A COMPREHENSIVE STUDY

ON WORKERS PARTICIPATION IN MANAGEMENT

AT

SHAKTINAGAR(SSTPP)

( A UNIT OF GOVT. OF INDIA)

Submitted in partial fulfillment of the requirement of the award of the two year post graduate degree in

Personnel management & industrial relation 2010 -2012

Submitted To:NAVNEETA SHOME HR Department NTPC Ltd. Shaktinagar, Sonebhadra

Presented By:Bipin Kumar MPMIR (2010-12) B. H. U Varanasi-221005

Acknowledgement

In an organization, be one man working in isolation can achieve it an

industry, a school or society, no outcomes. Its always a group working and support that we received from this organization.

and achieving the outcome in totality. It is the outcome of all the guidance

We would like to special thank Mr. S.S. Das,AGM (Training) for having arrangement of our training in this organization.

In my prior list, I would like to express my profound sense of gratitude to guidance & supervision the present study has been carried out.

the authorities of NTPC LIMITED& Mrs. Navneeta Shome under whose

I am very grateful to Mrs. Navneeta Shome who always spread their valuable time to steer me through this project work with smiling face & I am also thankful to all the staff members of HR department.

The list also contains my colleagues and friends for helping me in

preparation of rough sketches for the project and inspired me throughout. Lastly I owe a considerable debt to all the members of NTPC PARIWAR specially the HR Employee Relation Department who spared their precious time by answering the Questions and Queries and thus helping me in my cause.

Bipin Kumar MPMIR(BHU)

Certificate

DATE : 15 /05/2011 PLACE : Singrauli

This is to certify that Mr.Bipin Kumar , student of MPMIR, Department of PSychology, BHU, Varanasi has done his eight week summer training project from 15/05/2011 to 15/07/2011 in concept HR at HIndalco industries ltd. on the topic workers participation in management for partial fulfilment of MPMIR degree from BHU,Varanasi.

His work and conduct during the training was excellent.

We wish him all success in future.

Guided By :Mrs. Navneeta shome

HR Department Ntpc ltd. Shaktinagar, soneb

ABOUT NTPC
NTPC AN OVERVIEW

The year 1975, witnessed the birth of organisation that went on to achieve great feats in performance in a sector that was, until then, characterized largely by lack of investment, serve supply shortages and operational practices that made the commercial viability of the sector unsustainable. On November 7, 1975, NTPC came into being and with it came a bold way of looking at the power infrastructure that could support the economy, then reeling under the oil crises. Since then, NTPC has led the power sector with the creation of an immensely efficient and reliable power generation infrastructure which was till then largely in the hands of State Electricity Boards.

NTPC, true to the expectation, played a key role in the development of the sector and has emerged as the largest power utility, lighting every fourth bulb in the country. Powering the growth of the country was the prime motto and the vision had been to make available power in plenty.
4

NTPC, today has emerged as an Integrated Power Major, with a significant presence in the entire value chain of power generation business, In Forbes list of Worlds 2000 largest companies, 2007, NTPC occupies 411th place. With a current generation capacity of 30,144 MW, NTPC has embarked on plants to become a 75,000 MW company by 2017, the chain of power generation business.

NTPC was set up in the central sector to build, own and operate large thermal power station with unit sizes of 200MW and 500MW. Capacity addition by NTPC was meant to supplement the efforts of State Electricity Boards. The first four projects, namely singrauli, Korba, Ramagundam and Farakka, in four different regions of the country, were already on the drawing board and were to be set up as pithead stations. There was challenge aplenty. The expectations were high and so were high and so were risk. NTPC symbolized hope of the country suffering from crippling power black-outs, the Government of India, which was trying to put an ailing economy back on the track and the World Bank, which was supporting the country in many
5

development initiatives. Thus, NTPC was created not only to redraw the power map of India but to excel in its performance and set bench marks for others to follow. It succeeds on both courts.

National Thermal Power Corporation Ltd. (NTPC) and national hydroelectric power corporation ltd. (NHPC) were set up in the central sector to supplement the efforts of the states. With an installed capacity of 24,249 mega watt (MW), NTPC today contributes 27.08% of the nations power generation with only 20.06% of Indias total installed capacity.

Installed Capacity: NTPC Owned NO. Plant Coal Gas/Liquid Fuel Total 15 07 22 of MW Generation 23,895 3,955 27,850

Owned by JVs Coal & Gas Total 04 26 2,044 29,894

Coal Based Power Stations:

With 15 coal based power station, NTPC is the largest Thermal power generating company in the country. The company has a coal based installed capacity of 23,895 MW as on January 31, 2009.

Sl. No.

Coal

Based by

State

Commissioned Capicity(MW)

(Owned NTPC)

Singrauli
7

Uttar

2,000

Pradesh 2 3 Korba Ramagundam Chhattisgarh Andhra Pradesh 4 5 Farakka Vindhyachal West Bengal Madhya Pradesh 6 7 8 9 Rihand Kahalgaon NTCPP Talchar Kaniha Uttar Pradesh Bihar U.P. Orissa 2,000 2,340 840 3,000 1,600 3,260 2,100 2,600

10

Unchahar

Uttar Pradesh

1,050

11

Talcher Thermal

Orissa

460

12

Simhadri

Andra Pradesh

1,000

13

Tanda

Uttar Pradesh

440

14 15

Badarpur Sipat

Delhi Chhattisgarh

705 1,000

TOTAL

23,895

EVOLUTION

OF

NTPC

1975

1997

2004

2005

2007

NTPC was set up with 100% of ownership by govt of India

"Navratna" status enhancing the powers t the board of directors

Rechristened as NTPC Limited in line to become intehrated power utility

A listed company with govt ownership of 89.5% 3rd largest market capitlization

1st step towards strategic diversification largest power utility in India.

