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CHAPTER 5

WORKERS PARTICIPATION IN MANAGEMENT

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WORKERS PARTICIPATION IN MANAGEMENT

I) INTRODUCTION AND MEANING

Workers participation in management refers to the participation of non-managerial
employees in the decision-making process of the organisation. Workers participation
gives employees the mental and psychological satisfaction and thereby increase their
involvement in the affairs of the organization. Workers participation in management is
the most accepted principle of industrial relations in modern industry throughout the
world and in India too. In the words of Keith Davis “Participation is a mental and
emotional involvement of a person in a group situation which encourages to contribute to
group goals or objectives and share responsibilities.”

According to the 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.

Sawtell defined participation as any or all the processes by which the employees other
than managers contribute positively towards the reaching of managerial decisions which
affect their work.

Workers participation is a system where the workers get the rights to participate in
decisions on issues which are of concern to the workers like wages, working conditions,
safety, welfare, sharing of gain, production related aspects, incentives and allowances
were considered to be legitimate areas of workers concern and therefore workers should
be consulted when these are determined.

Workers participation in management is one of the important aspects of industrial

democracy. It is distribution of social power in industry so that the power is shared
among all those who are engaged in work rather than power being concentrated only in
the hands of a few managers. Participation is a system of communication and
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consultation either formal or informal by which employees can express their opinions and
ideas and contribute to managements decisions. Workers participation is a method of
providing opportunities for all the members of the organisation to contribute his mental
ideas along with his physical efforts towards the improvement of organisational
effectiveness as well as enhancing his own economic welfare. Better participation and
greater responsibility in the decision making process on part of the general workers will
perhaps develop their organisational loyalty, confidence, trust involvement and a sense of
responsibility towards supervisors, managers and the organisations in general.

Participation has to be done at different levels of management.

a) At the shop floor level.
b) At the department level and
c) At the board level.
The decision making at these different levels would assume different levels would
assume different patterns in regard to policy formulation and execution. When workers
participate in decision-making and they have to commit themselves for the
implementation of decisions made. They become more responsible and involved.

Workers participation in management is a humanitarian approach to the labour class

giving them new set of values giving them a social status, base and a place in the
industrialized society.

II) OBJECTIVES OF WORKERS PARTICIPATION IN MANAGEMENT

The objectives of workers participation in management may vary from country to
country, state to state, and from industry to industry depending upon the quality of
manpower, level of technology, level of competition socio-economic status, political
philosophy, attitude of the working class and the industrial relations scene. Though there
are so many factors governing the objectives of workers participation some common
objectives are:
1. To prevent workers from exploitation by the management or by the owners of the
organisation.
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2. To have democracy in the organization.

3. To have proper development of the working class.
4. To resolve conflicts and differences between management and employees in a
democratic manner.
5. To create in employees a sense of participation in industry.
6. To encourage suggestions from employees.
7. To improve the working and living conditions of employees.
8. To promote better understanding between labours and management on the various
issues of the organisations.
9. To give employees a better understanding of their role in the working of the industry.
10. To give the employees an opportunity for self expression leading to industrial peace,
good relations and increased co-operation.
Ill) LEVELS OF PARTICIPATION
There is no hard and fast rule as to which level of management, workers participation in
management should be introduced. In fact participation is possible at all levels of
management. The only difference is that of degree and nature of application. For
example, it may be light or not so vigorous at the top level and may be very strong and
vigorous at a lower level. A lot depends upon the nature of work, nature of fiinctions,
quality of manpower, strength of workers, attitude of trade unions, attitude of
management and the organisational culture. There are other factors which are also
responsible for the application of workers participation in management like the
government policy on labour. Industrial Acts, phases of trade cycle, economic and
political stability and situation. Workers participation is more of a balancing situation.
When there is more use of authority in decision making participation in management will
be negligible but when the use of authority is in small proportion, participation will be
maximum. In between the two elements more use of authority and less use of authority
the nature of participation will also depend upon the type of issues, attitude of employees,
management culture and the past experience of management.

Broadly speaking there are five levels of workers participation in management.

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1. INFORMATION PARTICIPATION LEVEL

Information participation ensures that the employees are in a position to receive
information and express their views pertaining to the matters of general and economic
importance. The management depends upon the joint committee for informing the
workers about the business conditions and also informs them about the various changes
put into effect in the working of the organisation.

