The document discusses workers' participation in management in India. It provides definitions of workers' participation and its objectives of increasing productivity and motivation. It analyzes reasons for the failure of these programs in India, such as a lack of strong unions, mutual understanding, and follow-up measures. Suggestions are given to improve effectiveness, like education and open communication. An example from Maruti is given that treated workers as assets through participation.

1. Presentation on topic : What do
you understand by workers'
participation in management ?
Why have they failed in India?
Suggest measures to increase
their effectiveness.
Presented by : Sangeeta Saini
M.Com (final)
671

2. CONTENTS
Introduction.
Meaning of workers' participation in
management.
Objectives.
Reasons for failure of workers' participation
in management in India.
Suggestions for effective worker
participation.
Example of worker participation.
Conclusion.

3. Introduction
 The word “participation” means sharing the
decision making power with the lower ranks of
the organisation in an appropriate manner.
Participation has a unique motivational power.
It promotes harmony and peace between
workers and management. When workers
participate in organisation they are able to see
the big picture clearly i.e.; how their actions
would contribute to overall growth of the
company. They can offer feedback
immediately based on their experiences and
improve the quality of decisions significantly.

4. Workers participation is a
system where workers and
management share
important information with
each other and participate
in decision making. It is a
process by which authority
and responsibility of
managing industry are
shared with workers.

5. Objectives of workers participation
Increasing productivity.
Raising the level of motivation.
Improving quality of work life.
Securing mutual co-operation.
Avoiding conflicts

6. Reasons for failure of
workers participation in
management in India
• If trade unions are strong and well organised , this scheme can be enforced
effectively.
• In our country trade union suffer from several ills like dirty politics, disunity
and narrow vision. As a result, they fail to make proper use of their rights.
Lack of strong and
effective trade union
• Success of workers participation management depend largely on the
coordination between the parties concerned.
• In India, dealing of both employer class and worker class have not cooperative
towards each other. That is the reason why despite its enforcement , the
scheme could not be success.
Lack of mutual
understanding
between two parties
• Interest of the workers are protected by their representatives in the trade
unions. Stronger the trade union , more effective will be the scheme.
• In our country , in one industrial unit there are more than one trade union. It
implies disunity among the workers . Large number of trade unions create
difficulties in the implementation of the participation scheme.
More than one
trade union

7. • Even till this day , neither the employer nor the
worker class has understood the scheme
properly . Labour remains under the fear that
with the application of the scheme their rights
will be curtailed. Thus lack of understanding of
the scheme is another factor that restricts its
success.
Lack of
understanding
the scheme
• There is a lack of follow up measures on the part
of the government for the implementation of the
various schemes announced by it.
• For example :- The works committees set up
under the provisions of
could not be effective for want to
follow up measures
Lack of follow
up

8. Suggestions for effective worker participation
 Education and training of workers :- Workers must be
given as much education and training as possible so that
they could understand the scheme in its true perspective
and be in a position to offer solid and workable
suggestions.
 Effective system of communication :-there must be
effective system of communication . Both labours'
representatives and managements' representatives must
be able to talk in each others language. So that they are in
position to exchange their ideas. Moreover both the
parties should communicate freely.

9. Continue…….
:- There must be sufficient
time to participate before action is required ; because
participation in emergent situations is hardly advisable.
:- Strong trade union are
necessary pre – requisite of the success of participation
scheme. If the trade union are strong they will accept and
adopt the scheme of collective bargaining.
:-
Participation should not adversely affect the status or
authority of the participants . Managers will not participate ,if
their authority is threatened. Workers will hesitate in
participating if they think that their status is being adversely
affected.

10. Example
Maruti : Right from inception in 1981, the top management at
maruti realised importance of treating workers as human
assets . To promote a healthy work climate , maruti had
undertaken several pioneering initiatives:-
 Minimise distinction between employees .
 Employee participation in equity etc.
 Free and fair exchange of facts, information, opinion at various
levels.
 Hold regular meetings with unions to clarify matters.
 Encourage the teamwork.
 Encourage employees to advance suggestions and reward the
practicable suggestion immediately.

11. Conclusion
.
To conclude, it can be said that for establishing
industrial peace , increasing production and
productivity and achieving industrial growth , it
is essential to introduce workers' participation
scheme in management. The government should
also adopt a positive attitude and amend labour
laws in a manner that provisions of workers
participation in management could be
implemented successfully.