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NTPC VISION
A World Class Integrated power major, powering Indias growth, with increasing global presence

NTPC MISSION
Develop and provide Reliable power, related Products and services at Competitive prices, Integrating multiple energy Sources with innovative And eco-friendly Technologies and

Contribute to society

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NTPC CORE VALUES

BUSINESS ETHICS CUSTOMER FOCUS ORGANISATIONAL & PROFESSIONAL PRIDE MUTUAL RESPECT AND TRUST INNOVATION AND SPEED

TOTAL QUALITY FOR EXCELLENCE

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INTRODUCTION OF NTPC SINGRAULI (SSTPS)

NTPC Singrauli, the flagship station of NTPC is situated in Sonebhadra District of Uttar Pradesh.It has five unit of 200 MW(Turbine ;LMZ design Boiler ; combustion Engineering Design) and two units of 500 MW (Turbine ;KWU design ; Boiler ;combustion Engineering design ).Condenser cooling system of all the units is open system. It takes water from Govind Ballabh Pant Reservoir and releases in the same reservoir after a distance of around 10 KM through open canal. NTPC Singrauli has its own MGR (Merry Go Round) system for transportation of coal from NCL Jayant mines. Electricity generated from this plant goes to northern grid (UP, Haryana, Delhi, Rajasthan, Punjab, J&K, HP & Uttarakhand). Start up power can be taken from Rihand hydle or fromNTPC.Vidhyachal (Western grid).Either whole ash generated was disposed in ash dyke in slurry from. Now part of ash is being disposed in dry from for brick manufacturing and some part is provided to cement manufacturers.

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The first unit of the station was commissioned in 1982 and the last one in 1987.Since than NTPC, Singrauli is serving the nation day night. Being the flagship project, NTPC Singrauli has a number of first to its credit and has played a key role in positioning NTPC as a Brand in the power sector of the country. The humble and dedicated beginning made at Singrauli on 13th February, 1982 has yielded result and paved the way for many landmark achievements bringing the company to its present stature. Being the first project of NTPC, all focus was on Shaktinager. There was regular monthly PRT meeting at site, strict monitoring of the progress at project and corporate level. The Directors and CMD used to visit the project at regular intervals. Singrauli has been and will remain important in the history of power sector in India. It is, therefore, a matter of pride for all of us. As the Indian economy grows, the demand for power will only magnify while states do play their own parts in increasing power generation, the role of NTPC as a major source of quality power remains unassailed

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SINGRAULI AT A GLANCE

Installed Capacity Units Size

2000 MW Stage- I; 5 x 200 MW Stage-II; 2 x 500 MW

Location :

Shaktinagar sonebhadra Uttar Pradesh Pin- 231222

Coal Sources Water Sources Beneficiary States

Jayant / Dudhichua Mines Rihand Reservoir Uttar Pradesh, Rajasthan, Uttarakhand, Haryana, Jammu&Kashmir , Delhi, Punjab, Chandighar, and Himanchal Pradesh

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NTPC

Honble Prime Minister, Dr. Manmohan Singh in February 2005 observed:

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NTPC is a great success story of our times. It is imbued with the spirit of can do it. My best wishes for the future growth of this magnificent national enterprise.

HUMAN RESOURCE VISION

A world class integrated power major , powering Indias growth, with Increasing global presence
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HUMAN RESOURCE DEPARTMENTS

ED

EB

ER

ES

EDC

Rajbhasha Group

EMPLOYEE DEVELOPMENT (ED)

This department takes the HR initiatives of promotion, appraisals and other development aspects. ED maintains the Management Information System for the organization.

EMPLOYEE BENEFITS GROUP (EB)

The Employee Benefits Groups take care of the welfare and benefits like recruitment, separation loans and advances, which the employees are eligible. The Voluntary Retirement Scheme is also dealt by EBG.

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EMPLOYEE RELATIONS GROUP (ER)

The ERG is in charge of the Industrial Relations Contract Labor, security i.e. CISF and GPAIS of NTPC, Shaktinagar.

EMPLOYEE SERVICE GROUP (ES)

The ESG deals with entitlements handling and other law related matters.

EMPLOYEE DEVELOPMENT CENTER (EDC)

The EDC conducts various workshops and Training Programme to employees and other trainees. EDC conducts IGNOU exams for employees who are interested in doing higher education with jobs.

RAJBHSHA GROUP
As it is compulsory for all Government organization to keep a Hindi so is in NTPC also for the same reason NTPC has Rajbhasha Group. This Group does the Hindi translation; conduct debates and other Hindi promotional activities

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Workers Participation in Management

Workers participation in management is in essential ingredient of industrial democracy. The concept of workers participation in management is based in Human Relations approach to management which brought about 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 organisation. Workers participation in management meets the psychological needs of the workers to a greater extent. That way it may also be treated as the process of delegation of authority in the general areas of managerial functions. According to one view, workers participation is based on the fundamental concept that the ordinary worker invest his labour in, and ties his fate to, his place of work and, therefore, he has a legitimate right to have a share in influencing the various aspects of company policy. To quote the version of British Institute of Management, Workers participation in management is the practice in which employees take part in management decisions and it is based on the assumption of commonality of interest between employer and employee in furthering the long term prospects of the enterprise and those working in it. According to G.S. Walpole, participation in management gives the workers a sense of importance, price and accomplishment; it given him the freedom and the opportunity for self-expression; a feeling of belonging to his place of work and a sense of workmanship and creativity.
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It provides for the integration of his interest with those of the management and makes him a joint partner in the enterprise. Dr. Alexander considers a management to be participative, if it gives scope to the workers to influence its decision making process on any level or sphere or if it shares with them some if its managerial prerogatives. Clegg says, It implies a situation where workers representatives are, to some extent, involved in the process of management decision making, but where the ultimate power is in the hands of the management. According to Dr. Davis, it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them. According to Dr. Davis, it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them. In should be borne in mid that when individuals are provided with opportunities for expression and share in decision-making, they show much initiative and accept responsibility substantially. The rationale of workers participation in management lies in that it helps in creation amongst the workers a sense of involvement in their organisation, a better understanding of their role in the smooth functioning of industry and provides them a means of self-realization, thereby, promoting efficiency and increased productivity. Thus the concept workers participation in management encompasses the following:

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 It provides scope for employees in the decision making of the organisation. The participation may be at the shop level, departmental level or at the top level. The participation includes the willingness to share the

responsibility by works as they have a commitment to execute their decisions. The participation is conducted through the mechanism of forums which provide for association of workers representatives. The basic idea is to develop self control and self discipline among works, so that the management become Auto Management. Objectives The scheme has economic, psychological, ethical and political objectives. Its psychological objective of the scheme is to secure full recognition of the workers. Association of worker with management provides him with a sense of importance, involvement and a feeling of belongingness. He considers himself to be an indispensable constituent of the organisation. Socially, the need for participation arises because modern industry is a social institution with the interest of employer, the shareholders, the community and the workers equally invested in it. The ethical objective of participation is to develop workers free personality and to recognize human dignity.