2. ASSOCIATIVE PARTICIPATION LEVEL

In this level of participation members have the right to receive information discuss and
give suggestions on the general and economic conditions of the organisation like
production, markets, finance and technology affecting the position of the organisation or
organisations profit and loss account. The workers have the right to receive information
and discuss important matters like change in the methods of production, expansion of
business or closing of a particular unit. The workers not only receive information and
discuss the issues but when suggestions are made it is binding on the management.

3. CONSULTATIVE PARTICIPATION LEVEL

In such level of participation workers are consulted on the matters of employee welfare
such as work, safety, health and training. It involves a higher degree of sharing of views
of the workers and giving them an opportunity to express their feelings and opinions. In
this level of participation it is the managements prerogative to accept the suggestions of
the workers given at the participative forum. Workers suggestions are only of advisory
nature.

4. ADMINISTRATIVE PARTICIPATION LEVEL

Administrative participation gives a greater degree of sharing of authority and
responsibility of management functions. The issues taken at this level are welfare, safety,
training, preparing work schedules, working hours, incentives, holidays and rewards for
valuable suggestions. In this level of participation alternatives are given by the
management and the workers select the best from those decided for smooth
implementation and efficient administration.
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5. DECISIVE PARTICIPATION LEVEL

This is the highest form of participation where decisions are taken jointly on the matters
relating to production, welfare, economic, financial and administrative policies.
Delegation of authority and responsibility of managerial fiinctions to the workers is
maximum at this level of participation. When participation is done at this level it speaks
of democracy and the democratic style of management. It also shows the faith and trust
between management and the employees.

IV) FORMS OF WORKERS PARTICIPATION IN INDIA

FORMS OF WORKERS PARTICIPATION IN INDIA

i 1

Works Joint Unit Shop Workers

Committee Production Council Council Participation
Committee In Share
Capital
r

Joint Joint Plant Workers

Management Council Council Representation
Council On the Board
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I. WORKS COMMITTEE
The works committee started in India because of the Industrial Dispute Act 1947. It was
this act which stated that “in case of any industrial establishment in which 100 or more
workers are employed or have been employed on any day in the preceding twelve months
the appropriate government may by general or special order require the employer to
constitute in the prescribed manner a Works Committee consisting of representatives of
employers and workman”. The objective of the works committee is to create cordial
relations between the management and the workers. The Works Committee does not
perform any administrative function it is an advisory body. It is not expected to deal with
matters relating to wages, allowances, bonus, etc.

II. JOINT MANAGEMENT COUNCIL

For the success of Industrial Planning it was necessary to set up Joint Management
Council in the industrial undertaking which will have representatives of Management
Technicians and Workers.

Joint Management Council can discuss issues related to lighting, ventilation, temperature,
sanitation, drinking water, canteens, dinning and rest rooms, medical and health services,
safe working conditions, administration of welfare fiinds and recreational activities.

The governments Industrial Policy resolution of 1956 stated that in a socialist democracy
labour is a partner in a common task of development and should participate in it with
enthusiasm, there should be joint consultation and workers and technicians should
wherever possible be associated with management.

The objective of the Joint Management Council were to promote cordial relations
between management and labour to build trust and understanding and also to increase
productivity, secure effective welfare and other facilities to train workers and share
responsibilities and in general to fiinction as a consultative body. The Third Five year
Plan desired that the Joint Management Council’s become a normal feature of the
industrial system, and integrate private enterprises into a socialist order.
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III) JOINT PRODUCTION COMMITTEE

Joint Production Committee consists of equal number of representatives of management
and unions. Generally the following functions are entrusted to the committee.
i) To study operational results as well as current and long term departmental production
problems.
ii) To advice management on steps necessary at the departmental level to promote and
rationalize production.
iii) To improve methods of production and productivity.
iv) To reduce cost and reduce deflective work. To improve quality of products.
v) To improve the upkeep and care of machinery, tools and instruments.
vi) To promote efficient use of safety devices.
vii) To improve the working conditions and ensure better functioning of the department.

IV) JOINT COUNCILS

At every division, department or branch employing 100 or more people there shall be a
joint council. Every organisation shall decide the number of councils to be set up for
different departments or services rendered in consultation with the recognized union or
workers. Only those who are actually engaged in the organisation or service shall be the
member of the joint council the tenure of the council shall be two years. The joint council
shall meet whenever considered necessary but atleast once in a quarter. Every decision of
the joint council shall be binding on the management and the workers and shall be
implemented within one month unless otherwise stated in the decision.

