INDUSTRIAL RELATIONS

(COM18304CR)
UNIT- III (A)
WORKERS PARTICIPATION IN MANAGEMENT

MEANING & FEATURES

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 increases their involvement in the
affairs of the organization.

Workers’ participation in management means giving scope for workers

to influence the managerial decision-making process at different levels
by various forms in the organization.

Workers’ participation in management is a system of communication and

consultation, either formal or informal, by which employees of an
organization are kept informed about the affairs of an undertaking and
through which they express their opinion and contribute to management
decisions.

 The principal forms of workers’ participation are information

sharing, joint consultation, suggestion schemes, etc.
 Redistribution of power between management and workers in the
direction of industrial democracy

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OBJECTIVES OF WORKERS’ PARTICIPATION IN MANAGEMENT

 Increasing productivity for the general benefit of the enterprise,

the employees and the community;
 Giving employees a better understanding of their role in the
working of the industry & of the production process; and
 Satisfying the worker’s urge for self-expression, thus leading to
industrial peace, better relations and increased co-operation.

IMPORTANCE OF WORKERS’ PARTICIPATION IN MANAGEMENT

 Mutual Understanding
 Higher Productivity
 Industrial Harmony
 Industrial Democracy (right of self expression and opportunity to
communicate views on policies, worker as responsible partner in
decision making)
 Less Resistance to change
 Creativity and Innovation

WORKERS PARTICIPATION IN MANAGEMENT IN INDIA

 Indirect Representative

Introduced by govt. through legal provisions or notifications e.g. Works

Committee, Joint Management Council, Worker’s director etc.

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  Direct Participation

Opportunity for each and every worker to participate in management

through variety of mechanisms like suggestion schemes, small group
activity, quality circles etc.

PARTICIPATIVE FORUMS IN INDIA

 Works committees;
 Joint mgt. Councils;
 Joint councils;
 Unit councils;
 Plant councils;
 Shop councils;
 Workers’ representative on the board of mgt; and
 Workers’ participation in share capital.

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