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 The political objective of participation is to develop workers conscious of their democratic rights on their work place and thus bring about industrial democracy.
Levels of Participation Workers participation is possible at all levels of management; the only difference is that of degree and nature of application. For instance, it may be vigorous at lower level and faint at top level. Broadly speaking there is following five levels of participation: 1. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance. 2. Consultative participation: Here works are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests at the option of management and employees views are only of advisory nature. 3. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees. 4. Administrative participation: It ensure greater share of works in discharge of managerial functions. Here, decision already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation. 5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production, welfare etc. is called decisive participation. Forms of Workers Participation in Management The forms of workers participation in management vary from industry to industry and country to country depending upon the political system, pattern of management

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relations and subject or area of participation. The forms of workers participation may be as follows: 1. Joint Consultation Model 2. Joint Decision Model 3. Self Management, or Auto Management Scheme 4. Workers Representation on Board

1. Joint consultation model: In joint consultation model the management consults with the workers before taking decisions. The workers represent their view through Joint consultative Committees. This form is followed in U.K., Sweden and Poland. 2. Joint decision model: In this form both the workers and management jointly decide and execute the decisions. This form of participation is followed in U.S.A. and West Germany. 3. Self management of auto management: In this model, the entire control is in the hands of workers. Yugoslavia is an example to this model. Where the state industrial units are run by the workers under a scheme called Self Management or Auto Management Scheme. 4. Workers representation on board: Under this method, the workers elect their representative and send them to the Board to participate in the decision making process. The participation of workers may be formal or informal. In the formal participation, it takes the forms of formal structures such as Works Committee, Shop Councils, Production Committee, Safety Committee, Joint Management Councils, Canteen Committee etc. The informal participation may be such as the supervisor consulting the workers for granting leave, overtime, and allotment of worked or transfer of workers from one department to another. Workers Participation in Management in India
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Workers participation in management in India was given importance only after independence. Industrial Disputes Act of 1947 was the first step in this direction, which recommended for the setting up of Works Committees. The Joint Management Councils were established in 1950 which increased the participation of labour in management. The management scheme, 1970 gave birth to Board of Management. Since July 1975, the two-tire participation model called Shop Council at the shop level and Joint Councils at the enterprise level were introduced. Based on the review and performance of previous schemes a new scheme was formulated in 1983. The new scheme of workers participation was applicable to all central public sector enterprises, except those specifically exempted. The scheme with equal number of representatives will operate both at shop as well as plant level. The various functions of participative forum laid down in the scheme could be modified with the consent of parties. The scheme could not make such head way due to lack of union leaders consensus of the mode of representation and workers tendency to discuss ultra-vires issues e.g. pay scales, wages etc. Prior to WPM Bill, 1990 all the schemes of participation were non-statutory and concentrated on particular levels. For effective and meaningful participation at all levels, a bill was introduced in Parliament on 25th May, 1990. The bill provide for effective participation at all level by formulating schemes of participation. For electing representatives for participation it also provides for secret ballot. The appropriate government may also appoint inspectors to review participation schemes and the bill also has provision of punishment for those who contravene any of the provision of the Act. Thus the workers participation schemes in India provide wide scope for application and upliftment of workers. But in practice, these schemes have not met with success though they are successful in some private sector units. The factors responsible for the failure are: Attitude of the management towards the scheme is not encouraging. The preventatives of workers are not given due recognition by the management.

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The attitude of trade unions towards the schemes is negative as they consider these schemes are reducing the power of Trade Unions. Some Trade Unions boycott Joint Management Council meetings. The success these schemes require certain conditions.

Management should appreciate the scheme and accept them in full faith. Trade unions have to cooperate with the schemes. Workers have to be educated.

Thus workers participation in management in India has yet to succeed. It can be done by educating the workers, creating an environment in the organisatoin for coordination of workers and management. Review Questions 1. What do you understand by the concept of workers participation in management? What are its objectives? 2. What are the different forms of workers participation in management? 3. Discuss the concept of workers participation in management in the Indian context.

PARTICIPARTIVE FORUM
They are platform where representatives management as well as workers sit together to discuss their issues related to the working conditions, safety management, quality management, reduction of wastage and brainstorming for better and innovative ways of doing the same.

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Various Participative Foras are: 1) Four Shop Level Committees (SLC) ii. i. SLC-1 Operation Department

iii. iv.

SLC-2 Maintenance Department SLC-4 Services

SLC-3 Coal Handling Plant(CHP)

Department(Human Finance,etc.)

Resource,

2) Plant Labor Committee(PLC)

3) Site Management Committee(SMC)

4) Canteen Management Committee(CMC) 5) Hospital Advisory Committee(HAC) 6) House Allotment Committee

7) Township Advisory Development Committee(TADC) In NTPC SLC, PLC and SMC are followed.