The Joint councils are concerned with matters related to the unit councils. The joint
councils shall review and settle issues which are not settled by the unit councils. The
work of the joint councils shall also be related to the development of the skills of the
workers, improvement of working conditions, preparation of schedules of working hours
and holidays, recognition and appreciation of suggestions received from the workers and
discuss any matter related to the improvement of performance of the organisation.
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V) UNIT COUNCILS
Motivated by the success of the Joint Councils in the manufacturing and mining units a
new scheme of worker’s participation in management in commercial and service
organisations in the public sector, having large scale dealings with public was announced
on 5“* January 1977, for units employing at least 100 people. The organizations include
hotels, hospitals, sea transport, road transport, air transport railways ports, docks,
research institutions banks, insurance companies, post and telegraph offices, food
corporation. State Electricity Boards, State Trading Corporation, Mines, and Minerals
Trading Corporation and Irrigation systems.

The unit council shall have representatives of workers and management for organisations
having employed 100 or more workers. These unit councils are formed to discuss day to
day problems and find solutions. Unit council shall consists of equal number of
representatives of the management and workers. The actual number of members shall be
decided by the management in consultation with the recognized trade union. The total
number of members shall not exceed 12. Every decision of the unit council shall be
implemented by the parties concerned within a month, unless otherwise stated in the
decisions itself. A unit council once formed shall function for a period of three years. The
council shall meet at least once a month.

The functions of the unit councils are:

1. To create conditions for maximum efficiency and better customer service.
2. To identify the areas of inferior service and take action to eliminate them.
3. To study absenteeism problem and recommend steps to reduce it.
4. To suggest improvements in the working conditions such as light, dust, noise and
ventilation.
5. To ensure proper flow of communication between management and workers.
6. To recommend and improve safety, health and welfare measures.
7. To discuss any other matter which has bearing on the performance for ensuring better
customer service.
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VI. PLANT COUNCIL

The Plant Council is applicable to all central Public Sector undertakings, except those
which are given specific exemption from the operation of the scheme by the government.
It has one Plant Council for the whole unit. Each Plant Council shall have not less than
six members and not more than eighteen members. The members of the council are only
those who are actually engaged in the unit and the members of the council shall have a
tenure for a period of three years. The members of the plant council shall meet at least
once in a quarter. Every decision of this council shall be on the basis of consensus and
not by voting and it shall be binding on both the employer and the employees. The
decision of this council shall be implemented within a month unless otherwise stated in
the decision itself.

The Plant Council normally deals with operational areas. Economic matters. Financial
aspects. Personnel matters, Welfare and Environmental aspects.

VII. SHOP COUNCILS

Every industrial unit employing 500 or more workers the employers shall constitute a
Shop Council. Shop Council shall have equal number of representatives of employers and
workers. All the members of the shop council shall be from the unit concerned. The total
number of members of the Shop Council shall not be more than 12. Every decision of the
Shop Council shall be implemented by the parties concerned within a period of one
month unless otherwise stated in the decision itself A council once formed shall function
for a period of three years. The council shall meet as frequently as necessary but at least
once a month.

VIII. WORKERS REPRESENTATION ON BOARD OF MANAGEMENT

On the recommendations of the Administrative Reforms Commission made in its report
on public sector undertakings, the Government of India accepted in principle that
representatives of workers should be taken on the Board of Directors of Public Sector
enterprises. The representatives of workers on the board should be those actually working
in the enterprise. Worker’s Representation on Board shall be limited to companies which
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employ 1000 or more persons. (Does not include casual or badli workers). If 51% of the
workers vote through secret ballot in favour of participation, the company is under legal
binding to introduce this scheme. However any company can voluntarily introduce this
participation scheme. In this scheme the worker Director will be elected by all the
workers of the company through secret ballot. The workers who gets elected as a director
is given training in the various important aspects of business. The workers director
participates in all the functions of the board. They may also review the working of the
shop and plant councils and take decisions on matters not settled by the council. It has
been observed that this scheme has failed to develop good relations based on faith, trust,
understanding and cooperation. This scheme has also not helped much in decision
making.

