to improve organizational effectiveness)
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.