INTRODUCTION ON PARTICIPATIVE MANAGEMENT

The Constitution (Forty- second) act, 1976 makes pioneer attempt to provide for workers participation in management in industries by suitable legislation by articles 43 A. A retrospect of scheme of workers participation through

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governmental a plant policies are some of the areas which set the boundaries of present chapter. The extension of organizational responsibility to who man instrumentally which served the industrial organization as worker or employee, has expanded the horizons of industrial philosophy in India. Since the evolution of the idea of socialistic patterns of society, the workers as one of the primary constituents of the industrial society have attracted increasing attention from all sector of the community. Workers participation is broad concept. It varies from country to country an industry to industry. Its main aim is to seek co-operation of those engaged in the production, in the fields of ethical, politico-social and economic. So for as the ethical kind is concerned participation is conceived of as a means of developing personality, satisfying human urge for self expression and recognizing the dignity of man as man. Employee participation in management is nothing new. It is as the institution of owners and workers. But it important has increase and has been brought into sharp focus with industrial revolution and the advent of large enterprises. Management refers to the constitution of consultative councils and committees, comprising representative of employees and employers to recommend step for improving productivity, machine utilization, job loading, for effecting saving in power, light, for identifying lazy workers, safety, so on and so forth.

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MEANING OF PARTICIPATIVE MANAGEMENT

In its broads sense, employee participation means associating representatives of workers at every stage of decision making, as is done informer east Germany & Yugoslavia. Participative management is considered as a process by which the workers share in decision- making extends beyond the decisions that are implicit in the specific contents of the jobs they do. This in actual practice, amounts to the workers having a share in the reaching of final management decisions in an enterprise. The workers participation has been differently defined by sociologists, psychologists, economists and lawyers. The sociologists view workers participation as an instrument of varying potentialities to improve industrial relations and promote industrial peace. The psychologists consider

participation as a mental and emotional involvement of a person in a group situation which encourages workers to share managerial responsibility. According to them workers participation is a psychological process by which encourages workers become self- involved in an establishment and see that it works successfully. The economists think that the real basis of workers participation is the higher productivity of labour and utilization of collective conditions of production. Lawyers, however, view workers participation asn a legal obligation upon the management to permit and provide for involvement of workers of industrial establishment through proper representation of workers at all levels of management in the entire range of managerial section.
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DEFINITION
A clear and more comprehensive definition is: 1. Workers participation, may broadly, be taken to cover all terms of association of workers and their representatives with the decision making process, ranging from exchange of information, consultations, decisions and negotiations to more in institutionalized from such as the presence of the workers member of management or supervisory boards or even management by workers them self practiced in Yugoslavia (According to ILO) 2. Worker participation in management is synonymous with codetermination- a terms popularly used informer east Germany to describe this participation. Participation management is also called employee involvement. 3. Participation management refers to the process of involving employees or employer representative at all levels of decision making. Codetermination is another terms of participative management.

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EVOLUTION OF PARTICIPATION MANAGEMENT

Participative management is a constitutional commitment in India. Article 43-A of the Constitution 42nd Amendment provides. The State shall take steps, by suitable legislation or in any other5 way to secure the participation of workers in the management of undertakings, establishments or other organizations engaged in any industry. A beginning towards workers participation was made with the passing of the industrial Dispute Act. 1947, which made it mandatory for every large industrial undertaking to constitute works committee comprising representative of employers and employees. In 1956, the Industrial Policy Resolution was adopted by the government , which stated that there should be some joint

consultation to ensure industrial peace, and improve employer- employee relations. Subsequently, a study team, under the chairmanship of Vishnu Sahay, Secretary in the Ministry of Labour, Government of India, was sent to the UK Sweden, France, Belgium, former West Germany and Yugoslavia to study the problems involved in the scheme which was similar to the British system of joint management councils and committees. The functions of these joint bodies were to be consultative and were not binding on the management. The response to the scheme was very encouraging, to start with. Soon however, interest in it waned.

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Till now, all the measures to introduce participative management have been non statutory. The non- statutory measures have obviously failed to elicit uniform response from all employers. Therefore, the government introduced on May 30, 1990, a bill- The Participation of Workers in Management Bill- in the Rajya Sabha. Three reasons have been advanced in support of the bill: 1. 2. 3. Step in tune with the Article 43 of the Constitution, The non statutory measures were not effective, and The statutory works committees have proved to be ineffective.

The committees were since then abolished. The bill requires every industrial enterprise to constitute one or mere shop floor councils at the shop floor level, and an Establishment Council at the establishment level. These councils were to have and equal number of representatives of employers and employees. A Shop- floor council has such powers and functions as it deems necessary in relation to: 1. 2. 3. 4. 5. Production Storing Materials economy Operational problems Wastage control

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6. 7. 8. 9. 10. 11. 12. 13.

Hazards of safety problems Quality improvement Cleanliness, Monthly targets and production schedules Cost- reduction efforts, Formulation and implementation of work- systems, Design group working and Welfare measures particularly related to the shops.

Modern management is so complex that no worker is in a position to play an effective role at he micro- level in terms of raising production and productivity. Decision making on larger issues is better left to specialist managers. But participative management is staging a come- back. The compulsions of emerging competitive environment have made employee involvement more relevant than ever before. Manager and the managed are forced to forget their known stands, break barriers and work unitedly. The old adag- a worker is a worker, a manager a manager, never the twain shall meet, should be replaced by manager and worker are partners in the progress of business.

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SCOPES AND WAYS OF PARTICIPATIN

There are three groups of international decisions which have a direct impact on the workers of any industrial establishment. 1. 2. 3. Social. Personnel. Economics.

Social
Social decision relate to hours or work, welfare measures, questions affecting work rules and the conduct of individual workers safety, health, sanitation and noise control.

Personnel
Personnel decisions refer to recruitment and selection, promotions, demotions, transfers, grievance settlement, work distribution, and so on.

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Economic
Economic decisions include financial aspects- the methods of manufacturing, automation, shut- down, lay- offs, mergers and similar other functions.

But there is a difference of opinion about the scope and the extent to which workers can participate in social, personnel and economic decisions. One school of thought is of the opinion that the workers or the trade unions should, on parity basis, sit with the management as equal partners and make joint managerial decision on all matters. The other school propounds the view that the workers should only be given and opportunity, through their representatives, to influence managerial decision at various levels. The first view could lead to the workers actual participation in the decision- making process of the management, while the second aspect will work out to be consultation of workers in managerial decisions.