IX. WORKER’S PARTICIPATION IN SHARE CAPITAL

Workers Participation in Share Capital is the outcome of the Sachar Committee. The
Sacher Committee had in its report to the government observed that majority of the
organizations are in favour of workers participation in Share Capital and that future
issues of shares the companies should reserve a portion of the new shares exclusively for
the workers. These shares in the first instance must be offered to the employees of the
company, failing that they should be offered to the existing shareholders or the public.
Due to this scheme workers get an opportunity to have a share in the capital of the
organisation where he is working. He therefore gets the status of the employee and also
the status of the employee and also the owner of the company. When an employee is a
part of ownership of the capital there is a sense of belonging and a sense of responsibility.
This scheme awns to improving industrial relations and a feeling of being together.

V. MEASURES TO MAKE THE SCHEME OF WORKERS PARTICIPATION IN

MANAGEMENT MORE MEANINGFUL
1. The first most important aspect to make the scheme of workers participation more
meaningfiil is the trade union movement in our country should be strong. Instead of
having small, fragmented and unorganized unions we should have one, strong
organized union which understands the problems of the organisation the problems of
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the employers and the problems of the employees. So that it can give better solutions
to the scheme and improve participation.

2. To make the scheme of worker’s participation in management a success the education

of worker’s become very important. When the employees get appointed on various
committees and councils they must understand the laws, the bye laws, the various
amendments made by the government and commissions and the objective behind
these acts and laws. They must not only understand for themselves but should be able
to explain to the others employees in the organisations. In the absence of adequate
knowledge they will not be able to participate meaningfully and shall not be able to
take proper decisions.

3. For effective working of the scheme there should be proper and quick implementation
of policies and decisions made by the councils and forums. Any delay may lead to
loss of interest of the employees, loss of faith, dissatisfaction and frustration. This
will only lead to the failure of the scheme.

4. One important measure to make the scheme of workers participation in management a

success is the responsibility on the management to make the atmosphere of work
more congenial. The environment for work should be highly motivating for the
employees. If industrial relations are poor even the implementation of the scheme
becomes difficult but if industrial relations are good, there is maximum co-operation
from the employees. So eflForts should be taken to develop and maintain good
industrial relations.

5. There should be maximum faith and trust between the employer and the employee
and both should have faith in the scheme of workers participation, in management.
Faith and trust between employer and employee develops a bond between each other
and good relations are developed. Faith and trust improves communication which is
very essential for good industrial relations. The management and the workers should
not implement the scheme for the sake of implementation of workers participation
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they should have confidence in the scheme and should accept it in total. Participation
in the scheme should be real and the goals and targets set should not be unrealistically
high.

6. The method of workers participation in management should be used in the

organisation as a complementary to collective bargaining and not a substitute to the
method of collective bargaining. The management should design a proper system so
that it can take advantages from both collective bargaining and workers participation.

7. To make workers participation more effective the management should design a

proper system of evaluation for the working of council’s at diflFerent levels. The
scheme should be assessed periodically and if required modifications should be made
to make the scheme more beneficial for the employer’s and the employees.

8. Management and workers should have a constructive attitude towards the schemes of
workers participation. They should assume that workers participation schemes as
highly valuable and powerllil tool for increasing productivity, removing differences,
educating workers and for increasing labour management co-operation.

VI. HISTORICAL REVIEW OF WORKERS PARTICIPATION IN INDIA

Workers Participation in Management has a long history in India. This scheme was
suggested first by Mahatma Gandhi in 1920 in the textile mills of Ahmedabad. According
to Mahatma Gandhi both workers and shareholders contribute to the prosperity. There
should be a strong relationship of friendship, trust and co-operation. He was of the
opinion that “Capital and Labour should support each other and bring peace and harmony
to the organisations. The idea of Mahatma Gandhi still remains to be the most accepted
one in our country. The year 1920 may be regarded as the starting point of workers
participation in India. In 1958 TISCO had established joint committees for workers to
come and participate in the various affairs of the company.
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The Royal Commission observed that the working of the works committee was very
disappointing and the same was with the working of the joint committees which were
present in the railway. The Commission found out some reasons for the poor performance
of committees and councils. The main reasons were unorganized labour unions, poor
quality of labour and poor education of workers. The management also felt that these
committees would interfere with the rights and responsibilities of the management and so
did not accepted this easily. Even the trade unions felt that these committees and councils
were working against them.

