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Chapter 24


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Chapter 24

  2. 2. ANNOTATED OUTLINE 24-2 INTRODUCTION Participation has a unique motivational power and a great psychological value. It promotes harmony and peace between workers and management. Workers’ participation in management aims at improving the quality of working life and thereby secure cooperation and commitment from workers. Participation And Empowerment
  3. 3. 24-3 <ul><li>An instrument for establishing harmonious industrial relations </li></ul><ul><li>A device for promoting solidarity among workers </li></ul><ul><li>A way of tapping human talent by encouraging workers to come out with ideas and suggestions </li></ul><ul><li>A means of motivating workers and obtain the best from them </li></ul><ul><li>A humanitarian act, elevating the status of worker in the society </li></ul><ul><li>An ideological weapon to develop self-management </li></ul>Workers’ Participation in Management: Different Views Participation And Empowerment
  4. 4. 24-4 <ul><li>WPM is generally interpreted in four different ways </li></ul><ul><li>Sharing information with workers </li></ul><ul><li>Joint consultation prior to decision making (workers consulted, taken into confidence, suggestions invited to solve an issue) </li></ul><ul><li>Sharing information, offering participation and involving workers in the joint decision making process while solving work related problems. </li></ul><ul><li>Involving workers in all strategic, policy and operational issue, treating them as equal partners with equal voting rights and encouraging workers to self-manage and self-control activities. </li></ul>Forms of Participation Participation And Empowerment
  5. 5. 24-5 Government Policy Towards Workers’ Participation <ul><li>The participation of workers in management is not a novel idea, imported from outside. It has native flavour and is being favoured by corporate houses in India even before Independence. </li></ul><ul><li>Mill committees, of course, were there to take care of workers' grievances. </li></ul><ul><li>The Royal Commission on Labour recommended the establishment of a joint consultative machinery for settling disputes between labour and management. </li></ul><ul><li>The Industrial Disputes Act, 1947 created a formal mechanism through the Works Committees to resolve differences between labour and management over matters relating to conditions of work. </li></ul><ul><li>The Second Five Year Plan advocated the setting up of Joint Management Councils </li></ul>Participation And Empowerment
  6. 6. 24-6 Joint Management Councils 1958 Objectives Promote cordial industrial relations Improve operational efficiency of workers Provide welfare facilities to workers Educate and prepare workers for meaningful participation in organisational matters Criteria for setting up JMCs The unit must have 500 or more workers It should have a fair record of industrial relations It should have a well organised trade union, affiliated to one of the central federations. Both management and workers should agree to the setting up of such a unit Evaluation Failed to make much headway due to unenthusiastic response from unions and workers Management, on the other hand, was mentally reluctant to share ideas and power with workers in a meaningful manner. Participation And Empowerment
  7. 7. 24-7 Participation And Empowerment <ul><li>The idea of workers assuming the role of a board member came into being in 1970s. The scheme required verification of trade union membership, identification of the representative union and the selection of a worker director who is chosen out of a panel of three names furnished to the government by the representative union within a prescribed time period. </li></ul><ul><li>Shop and joint councils gained popularity from 1975 on wards. The joint council would be constituted, comprising of representatives from both management and labour, for a period of two years. </li></ul><ul><li>From 1990 on wards, a three-tier participatory scheme as proposed: giving participation to workers at three levels: shop floor, enterprise and board level. </li></ul>Government Policy Towards Workers’ Participation
  8. 8. 24-8 Participation And Empowerment <ul><li>Evaluation </li></ul><ul><li>The various schemes of participation have failed to deliver satisfactory results due to reasons such as </li></ul><ul><li>Employer's reluctance </li></ul><ul><li>Workers' apathy </li></ul><ul><li>Illiteracy( workers not fully prepared to face the challenge) </li></ul><ul><li>Lack of knowledge </li></ul><ul><li>Inter union and intra union rivalry </li></ul><ul><li>Lack of support from government </li></ul>Government Policy Towards Workers’ Participation
  9. 9. 24-9 Effective Workers’ Participation In Management <ul><li>In order to make the scheme more effective, certain conditions should be satisfied </li></ul><ul><li>Managerial attitudes </li></ul><ul><li>Union cooperation </li></ul><ul><li>Meaningful participation </li></ul><ul><li>Workers' attitudes </li></ul>Participation And Empowerment The scheme, however, proved to be a big hit in some well-known public and private sector organisations (such as TISCO, BHEL, MARUTI) where both management and workers were willing to invest their time and energies in ensuring the success of the scheme.