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METHOD OF PARTICIPATIVE MANAGEMENT

Financial participation Board level participation Ownership participation

TQM

Complete control Workers Participation in management

Empowered teams

Staff or works councils

Quality circles

Joint councils and committees

Suggestion schemes

Job enlargement and enrichment

Collective bargaining

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REQUIRMENT ( PRE-CONDITINS) OF EFFECTIVE WORKERS PARTICIPATION

It is suggested that to ensure effective workers participation in management, the following conditions must be fulfilled:

(i) (ii) (iii) (iv) (v) (vi) (vii)

Democratic Attitude of Management Strong Union. Mutual Trust and Faith. Clarity of Objectives of workers Participation. Continuity. Cordial Industrial Relations Training in Participation.

WORKERS PARTICIPATION IN MANAGEMENT IN INDIA

The idea of workers participation in management in India in India has a long history. Its initiation was made around 1910 when it was introduced in the textile industry. Soon after the First World War, Tata Iron and Steel Company at Jamshedpur set up a Works Committee with workers cooperation. This committee has to be Ahmedabad and Calcutta also, Works Committees were set up, but with little success.

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The Royal Commission on Labour in India recommended works committee at the plant and resolution of disputes. The fate of these committees also, however, was no better than those set up earlier. They could not make much headway. After 1940, with the emergence of tripartite labour organization (Which eventually became Indian Labour Conference), trade unionists and political leaders made demand for labours association with management. But the scheme of joint consultation got a firm legislative foundation only when the Government of India enacted Industrial Disputes Act in 1947. The act made it obligatory for all units employing more than one hundred workers to constitute works committees. Since then the Government has introduced several scheme of workers participation in management of which Joint Management Councils ( 1956) and shop Councils and Joint Councils (1975) are of significance.

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WORKER PARTICIPATION IN MANAGEMENT AN INDIAN SCENE

Indian is passing through a period of transition and demands self-sufficiency in production. Rapid industrialization is one of the principal instruments for achieving economic growth. It is a means for the availability of goods and services in abundance and larger job opportunities. The success of the strategy for economic development is dependant on the industrial programme.

In a developing country like India the key to the progress is increased productivity. A country cannot progress unless the management and labour adopt a co-operative attitude towards each other so that conflicting interesting do not hamper the pace of productivity.

FORMS OF PARTICIPATION

The form or way in which workers can and do participate in management varies a great deal. To some extent this variation is related to the variations in the level of management, subjects or are as in which participation is sought, as also the pattern of labour management relationship prevalent in an organization.

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Miss Dorothea- de Scheweinitz in her research work, Labour and management in a Common Enterprise describes three stages of the development of labour management co-operation. The first stage is designated as information sharing in which an employer looks upon the Joint Committee as a means of informing Employees about business conditions and the outlook of their company, as well as telling them about changes in operating methods before they are put into effect. The second stage of development is designated problem sharing in which the employer recognizes that workers can make a contribution in certain areas such as material costs, quality or waste etc and that the management presents of development the management indicates a willingness to have labour to initiate ideas in any kind of production and personnel activities and labour with certain safeguards, is willing to contribute to the operation of the business. This stage is designated as Idea-Sharing. According to K.C. Alexander the Important form in which workers can participate in management are. 1. 2. 3. 4. Collective Bargaining Joint Administration. Joint decision- making Consultation and information sharing.

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IMPORTANCE OF PARTICIPATION
Participative management results in improved performance. Improved performance is the outcome of three variables. 1. 2. 3. Removal of conditions of powerlessness, Enhancement of self efficacy Employee perception of empowerment.

In other word The greatest benefit of participative management is that the employee identifies himself or herself with the work and this leads to an improved performance. 1. Participation tends to improve motivation because employees feel more accepted and involved in the situation. 2. Self esteem, job satisfaction, and cooperation with the management will also improve. 3. 4. 5. 6. Seduced conflict and stress. Employees may also reduce turnover and absence. Participation in itself establishes better communication. The Management tends to provide workers with increased information about the organizations. 7. 8. 9. Reduced industrial unrest. Reduced misunderstanding. Increased organization balance.
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10. 11. 12. 13. 14. 15.

Improve Communication. Higher productivity. Increased commitment. Industrial Democracy. Development of individual Less resistance to change.

LEVELS OF WORKERS PARTICIPATION

A review of management literature on participation reveals that (since Elton Mayo first advocated the idea) three schools of thought have emerged. The first looks at participation as a process of decision- making in which subordinates are allowed to have a say in or to influence the decision- marking. The second views participation as actual.

Influencing through Information sharing:- According to he first

view, participation takes place when the opinion of workers before taking a management solicits the

decision.

Joint Decision- making:- Joint decision making, the workers are active
participation in the process of decision- making. Their representatives sit across the table with the representatives of management to take important decisions
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particularly on matters affecting the worker. Workers may be member of works committee, Joint management council, etc

Self Control- The essential feature of self- control (or selfmanagement) is that management and workers are not visualized as two distinct groups but as active members with equal voting rights. Every member participates right from decision- making to execution of decisions.

MODES OF PARTICIPATION
Participation of workers in management of industrial enterprises in achieved by the following methods:Works Committee. A works committee consists of equal number of representative of both employers and workers. It meets frequently for discussion on common problems of the workers and the management. After discussion, joint decisions are taken and such decisions are binding on both the parties. Matters like wage payment, bonus, training, discipline, etc. ate discussed in such meetings. Work committees are extremely popular and effective in France and also in England. Joint management Council-Joint consultation scheme was started in the UK with the formation of whitely Councils ( works councils, district council and national council) on the recommendations of the whitely Committee which was
43

appointed by the British Government to recommend measures for the permanent settlement of differences between the workers and the management. Joint consultation involves setting up of joint committee represented by the workers and the management to discuss and give suggestions for improvement with regard to matters of mutual interest. The decisions of such committees

are not binding on either party, yet they ate implemented as they arte arrived at by mutual consultations. The welfare, safety measure, grievance redressal, training, working hours, etc. Collective Bargaining. It is an industrial relations process in which employees through their elected leaders participate on equal basis with management and in redressing grievances of the workers. Co- Partnership.- In co- partnership workers are allowed to purchase shares of the company and thus become its co-owners. In this way, they can participate in the management of the company through their elected representatives on the Board of Directors. As shareholders, the workers can also attend general meeting of shareholders and exercise their voting rights. Worker Director- Should labour association with management result in a workers representative being given a seat on the board of directors? Many trade unionists have themselves pointed out such and idea is illogical. In countries where the trade unions are very strong as in Britain and U.S.A., the trade union definitely reject the idea.