The first most important step taken in this direction was the Industrial Dispute Act 1947
which gave importance to works committee. The Industrial Policy of 1948 had suggested
that the labour should be involved in all matters related to industrial production. The First
Five Year Plan of 1951 also called for the constitution of joint committees at all levels. It
also gave importance to works committee for the settlement of differences between
workers and management on the spot for improving industrial relations.

The Second Five Year Plan had given more details of the philosophy of worker-
management relationship. It stated that in the socialist society it is important that the
workers should be made to feel that he is helping to build a progressive state. The
creation of industrial democracy is therefore important for the establishment of a socialist
society. This plan also gave importance to the formation of councils of management
consisting of representatives of the management and workers as it increases the
association of labour and management. It should be the responsibility of the management
to supply information to the employees, for them to work effectively. The council should
discuss and make suggestions for improvement in the working of the establishment.

The Industrial Policy Resolution of 1956 also gave importance to the need for workers
participation in management. It also stated the importance of joint consultation between
workers, technicians and management and expected that the public sector enterprises
should set example in this respect. The aim of the government in giving importance to
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Workers Participation was to create a socialist society where workers can share
managerial powers.

A study group on workers participation in management was also set up in 1956. The
study group consisted of members representing the government, employers and workers.
The study group examined the system of workers participation in various countries like
U.K., France, Germany, Belgium, Sweden and Yugoslavia. The study groups was in
favour of the joint management councils and gave a report in May 1957. The
recommendations were also discussed at a seminar on Labour Management Co-operation
in New Delhi in 1958 which gave a Model Agreement between management and labour
for the establishment of joint management council for three important functions. First to
fulfill its function as an advisory body. Second to receive information. Third to flilfill
administrative responsibility.

The Third Five Year Plan also gave importance to Workers Participation for the
establishment of industrial democracy.

The Fourth Five Year Plan urged the extension of workers participation to public sector
undertakings and emphasized its importance as an essential fimctional link in the
development of industrial relations.

SACHAR COMMITTEE ON WORKERS PARTICIPATION

In June 1977 a high powered committee was set up by Government of India under the
chairmanship of Rajinder Sachar. The committee was set up to suggest measures by
which workers participation in the share capital and management of companies can be
brought about. The committee submitted its report on August 1978.

The main recommendations of the committee were,

1. Participation shall be limited to companies which employ 1000 or more workers
(excluding casual and badli workers).
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2. The participation at the Board level should be introduced if atleast 51% of the
workers vote in favour of such participation. However any company can voluntarily
introduce this participation scheme.

3. The Worker Directors will be elected by the workers through secret ballot at the
companies premises.

4. The Workers Director must be from amongst the workers employed by the company
and not an outsider.

5. For the success of this scheme training is a must and it shall be the responsibility of
the government to organize training programmes.

6. The pressure of Workers Directors on Board would not lead to any breach in the
confidentiality of the information.

7. The committee did not favour a two-tier representation that is Supervisory Board and
the Smaller Management Board

VARMA COMMITTEE ON WORKERS PARTICIPATION IN INDUSTRY

The Janta Government set up a committee in September 1977 under the chairmanship of
Ravindra Varma the then Union Minister for Labour. The report of the committee was
submitted in 1979 and the important recommendations were;
a) A three tier system of participation. At the shop floor, plant level and corporate or
board level should be adopted.
b) Legislation on workers participation covering all undertakings employing 500 or
more workers, whether public or private should be introduced.
c) There should be provisions for extending the scheme to units employing atleast 100
workers.
d) The representatives for the purpose of participation should be elected by secret ballot.
e) Not less than 10% of all new shares to be issued in future by a company should be
reserved exclusively for the workers of the company.
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THE SIXTH PLAN

The Sixth Plan was also in favour of workers participation in management. It stated that
workers participation in management should be an integral part of the industrial relations
system. Workers Participation should transform the attitude of employers and workers
and establish a co-operative culture and a stable industrial base. It is necessary to provide
training facilities to workers and managerial personnel so as to motivate them in making
the scheme of workers participation a success.

THE PARTICIPATION OF WORKERS IN MANAGEMENT BILL 1990

A proposal for formulating a statute on workers participation in management was
prepared by the government. The proposal took the form of a bill known as “Participation
of Workers in Management Bill 1990” which was introduced in the Rajya Sabha on 30*^
May 1990. The bill provided meaningful participation of workers in management from
shop floor to the board level in all industrial establishments defined under Industrial
Disputes Act 1947. This bill of 1990 was more statutory in nature and aimed at legislative
backing.

