Industrial Management and Labor Relations

Chapter: 05. Workers Participation

Workers Participation
Worker participation refers to any process in the company that allows workers to exert influence
over their work or their working conditions. Workers participation is the involvement of worker
in decision making and other activities for ensuring the proper utilization of organizational
resources. 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 negations, to more institutionalized forms such as the presence of
workers’ member on management or supervisory board or even management by workers
themselves.

Objectives of Workers Participation

Workers participation is encouraged with a view to achieve some objectives. If all these objectives
are fulfilled, it can be said that participation has become successful. The following are some of the
points of objectives of participation:

1. To place greater voice in decision: The first objective of workers participation is to place much
more big voice in the decision making process. Thus autocratic decision making efforts might be
prohibited.

2. To increase productivity: Through effective workers participation, productivity or

serviceability of any organization can be increased. But the condition is that the other facilities
must be available.

3. To enhance the dignity of workers: Dignity of workers does not hamper the goodwill of the
organization, rather in increases the goodwill and attraction of outside skilled workers. Effective
participation may be a successful weapon for the purpose.

4. To change behavior: Through objective participation, behavioral pattern of individual workers

as well as group behavior may be changed. During participation the workers come to know how
to behave with fellow workers.

5. To uphold industrial democracy: Workers participation can take another change to uphold
industrial democracy. They can find the ways and techniques of industrial democracy and make
the whole system democratic.
6. To improve quality of work life: Through workers participation, management can be properly
informed about the need for improving the quality of working life. Not only the, the means of
improvement can also be gained.

7. To ensure mutual co-operation: By policy if participation is encouraged, that can help to

ensure co-operation among the workers. They can also resolve any sort of mental distance through
participation.

8. To use team spirit

Nobody can work alone and does not get moral. Effective participation can increase the favorable
temperament and thus it can ensure team spirit among the workers.

Forms of Participation in Management

With the help of a lot of ways worker can participate in management. Different forms of
participation are available in the industrial organizations. Some important forms, however, are
discussed below:
1. Collective Bargaining: collective bargaining results in collective agreements which lay down
certain rules and conditions of service in an establishment. Such agreements are normally binding
on the parties. Theoretically, collective bargaining is based on the principle of balance of power,
but, in actual practice, each party tries to outbid the other and get maximum advantage by using,
if necessary, threats and counter threats like; strikes, lockouts and other direct actions. Joint
consultation, on the other hand, is a particular technique which is intended to achieve a greater
degree of harmony and cooperation by emphasizing matters of common interest. Workers prefer
to use the instrument of collective bargaining rather than ask for a share in management. Workers'
participation in the USA has been ensued almost exclusively by means of collective agreements
and their application and interpretation rather than by way of labor representation in management.
2. Workers Councils: These are exclusive bodies of employees, assigned with different functions
in the management of an enterprise. In West Germany, the works councils have various decision
making functions. In some countries, their role is limited only to receiving information about the
enterprise.
3. Joint Management Councils and Committees: Mainly these bodies are consultative and
advisory, with decision-making being left to the top management. This system of participation is
prevalent in many countries, including Britain and India. As they are consultative and advisory,
neither the management nor the workers take them seriously.
4. Board Representation: The role of a worker representative in the board of directors is
essentially one of negotiating the worker's interest with the order members of the board. At times,
this may result in tension and friction inside the board room. The effectiveness of worker's
representative at the broad depend upon his ability to participate in decision-making, his
knowledge of the company affairs, his educational background, his level of understanding and also
on the number of worker representatives in the Board.
5. Workers Ownership of Enterprise: Social self-management in Yugoslavia is an example of
complete control of management by workers through an elected broad and workers council. Even
in such a system, there exist two distinct managerial and operative functions with different sets of
persons to perform them. Though workers have to option to influence all the decisions taken at the
top level, in actual practice, the board and top management team assume a fairly independent role
in taking major policy decisions for the enterprises, especially in economic matters.