44

A workers- director would be in a minority and thus his view would carry little weight with the Board. Suggestion scheme- Under suggestion scheme, the workers are encouraged to give their suggestions to the management on various administrative matters, and their suggestions are considered carefully and accepted, if found suitable. In addition, rewards are also given to those who make constructive suggestions. Grievance Procedure- A grievance procedure also providers an opportunity to the workers to participate in decisions on matters affecting their interests. It is established for an early settlement of workers grievances. Quality Circle- A quality circle is a unique concept which provides for voluntary participation by the workers in the direction of quality improvement and self development. Quality circle firs originated in Japan during 1962 and then spread too many other countries.

SCHEME FOR EMPLOYEE PARTICIPATION IN MANAGEMENT IN NTPC

Introduction: - The scheme will be applicable to all central public sector undertaking accept those undertaking which are giving specifics exception from the operation of the scheme by the administrative ministry/department consumer in consultation with the department of labour taking into account the nature of the undertaking the product it is manufacturing etc.
45

Any undertaking of the central government which is departmentally. However will be excluded from this new scheme.

STRUCTURE OF THE SCHEME

The scheme salary operated both at the shop floor and plant levels in all public sector undertaking as regard participation at the board level. The administrative ministry/ department council will draw in constitution with the department of labour. A list of undertaking which it considered would be suitable for introduction of the scheme at the board level also. This list will be reviewed from time to time with a view bringing in as meaning undertaking as possible scope.

REPRESENTATIVE

The representation of the worker at shop floor and plant level would covered different categories, of worker such as skilled an unskilled, technical & Nontechnical, Managerial personnel would be excluded, but supervisory category such as foreman, charge man etc. would be covered both the worker and the management will get equal representation at the shop floor and plant level forum. Each party have a representation of five takes member depending on the

46

size workforce. The exact number would be arrived at by the management in consultation with the trade union leader in the under taking the management will also consult the concerned trade union leader and evolve through consensus the made for representation of worker at all level at which the scheme would be implemented. The management trade union leader would ensure that there is adequate representation for woman in the participative forum where woman workers constitute 10% or more of the total work force. The management would also ensure that adequate provision as made to safe guard workers. Independence from management pressure so as to ensure worker, protection against any harassment or victimization

FUNCTION
The participative arrangement may cover the following function at different levels. A.Shop level:- Production facilities, storages foul in shop material economy operational problem, wastage control, hazards , safety target and production schedule construction program formulation and implementation work system design group working welfare major related particularly to the shop

47

B. Plant level:- Operational area a. Evolution of productivity scheme taking into account the local condition b. Planning implementation monthly target and schedule c. Material supply and its short full d. Storages & inventories e. House keeping f. Improvement in productivity in general and in a critical area in particular g. Encouragement to and consideration of suggestion h. Quality and technological improvement i. Machine Utilization knowledge and development of new product j. Operational performance figure. k. Matter not resolved at the shop level or concerning more than one shop l. Review of the working of the shop level bodies. of undertaking an revised of

ECONOMIC & FINANCIAL AREA

1. Profit & loss statement balance sheet 2. Review of operating, expenses, Financial Result, cost of rules

48

3. Plant performance in financial terms, labour & managerial cost, Market Condition etc.

PERSONNEL MATTER
1. Absenteeism 2. Special Problem woman worker. 3. Intimation and supper vision of worker training programs . 4. Administration of social security scheme

WELFARE AREA
1. 2. Operational details implementation of welfare scheme, medical benefit and transport facility 3. 4. 5. 6. 7. Safety major. Sports & Game Housing. Township Administration, canteen etc. Control of gambling, drinking,

49

ENVIRMENTAL AREA
1. Extension activities & communities development project Pollution Control.

2.

BOARD LEVEL.
At the board level the workers representative will participate in all the function of the board. One of the special function assigned to the board would be covering the work shop & plant level participating forum,

WORKING OF THE FORUM

At the shop floor & Plant level, the participating forum will to arrived at a decision by consensus but ware no mutually acceptable consensus emerges, they will refer the matter for the next fire forum

MODIFICATION OF THE FUNCTION OF THE FORUM

The scope of the function can be modified by mutual consensus between the worker in the management.

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MONITERING OF THE SCHEME

As time bound programme for implementation of the scheme with in ONE YEAR will be drawn up by the administrative ministries/ department concerned, the programme of the working of the scheme in individual undertaking will be reviewed quarterly

GENERALS
No legislation would be undertaking immediately give any legislative backing to the scheme, such as step would however be considered after educate experience has been gained in the working of the scheme.

PARTICIPATIVE FORUM
1. Safety committee 2. Township Advisory committee. 3. Joint Plant/ Project level council 4. Shop/ Department level council 5. Canteen management committee. 6. Employee welfare Committee. 7. Sports Council. 8. House Allotment Committee
51

Participative Forums in NTPC

1.0

PREAMBLE
In order to bring about a sense of involvement and effective participation amongst the employees at various levels, towards a coordinated and determined effort for better all-round performance and improved efficiency, it is imperative to provide institutionalized forums for joint participation/consultation of the employees in the timely completion of projects and their smooth functioning. It is desirable to have such forums not only in the areas of construction/production, productivity/efficiency, target-setting, reduction of cost, elimination of waste, safety, house-keeping, and physical working conditions, etc. but also in the areas of day-to-day concern of the employees away from their workplace, such as in the areas of recreation and cultural activities, horticulture, environment, etc.