WORKING OF SCHEMES IN INDIAN INDUSTRIES

In India a few public undertakings have introduced the scheme on experimental basis. A
great enthusiasm has been shown by the banking industry. One director on the Board of
each nationalized bank is appointed by the Central Government from among the
employees of that bank, who is a worker and is chosen out of a panel of three employees
furnished to the government by the representative union within the prescribed period.
Workers’ representatives have been appointed on the Boards of Management of a few
public undertakings on a trial basis in Hindustan Antibiotics Ltd., the Hindustan Organic
Chemicals Ltd., the National Coal Mines Development Corporation has always had a
nominated workers’ representatives on the board. In the Port Trusts, there are two
workers’ representatives as Trustees or Commissioners, while on the Dook Labour
Board, the number of workers representatives is more. BHEL, National News Print and
Papers Mill (Gujarat, National Textile Mills - South Maharashtra, West Bengal, Assam,
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Bihar and Orissa), and the Rashtriya Chemicals and Fertilizer Ltd., have trade union
leaders on the Boards of Directors of these undertakings.

Due to lack of proper research it is difficult to comment. In the absence of healthy labour
management relations, schemes such as the Joint Management Councils, Work Councils
and Shops Councils have failed miserably, it is futile to think of the scheme for the
representation of workers on the Board of Management of an enterprise which needs
more participation. A study of the scheme in the nationalized banks conducted by the
National Labour Institute has shown that it has not succeeded in fostering a congenial
relationship based on mutual trust, respect, understanding and co-operation.

EVALUATION OF WORKERS’ PARTICIPATION IN MANAGEMENT

SCHEME
In India though the concept of participative management is supported in principle by all
the parties - government, employees and employers. From time to time, the government
has come out with a variety of schemes which best serve the national interests; but it is
disheartening to note that all the schemes have failed miserably.

“The workers” representatives are more concerned with the enlargement of their
amenities and facilities. Many factors that are responsible to the failure of the scheme as
under
1. Failure to imbibe the spirit of participation by the parties: One of the major
factors responsible for its failure is the inability of the parties to imbibe the spirit of
participation. The employer looks upon bipartite bodies the shop council, plant
council and joint management councils as substitute for trade unions, while
employees consider it as their rival. The attitude has generated hostility, apathy, and
at times even jealously, among them, with the result that the spirit of participation has
suffered death ab initio.
2. Ideological Differences between Employees and Employers Regarding the
Degree of Participation: There is basic difference between employees and
employers regarding the level of participation by workers. The workers’ participation
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at the Board level should be introduced gradually in stages, while the employees feel
that the scheme should be simultaneously introduced at all levels. The various
schemes have been accepted but not whole heartedly.
3. More number of Participative Forms: The existence of many joint bodies - the
works committee, joint-management council, shop council, unit council, plant
councils, canteen committee, safety committee, suggestion committee, etc..., each
with an ill defined role and fiinctions. It has many times created confLision,
duplication of efforts and resulted in a waste of time and energy. The resultant effect
has been the improper functioning of the scheme.
4. Unhappy Industrial Relations: The economic history of the country has shown that
the industrial climate has not been free from labour unrest. The government has
imposed participative schemes on industries in such a climate when, its out come has
been a total failure.
5. Weak Trade Unionism: Compared to strong trade unionism in developed countries
like the USA, UK, Germany, .Tapan etc., the trade union movement in India is
fragmented, poorly organized, riven by intense inter-union rivalry, and run by various
political philosophies. In such a state of affairs, it is fijtile to think of effective
workers’ participation in management through their own elected representatives.
6. Workers illiteracy: The workers’ representatives on various participative bodies are
by and large, illiterate. In the absence of adequate knowledge on their part of the
concept, rationale and benefit of the participative schemes, they cannot actively
participate meaningfiilly in their working. The result is that either they fail to arrive at
any decision or bank on outsiders for guidance who invariably persuade them not to
except that forum to solve their problems. This fact is reflected in workers’ inability
to accept the scheme.
7. Delays in the implementation of the decisions of participative bodies: One of the
major difficulties in the effective working of the participative scheme is that there are
tremendous delays in the implementation of the decision taken by the various
participative forums. This many times generates apathy or dissatisfaction and
frustration among the workers. This leads to their loss interest in the participative
scheme.
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8. Non Cooperative attitude of working class: The litigation minded workers’

representatives on the various participative forums many times raise those issues
which are beyond the scope of those forums or bodies. This attitude tempts employers
not to use the schemes while dealing with workers’ problems. Hence this fact, has had
a dampening effect on the working of the schemes. If the employee show non­
cooperation the employer’s also behave in the same fashion and in the process the
scheme fails to show results.

