Introduction

Workers participation in management is an essential

ingredient of industrial democracy. The concept of

workers participation in management is based on
Human Relations approach to management which
brought about new set of values to labour and
management.
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.

Definitions
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.
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. 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.

Scope
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 workers 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
To raise the level of motivation of workers by closer

involvement.
It is an opportunity for expression and to provide a
sense of importance to the workers.
It forges ties of understanding, leading to better effort
and harmony.
It is panacea for solving problem related to IR

Levels of Participation
Informative participation: It refers to sharing of

information with workers regarding economic position

of the firms, state of the market, production and sales
programme, work methods, balance sheet, expansion
plans, etc. Here the workers have no right to scrutinize
the information provided by management.
Consultative participation: This involves a higher
degree of sharing of views of the workers and giving
them a chance to express their opinions on various
issues concerning work, workplace, working
conditions, market standing, financial status, etc. Here
the joint council of workers and management works as
an advisory body only. Management may or may not
accept the suggestions

Levels of Participation
Associative participation: Here the council is not

purely advisory. The management is under a moral

obligation to accept and implement the unanimous
decisions of the council.
Administrative participation: Here there is a greater
degree of sharing authority and responsibility of
managerial work, allowing workers a little more
autonomy in exercising
administrative and
supervisory powers in respect of welfare, safety,
benefits, rewards, etc.
Decisive participation: This is the highest form of
participation where decisions are taken jointly on
matters relating to production, safety, welfare, etc

Types/Models of Participation
Participation at the Board level: The Board of Directors is the

apex body in the administration of a corporate establishment. A

representation on the Board would, it is believed usher in
industrial democracy, ensure improved employer-employee
relations and guarantee better productivity. This model plays a
useful role in safeguarding the interests of workers.

Participation through Ownership: Workers may become

involved in industries by making them shareholders of the

company. This may be done by inducing them to buy equity
shares.

Participation through Complete control: Workers acquire

complete control of the management through elected boards.

The system of self-management in Yugoslavia is based on this
concept. It gives complete control to workers to manage directly
all aspects of industries through their representatives.

Types/Models of Participation
Participation through Works Councils: These are exclusive

bodies of employees assigned with different functions in the

management of an enterprise ranging from eliciting information
on the managements intentions to a full share in decision
making.

Participation through Joint Councils

and Committees:
Joint councils are bodies comprising representatives of
employees and employers. The functions of these bodies may
range from decision making on some issues, to merely advising
the management as consultative bodies

Participation through Collective Bargaining: Collective

Bargaining results in collective agreements which lay down

certain rules and conditions of service in an establishment e.g in
USA.

Types/Models of Participation
Participation through Job Enlargement and Job

Enrichment: Job enlargement and job enrichment do

provide for worker participation because they offer
freedom and scope to workers to use their judgement.

Participation through Suggestion Schemes: Employees

views on such matters as machine utilization waste

management, energy conservation and safety measures are
invited and reward is given for the best suggestion. This
procedure enables the management to arouse and maintain
the employees interests in the problems of their concern.

Participation through Quality Circles: A QC consists of

seven to ten people from the same work area who meet
regularly to define, analyse and solve quality and related
problems in their area.

Types/Models of Participation
Empowered Teams: Empowering refers to passing an

authority and responsibility. Empowered teams (self

directed teams) have the following distinct features:
1.They are empowered to share various management and
leadership functions.
2.The plan, control and improve their own work processes
3. They set their own goals and inspect their own work

Total Quality Management: TQM is classified as

participative method because every employee in the

organization is involved and is expected to take
responsibility for improving quality

Financial Participation

Forms of Workers Participation in

India
At present ,the following workers participative forums are
prevalent in India :
Works committees: These committees have been
regarded as the most effective social institution of
industrial democracy and as a statutory body established
within the industrial units with representatives of the
management and workmen, for preventing and settling
industrial disputes at the unit level. The works committee
can be formed by any enterprise employing 100 or more
workers.
Joint management councils: These committees give
labour a greater sense of participation and infuse a spirit of
co-operation between the two parties without encroaching

Forms of Workers Participation in

India
Joint councils: At every division/region/zonal level or may

be considered necessary in a particular branch of an

organisation/service employing 100 or more workers, there
shall be a joint council. The tenure of the council shall be
two years. CEO of the organisation or of its
divisional/regional/zonal branch as the case may be shall
be the chairman of the joint council. Council shall meet at
least once in a quarter.
Unit councils: Encouraged by the success of the joint
councils in manufacturing and mining units, a new scheme
of workers participation in commercial and service
organization in the public sector having large scale public
dealing was announced on 5th Jan. 1977. The scheme
envisaged the setting up of unit councils in units
employing at 100 persons.

Forms of Workers Participation in

India
Plant councils: The plant council is formed on the

recommendations of the second meeting of the Group on

Labour at New Delhi on 23rd Sept. 1985.There will one plant
council for the whole unit. Each council should consist of
not less than 6 and not more than 18 members. Its tenure
shall be for a period of three years
Shop councils: In every industrial unit employing 500 or
more workers, the employer shall constitute a shop council
for each department or shop. Each council shall consist of
an equal number of representatives of employers and
workers. The number of members may not exceed 12. the
council shall meet at least once a month

Forms of Workers Participation in

India
Workers

representation on the Board of

management: On the recommendations of the
Administrative Reforms Commission made in its
report on public sector undertakings, the Govt. of
India accepted, in principle, that representatives of
workers should be taken on the Board of Directors of
public sector enterprises

Workers participation in share capital

Evaluation of WPM
The progress of working of the scheme was reviewed by
tripartite committee on workers participation in
management in its meeting held on Sept. 20 1994. In India
though the concept of participative management is
supported in principle by all the parties-Govt., employees
and employers- no serious interest has been shown in it
except of course by the Govt. A variety of factors that have
contributed to the failure of the scheme have been
discussed here:
Ideological difference between employees and employers
regarding the degrees of participation.
Failure to imbibe the spirit of participation by the parties.
Multiplicity of participative forms.

Evaluation of WPM
Lack of strong trade unionism.
Unhappy industrial relations.

Illiteracy of workers.
Non- co-operative attitude of the working class
Delays in the implementation of the decisions of the

participative bodies.
Thus workers participation in management in India
has yet to succeed. It can be done by educating the
workers, creating an environment in the organization
for coordination of workers and management.