2.0

PARTICIPATIVE FORUMS
2.1 With the above broad objective of giving a sense of oneness with the organization and the feeling of involvement, to make employees feel about the various measures in hand for improving their working and living conditions, to make use of the valuable suggestions put forth by the employees for the benefit of the organization and the personnel working in it, it is desirable to have various institutionalized forums.

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2.2

During the construction stage when even the first unit has not been commissioned, keeping in view the employee strength and other relevant factors, the following committees may be constituted to start with:

2.2.1 2.2.2

Safety Committee Township Advisory Committee

2.3

During the phase when both generation and construction activities are going on simultaneously as well as after completion of construction activities, the participative forums would be as follows: 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8 Safety Committee Township Advisory Committee Joint Plant/Project Level Council Shop/Departmental Level Council Canteen Management Committee Employees Welfare Committee Sports Council House Allotment Committee

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3.0

SAFETY COMMITTEE

3.1

Objective The objective of the Safety Committee would be to create safety consciousness among employees and suggest ways and measure to the management for creating safe working conditions and a safe working culture.

3.2

Constitution The constitution of the Safety Committee would be as follows: 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 Dy. General Manager Chairman Manager/Dy. Manager from Erection/Operation Safety Officer Secretary Officer(HR-Welfare) One Executive from Civil Construction Department Senior-most employee in the Supervisory category from Mechanical Erection. 3.2.7 Senior-most employee in the Supervisory category from Electrical Erection. 3.2.8 Senior-most employee in the Workman category from Mechanical Erection. 3.2.9 Senior-most employee in the Workman category from Electrical Erection.

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3.3

Meetings

The Committee will meet once in three months or at such frequent intervals as felt necessary. The Safety Officer, who would work as the Member Secretary,
will do necessary follow-up for the implementation of conclusions reached at in these meetings.

4.0

TOWNSHIP ADVISORY COMMITTEE

4.1

Objective The objective of the Township Advisory Committee would be to advise the management in the administration of matters relating to municipal affairs and township maintenance and to make suggestions for the provision of township facilities, horticulture and environment, etc.

5.1

Constitution The constitution of the SLC would be as follows: 1. 2. 3. Head of Department Chairman An Executive from the HR Department Secretary The number of representatives of employees and the Management would be equal and would vary between 8 and 12 depending on the employee strength. The Management representatives would be recommended by the Heads of Department and approved by the Head of Project. They

55

would consist of representatives from the Supervisory category whose number would be 1 or 2 depending on whether the total number of Management representatives is 4 or 6. Workers representatives would be elected by secret ballot. The members once nominated or elected would hold position for one year. Any vacancies arising during the term would be filled in the same manner as mentioned earlier, but only for the remaining period of the term. 5.2 Terms of Reference

1. Assist

Management

in

achieving

monthly/yearly

generation/construction targets; 2. Improvement of production, productivity and efficiency including elimination of wastage and optimum utilization of machine capacity and manpower; 3. Specifically identify areas of low productivity and take necessary corrective steps at shop level to eliminate relevant contributing factors; 4. To study absenteeism in the shops/department and recommend steps to reduce them; 5. 6. 7. Safety measures; Assist in maintaining general discipline in the shop/department; Physical working conditions, such as lighting, ventilation, noise, dust etc., and reduction of fatigue; 8. Welfare and health measure to be adopted for efficient running of the shop/department; and

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9.

Ensure proper flow of adequate two-way communication between the management and the workers, particularly on matters relating to production figures, production schedules and progress in achieving targets.

5.3

Meetings The Council will meet once in a month or at such frequent intervals as felt necessary. The Secretary of the Council will prepare the minutes of the discussions and will follow-up the implementation of the conclusions.

6.0

OTHER PARTICIPATIVE FORUMS

A number of other participative forums would be set up to deal with specific areas, as mentioned below, and would comprise of equal number of employee and management representatives.

6.1

Canteen Management Committee Day-to-day issues of Plant canteen management.

6.2

Employees Welfare Committee Organising welfare, recreational and cultural activities.

6.3

Sports Council Promoting sports consciousness. 57

6.4

House Allotment Committee

Allotment of house to entitled employees.

7.0
7.1

REFERENCES
Approval of Policy paper on Participative Forums by the Management

Committee in their meetings held on 30.04.1985 & 01.05.1980. 7.2 7.3 CPC No. 55/80 dated 19.06.1980. Decision taken in the 9th meeting of the Heads of Personnel held on 2nd & 3rd

October 1981 and circulation of Policy Documents on Welfare Facilities for NTPC employees. 7.4 Decision taken in the meeting of GMs and PMs in April-1982, and the

Scheme of Workers Participation in Management as set out in the annexure to the minutes of the said meeting. 7.5 Scheme of Employees Participation in Management circulated vide

Corporate Personnel Division endorsement No. 01:Pers:29(3) dated 21.08.1984. for the provision of township facilities, horticulture and environment, etc.

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METHODOLOGY

The procedure using, which researchers go about their work of describing, explaining and predicting phenomena is called Methodology. Methods compromise the procedures used for generating, collecting, and evaluating data. Methods are the ways of obtaining information useful for assessing explanation. DATA COLLECTION After completion of Questionnaire the researcher edited the data collected. For further processing, the data have been entered in table with the help of master table; other calculations were carried out with the help of scientific calculator.

NATURE OF DATA The quality of data can be expressed in the terms of its representative features of the reality which can be ensured by the usage of fitting data collected method.

59

PRIMARY DATA The primary data are collected from the Contract Workers of NTPC (Shaktinagar). The major tool that has been used for collecting data in this study is an Questionnaire method.

SECONDARY DATA Company profiles, websites, magazines, articles were used widely as a support to primary data. The secondary data has been collected from various records, files & registers from the factory and journals, pamphlets, internet etc
SOURCES OF SECONDARY DATA 1. Journals 2. Books 3. Magazine

RESEARCH DESIGN: - To know about the present condition or status regarding particular item or group of item description research is conducted. The descriptive research is descriptive of the state of affair as it exists at present. Such a result e was required in analytical form. The survey was conducted using questionnaire method. By using this method we found the present situation, the finding and its analysis is described in the further parts.