SUGGESTIONS FOR EFFECTIVE WORKING OF THE SCHEME

The following suggestions can be made for effective working of the workers participation
in management.
1. There must be total identity of approach on the part of both the parties to the working
of schemes at different levels. There must be complete agreement on the manner in
which the various participative schemes should function. Once the areas are clearly
spelt out the side-tracking of the important questions is avoided and the scheme can
yield desirable results.
2. The work environment should be congenial enough to motivate workers to give
whole-hearted co-operation with a view to ensuring its efficient operation. An
environment of industrial conflicts flowing from bad interpersonal relations will
generate frustration and alienation among workers which will have dampening
consequences on the working of scheme. Therefore, efforts should be taken to
cultivate a healthy work environment.
3. There should be publicity given to the workers participation so that the idea of
participation may find its root in the minds of these who are to implement the scheme.
Necessary lectures, discussions, film, show, conferences, seminars and other methods
of propaganda may be employed profitably to create enthusiasm about the scheme
among the management personnel as well as the workers.
4. Both the workers and management should have complete faith in the efficacy of the
scheme and should pool their talents and resources, and demonstrate their will to
work for the achieving of their goals.
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5. The participation should be real. The issues related to major strategies, product
diversification, the evaluation of costs, the human resources development and the
expansion of markets should also be brought under the jurisdiction of the
participating bodies. These bodies should meet frequently and their decisions should
be strictly adhered to and implemented in time.
6. The system of participation must be complementary to the collective bargaining
process.
7. The form, coverage, extent and levels of participation should be in the interest of the
parties concerned.
8. The objective to be achieved should not be unrealistically high, vague or ambiguous
but be achievable, clear and taught to all participants.
9. The participative schemes should be evolutionary: Therefore, to begin with, each
should be introduced at the shop floor and plant levels. Till these schemes get going
and become successful the scheme of workers’ involvement at the Board level should
be avoided.
10. For the effectiveness of workers participation scheme, participation must be based on
mutual trust and confidence. Hence attempts to enforce it by law or compulsion
would defeat its basic purpose.
11. The programmes for training and education should be developed comprehensively for
this purpose, “labour education should be concerned with not the head alone, not the
heart alone, not the hands alone, but with all the three, it should make workers think,
feel and act.” Labour is to be educated for enabling them to think, clearly, rationally
and logically, to enable them to feel deeply and emotionally, and to act in a
responsible way. The management at different levels is also required to be trained and
oriented to give it a fresh thinking on the issues concerned.
12. Development of trade union on proper lines: The trade union movement should be
developed on sound lines, so that the workers may enjoy real involvement in the
different participative forums. By legislative means the proliferation of unions in
industries should be restricted.
13. As distrust and suspension, may create obstacle in the effective working of the
participative scheme, will go by the board.
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14. There must be a free flow of information between labour and management throughout
the enterprise. This will help both labour and management to work co-operatively and
constructively, in attaining the goals of the enterprise.
15. The decision taken at different participatory forums must be sincerely done in a
stipulated period of time so as to get faith in the utility of the scheme.
16. The management should design a proper system so that the effectiveness of the
schemes may be assessed periodically, and, if required, the changes may be made to
make the scheme more advantageous for all the parties.

CONCLUSION
The scheme of workers’ participation in management although has not indicated proper
results, it should be made to work at least in increasing the production and productivity of
labour by giving the workers a warm feeling that the worker is an integral and important
part of the organisation and so creating a climate in which he may get proper
opportunities to show his value in contributing his share to the production targets. Joint
consultation should form a part of labour management decisions on important issues
affecting production as well as the very working lives of the employees. Management
should develop a constructive attitude and should regard trade unions not as an obstacle
to be overcome but as very valuable and powerflil instrument which, if properly handled,
it increase the production and productivity. Both employers and unions should
continuously make the experiment in proper spirit. The government should take
responsibility for the provision of a satisfactorily workers’ education programme so that
they can be equipped properly for their tasks. The scheme has bright prospects.

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