Forces Affecting Workers Participation

There are some forces affecting participation. These forces either positively or negatively affect
the participation. Therefore, both the parties i.e., management and workers should be very careful
about these forces. Following are the forces influencing workers participation in the management.
1. Research results: Participation in research can ensure to get relevant information and get actual
position or productivity of an organization. The problem and solution can be cancelled from the
participation of the workers.
2. Pressure for productivity improvement: In the participation program management and
workers exchange their views about overall situation of the organization. Here management
encourages their workers for more productivity and improving quality of work and goods to
achieve goal of the organization.
3. Utilization of employee diversity: Every employee has diverse knowledge and experience. In
the participation program management can understand their employee behavior. So management
can utilize employee diversity in the organization.
4. Employee desires & expectations: Employees can express their desires and expectations to the
management in the participation program. If these expectations are fulfilled employees motivation
may enhance.
5. Ethical arguments: Employees must be careful about their argument. They should give ethical
argument to the management in the participation program.
These are the forces influencing workers participation in management. Positive forces help
employees to participate in the organization and increase their experience and their efficiency.
Role of Unions in Participation
In large organization, there are many workers. As all workers direct participation may hamper the
organization productivity, in this case their ideas, innovation, feelings about organization,
problems and possible solution etc. can be presented by the involvement of trade union. Trade
union ensures the participation of workers in the organization activities. The role of unions in
participation may be discussed in the following points:

1. Placing demands: the first role of unions in regard to participation is to place demands before
the management but before placing the demands the union leaders should consider the
responsibility of their demand.

2. Emphasizing welfare: employees want to get more reasonable welfare facilities. For the
consideration of management ability, union leaders should identify some reasonable welfare
facilities which may be covered.
3. Selected/Elected representative: At this stage union members may elect representative for
participation. For the purpose, they only choose the person who is reliable to them and who have
leadership quality.

4. Public disrepute: Union leaders, after placing the charter of demands, will bargain with
management. If necessary they will forgo some demands. Union leader and members should not
forget common people interest.

5. Unity may be strengthened: Unity is strength. Union leaders should show strong unity.
Otherwise management may not consider their cases. United effort makes any task easier than
isolated activities.

6. Mitigating misunderstanding: Misunderstanding may be reduced by mutual discussion and

faith on all parties. In this regard trade unions and management play important roles through
sharing the information, threats, opportunities, potentiality of the organization.

7. Favorable work environment: Trade union can make a good relation between workers and
management whose make the work environment favorable for both parties.

8. Rapid response to problems: Both parties of organization are trying to solve problems as
early as possible by giving actual information and ideas as they think that it is their organization.
From the above. We can say that union plays an important role in the participation process. Unions
make it easy, save time and ensure proper participation of workers.
Programs for Workers Participation
There is some common program for effective participation. There they include consultative
management, democratic management multiple management, self-managing teams, employee’s
ownership plans. Quality circles and quality management. These programs discuss in short in the
followings:
1. Consultative management: A consultative committee may be constituted with the participation
of union leaders and managers. This committee will suggest the top management regarding
organizational present state and potentiality. Management talking to the organization pupil about
productivity problems, required facilities work environment etc. for ensuring organizational
efficiency.
2. Democratic management: A very useful program is the formation of democratic management.
The system will discuss the issues time to time and place its report before the top management.
This type of management system can ensure the participation of employee’s decision process,
talking about rights and responsibilities, problems, solving these and good work environment.
3. Production committee: Production committee can contribute to report about the existing
production level and future trend. As management knows the latest position, they can take proper
action what will the inventory level, required raw materials, machinery needed, workforce
availability.
4. Suggestions program: Suggestion programs are formal plans invite individual employees to
recommend work improvements. It encourages employees to develop their innovative capacities
and give suggestion for effective and efficient utilization of resource.
5. Multiple management: This management is also known as middle management committee. In
1932, it was concept development and screening and development of skills. This is situation based
management system. This program uses democratic management, autonomous management and
free management system.
6. Employee ownership plans: Employee ownership of an industry emerges when employees
provide the capital to purchase control of existing operation. Management give attention to the
employees plans as they have greater contribution in the organization.
7. Quality Circles: These are voluntary groups that receive training in statistical techniques and
problem solving skill and then meet to produce ideas for improving productivity working
conditions.
8. Total Quality Management: TQM approach ensures the improvement of every employee in
the process of searching for continuous improvements of their operations.
In conclusion, effective worker participation depends on the above program.