60

SAMPLE SIZE: - Sample size refers to the number of the person to be selected from the universe for conducting a survey. I have selected the sample size of sixty.

SELECTION OF STUDY AREA :- the SURVEY has been carried out in NTPC SINGRAULI (SHAKTINAGAR).

SAMPLE TECHNIQUE: - As the universe is quit large so a relatively small group of individual is selected for representing the whole universe.

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62

STUDY ON EFFECTIVENESS OF PARTICIPATIVE FORUM

Name: Department: Date: Please tick the relevant: Union/Association representative Management representative 3 4 5 Somewhat Agree Agree Strongly Agree

1 Strongly Disagree

2 Disagree

Attributes
1 2 3 4 I feel that the meetings of participative forums are conducted timely. I feel that the issues raised in the participative forum are discussed properly. I feel my ideas and suggestions are implemented properly through this forum. I feel that the suggestions given through these forums are helpful in improving day to day working. I feel that the meetings of the participative forums are coducted in a proper manner. I feel that being a member of this participative forum has improved my commitment towards the organization. I think that the participative forum fosters a healthy relationship among employee and the management. I feel that the participative forum facilitates better decision making and problem solving.

Sl.1 No.

5 6

8 9

I think that participative forum has increased the quantitative and qualitative skills of members. 10 I feel that the issues raised up are impartially discussed and accepted by the management.

Note: Please give your valuable suggestions for improving the low score areas. Sl. No. 1 2 63 Suggestions

3 4 5

STUDY ON EFFECTIVENESS OF PARTICIPATIVE FORUM

: : : :

/ 1 2 3 4 5

1 2 3

Attributes
-

5 6

8 9

64

10

1 2 3 4 5

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SURVEY REPORT

Sample size(60)

Q.1 I feel that the meetings of participative forums are

conducted timely.?
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [ 03 ] [ 18 ] [ 33 ] [ 03 ] [ 03 ]

Ans (1)
3 3 3 18
strongly disagree Agree strongly agree Disagree somewhat agree

33

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Q.2 I feel that the issues raised in the participative forum are
discussed properly?
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [ 03 ] [27 ] [ 24 ] [0 ] [ 03 ]

Ans(2)
0 3 3

24 27

strongly disagree Agree strongly agree Disagree somewhat agree

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Q.3 I feel my ideas and suggestions are implemented properly through

this forum?
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [03 ] [ 21 ] [ 21 ] [0] [15 ]

Ans(3)
0 2 3

21 21

strongly disagree Agree strongly agree Disagree somewhat agree

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Q.4 I feel that the suggestions given through these forums are helpful in
improving day to day working?
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [ 06 ] [ 21 ] [ 18 ] [ 00 ] [ 15 ]

Ans (4)
15 6
strongly disagree Agree

0 21

strongly agree Disagree somewhat agree

18

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Q.5 I feel that the meetings of the participative forums are conducted in a
proper manner?.
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [ 03 ] [ 21 ] [ 24 ] [ 00 ] [12 ]

Ans(5)
12 0 3 strongly disagree Agree strongly agree Disagree 24 somewhat agree

21

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Q.6 I feel that being a member of this participative forum has improved
my commitment towards the organization?.

A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree

[ 06 ] [ 12 ] [ 30 ] [ 03 ] [ 09 ]

Ans(6)
9 6 12 strongly disagree Agree strongly agree Disagree somewhat agree

30

71

Q.7 I think that the participative forum fosters a healthy relationship

among employee and the management?
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [ 03 ] [ 27 ] [ 15 ] [ 03 ] [ 12 ]

Ans(7)
12 3 27 15 strongly agree Disagree somewhat agree 3 strongly disagree Agree

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Q.8 I feel that the participative forum facilitates better decision making
and problem solving?.

A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree

[ 03 ] [ 18 ] [ 18 ] [ 03 ] [ 18 ]

Ans(8)
3 18 18 strongly disagree Agree strongly agree Disagree somewhat agree

18

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Q.9 I think that participative forum has increased the quantitative and
qualitative skills of members?.
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [ 06 ] [ 21 ] [ 21 ] [ 00 ] [ 12 ]

Ans(9)
12 0 21 6 strongly disagree Agree strongly agree Disagree somewhat agree

21

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Q.10. I feel that the issues raised up are impartially discussed and accepted by the management.?
A. Strongly Disagree B. Agree C. Strongly Agree D. Disagree E. Somewhat Agree [ 03 ] [ 15 ] [ 30 ] [ 00 ] [ 12 ]

Ans (10)
12 0 3 15 strongly disagree Agree 30 strongly agree Disagree somewhat agree

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CONCLUSIONS
By the survey I can conclude that: A) Most of the respondent are stoongly agree that Participative management meeting is conducted timely at NTPC B) Most of the respondent are somewhat agree that Participative forum foster a healthy relationship among the employee and the management C) Some of the respondent are disagree & most of them are strongly agree that it secures mutual co-operation of employees & employers. D) Almost all of the respondent are fully agree that it helps in greater efficiency & productivity in the interest of the enterprise but most of them partly disagree E) Most of the respondent are fully agree that it improves the healthy relationship among employees &employers. & some are partly agree. F) Most of the workers wants that some serious and productive question should be raised rather than small and unproductive one

Few of them do not actively participate in the working

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77

BIBLIOGRAPHY
BOOKS RESEARCH METHODOLOGY: P.C.Tripathi P.subhrao PARTICIPARIVE MANAGEMENT: G.Vernadani HUMAN RESOURCE & PARSSONAL MAMAGEMENT: K.Aswanthappa

MAGZINES:
Vidyut Bharti : by Central Authority, Quarterly journal Ntpc Horizon: by NTPC, Quarterly Shakti Sandesh, Monthly Vidut Swar, Quarterly NTPC News Monthly Vol : I, II

WEBSITES:
Intranet NTPC Google.com hrmedia.com ntpc.com Singrauli.com

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