  10. 10. 24-10 Participation And Empowerment WPM: MARUTI WAY <ul><li>Minimise distinctions between employees </li></ul><ul><li>Promote teamwork and employee involvement at all levels </li></ul><ul><li>Meet unions regularly to clarify things </li></ul><ul><li>Exchange facts openly </li></ul><ul><li>Encourage employees to come out with suggestions, ideas </li></ul><ul><li>Allow employee participation in equity </li></ul>
  11. 11. 24-11 Empowerment Participation And Empowerment <ul><li>Giving employees the authority to make decisions and providing them with financial resources to implement these decisions is called 'empowerment'. There are four essential conditions necessary for empowerment to gain credibility and acceptance at various levels in an organisation: </li></ul><ul><li>Participation </li></ul><ul><li>Innovation </li></ul><ul><li>Information </li></ul><ul><li>Accountability </li></ul>
  12. 12. 24-12 Alternative Approaches To Participation A. Quality Circles Participation And Empowerment <ul><li>A quality circle is a small group of employees who meet periodically to identify, analyse and solve quality and other work related problems in their area. The main features of a quality circle may be stated thus: </li></ul><ul><li>Voluntary group </li></ul><ul><li>Manageable size </li></ul><ul><li>Regular interaction </li></ul><ul><li>Own agenda </li></ul><ul><li>Quality focus </li></ul>
  13. 13. Objectives 24-13 Participation And Empowerment Objectives of quality circles <ul><li>Improve quality of service/product </li></ul><ul><li>Satisfy psychological needs of employees </li></ul><ul><li>Utilise human talents and skills fully through self expression, participation </li></ul><ul><li>Improve quality of working life </li></ul><ul><li>Pave the way for cordial industrial relations </li></ul>
  14. 14. 24-14 Participation And Empowerment <ul><li>Struture of a quality circle </li></ul><ul><ul><li>Quality circle members </li></ul></ul><ul><ul><li>Quality circle leader </li></ul></ul><ul><ul><li>Facilitator </li></ul></ul><ul><ul><li>Steering committee </li></ul></ul><ul><li>How quality circles work? </li></ul><ul><ul><li>Identify problems </li></ul></ul><ul><ul><li>Analyse problems </li></ul></ul><ul><ul><li>Recommend solutions </li></ul></ul>Alternative Approaches To Participation
  15. 15. 24-15 Why Quality Circles Fail? Participation And Empowerment <ul><li>Inadequate preparation, and consequently, poor presentation from members </li></ul><ul><li>Poor training given to workers </li></ul><ul><li>Interference from management </li></ul><ul><li>Picking up favourites to fulfil the agenda fixed by management </li></ul><ul><li>Trying to use quality circles to meet short term, quantifiable goals </li></ul><ul><li>Quality circle leaders not fully qualified in terms of experience competence </li></ul><ul><li>Inadequate facilities extended by management </li></ul>
  16. 16. 24-16 How To Make Quality Circles Effective? Participation And Empowerment Suggestions for effective use of quality circles <ul><li>Obtain managerial support and involvement for the programme. </li></ul><ul><li>Identify goals for the programme and evaluation criteria. </li></ul><ul><li>Do not expect the QC programme to solve all problems in the organisation. </li></ul><ul><li>Make sure managers realise that any changes will take time. </li></ul><ul><li>Inform all employees about the philosophy and goals of the programme. </li></ul><ul><li>Keep the programme voluntary. </li></ul><ul><li>Select group members based on their technical expertise and their support of the programme's goals. </li></ul><ul><li>Prepare individuals for their new roles in a participative culture. </li></ul><ul><li>Provide training for managers as coordinators. </li></ul><ul><li>Offer training for support staff who will serve as facilitators. </li></ul><ul><li>Start with a pilot test of the programme in a supportive department. </li></ul><ul><li>Implement the suggestions made by employees. </li></ul><ul><li>Give recognition for employees' efforts. </li></ul>
  17. 17. 24-17 B. Quality Of Working Life Participation And Empowerment It is the degree to which members of a work organisation are able to satisfy important personal needs through their experiences in the organisation. Alternative Approaches To Participation
  18. 18. 24-18 Participation And Empowerment Major issues in quality of working life <ul><li>Pay </li></ul><ul><li>Benefits </li></ul><ul><li>Job security </li></ul><ul><li>Alternative work schedules </li></ul><ul><ul><li>Flexitime </li></ul></ul><ul><ul><li>Staggered hours </li></ul></ul><ul><ul><li>Compressed work week </li></ul></ul><ul><ul><li>Job enrichment </li></ul></ul><ul><ul><li>Autonomous work groups </li></ul></ul><ul><li>Occupational stress </li></ul><ul><li>Workers' participation </li></ul><ul><li>Social integration </li></ul><ul><li>Work and total life space. </li></ul>
  19. 19. 24-19 How to measure quality of working life? Participation And Empowerment <ul><li>Turnover data </li></ul><ul><li>Morale surveys </li></ul><ul><li>Number of grievances handled </li></ul><ul><li>Absenteeism data </li></ul><ul><li>Performance criteria </li></ul><ul><li>Personal interviews carried out from time to time </li></ul>Obstacles to quality of working life programme <ul><li>Managerial attitudes </li></ul><ul><li>Union's attitudes </li></ul><ul><li>Cost considerations </li></ul>
  20. 20. 24-20 Improving the quality of working life Participation And Empowerment <ul><li>Better employment conditions governing employee safety, health and physical environment </li></ul><ul><li>Equitable rewards in terms of pay, benefits, incentives and services </li></ul><ul><li>Job security </li></ul><ul><li>Enhancing the self-esteem of people </li></ul><ul><li>Participative climate and team spirit </li></ul><ul><li>Training to employees, managers and supervisors </li></ul><ul><li>Autonomy to draw resources and deliver results </li></ul><ul><li>Recognition for work done </li></ul><ul><li>Job design and job enrichment </li></ul><ul><li>Open and transparent management style </li></ul><ul><li>Atmosphere of trust and open communication. </li></ul>