WORKER

PARTICIPATION IN
MANAGEMENT
COMPILED BY:
I. TANIYA TANDON
II.KIRTI KUMARI
 INTRODUCTION
 The concept of worker participation in management
crystallizes the concept of Industrial democracy, and
indicates an attempt on the part of an employer to build
his employees into a team which work towards the
realization of a common objective.

 According to 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.

 It is also defined as a system of communication and

consultation either formal or informal by which
employees of an organization are kept informed about
the affairs of the undertaking and through which express
 OBJECTIVES
Aninstrument for increasing the efficiency of enterprises and establishing
harmonious relations

Ameans for achieving industrial peace and harmony which leads to higher
productivity and increased production

Anideological way of developing self-management and promoting industrial

democracy

To improve the quality of working life (QWL) by allowing the workers greater
influence and involvement in work and satisfaction obtained from work

Tosecure the mutual co-operation of employees and employers in achieving

industrial peace; greater efficiency and productivity in the interest of the
enterprise, the workers, the consumers and the nation
 
 SCOPE
1. Information Sharing
Share the information! That says it all. According to this view, participation takes place when the management
solicits the opinion of workers before taking a decision. The management ultimately takes the decision.
Workers are given a say or an opportunity to influence decisions, they play a passive role in the process of
decision-making, but have no final say in the matter.

2. Sharing Decision-Making

This school holds that participation of an individual in something occurs when he actively takes part. The focus
here is that there must exist taking part actively. Workers sit with the representatives of management to take
important decisions particularly on matters affecting the workers. Workers may be members of Works
Committees, Joint Management Council, etc. along with the representatives of management. The decisions are
taken through mutual discussions between the representatives of the workers and those of the management.

3. Self-control.
The essential feature of self-control (or management) is that management and workers are not
visualised as two distinct groups but as active members with equal voting rights. Participation in
Yugoslavia is an example of self-control.
 SIGNIFIGANCE
1.Higher Productivity:
The increased productivity is possible only when there exists fullest co-operation between labour and
management. It has been found that poor labour management relations do not encourage the workers to
contribute anything more than the minimum desirable to retain their jobs. Thus participation of workers
in management is essential to increase industrial productivity.
2.Greater Commitment:
An important prerequisite for forging greater individual commitment is the individual’s involvement
and opportunity to express himself. Participation allows individuals to express themselves at the work
place rather than being absorbed into a complex system of rules, procedures and systems. If an
individual knows that he can express his opinion and ideas, a personal sense of gratification and
involvement takes place within him. I am sure you will agree that participation increases the level of
commitment and the employees start relating to the organisation.
3.Reduced Industrial Unrest.
Industrial conflict is a struggle between two organised groups, which are motivated by the belief that
their respective interests are endangered by the self-interested behaviour of the other. Participation cuts
at the very root of industrial conflict. It tries to remove or at least minimise the diverse and conflicting
interests between the parties, by substituting it with cooperation, homogeneity and common interests.
Both sides are integrated and decision arrived at are mutual rather than individual.
 COTD…
4. Improved Decisions.
I am sure that you will agree that communication is never a one way
process, Also note that it is seldom, if ever, possible for managers to
have knowledge of all alternatives and all consequences related to the
decisions which they must make. Because of the existence of barriers to
the upward flow of information in most enterprises, much valuable
information possessed by subordinates never reaches their managers.
Participation tends to break down the barriers, and makes the
information available to managers. To the extent such information
alters the decisions, the quality of decisions is improved.
5. Human Resource Development.
Participation provides education to workers in the management of
industry. It fosters initiative and creativity among them. It develops a
sense of responsibility. Informal leaders get an opportunity to reinforce
their position and status by playing an active role in decision-making
and by inducing the members of the group to abide by them.
 ESSENTIAL CONDITIONS
 The attitude and outlook of the parties should be enlightened and
impartial
 Both parties should have a genuine faith in the system and in each
other and be willing to work together.
 Participation should be real. The issues related to increase in
production and productivity, evaluation of costs, development of
personnel, and expansion of markets should also be brought under
the jurisdiction of the participating bodies.
 Participation must work as complementary body to help collective
bargaining, which creates conditions of work and also creates legal
relations.
 There should be a strong trade union, which has learnt the virtues of
unit and self-reliance sothat they may effectively take part in
collective bargaining or participation
 Programs for training and education should bedeveloped
comprehensively
 PRE-REQUISITES
 Effective system of communication

 Should not adversely affect the status or authority

 Financial cost of participation

 The overall climate

 Sufficient time to participate

 Subject of participation
 WAYS
1. Board level participation
2. Ownership participation
3. Complete control
4. Staff or work councils
5. Joint councils and committees
6. Collective Bargaining
7. Job enlargement and enrichment
8. Suggestion schemes
9. Quality circles
10. Empowered teams
11. Total Quality Management
12. Financial participation
 COLLECTIVE BARGAINING
 Collective bargaining is process of joint
decision making and basically represents a
democratic way of life in industry. It is the
process of negotiation between firm’s and
workers’ representatives for the purpose of
establishing mutually agreeable conditions of
employment. It is a technique adopted by two
parties to reach an understanding acceptable
to both through the process of discussion
and negotiation.
 IMPORTANCE
 Collective bargaining develops a sense of self respect and responsibility among
the employees.

 Collective bargaining increases the morale and productivity of employees.

 It helps in securing a prompt and fair settlement of grievances. It provides a

flexible means for the adjustment of wages and employment conditions to
economic and technological changes in the industry, as a result of which the
chances for conflicts are reduced.

 Collective bargaining tends to promote a sense of job security among employees

and thereby tends to reduce the cost of labor turnover to management.

 Collective bargaining leads to industrial peace in the country

 Collective bargaining plays a vital role in settling and preventing industrial

disputes

 The discrimination and exploitation of workers is constantly being checked.

 JMCs
 The 3rd Plan proposed as a major programme
for its five year period “the progressive
extension of the scheme of JMC to more
industries & units so that, in course of a few
years, it may become a normal feature of the
industrial system.”
 The 3rd Plan document went on to say “for the
peaceful evolution of the economic system on
democratic basis, it is essential that workers’
participation would be accepted as a
fundamental principle & urgent need.”
 It added JMCs should be set up in all the
establishments as well as private sectors in
which conditions favourable to the success of
the scheme exists.
 JMCs
 The draft plan of 1966-71 assigned the
following functions to Joint councils:
 Matters in which responsibility is entrusted to
them, specially administration of welfare
measures, supervision of safety measures,
operation of vocational training & apprenticeship
schemes, preparation of schedules of working
hours & breaks & of holidays & payments of
rewards, for valuable suggestions.
 Matters in which workers have a right to receive
information, discuss and offer suggestions.
 Matters in which they expect to be consulted.

 Thus, the area of operation of JMC was not

clearly laid down.
 FUNCTIONS OF JMCs
 The accepted functions of JMC can be summed
up under 3 broad heads:
 Consultation
 Information
 Administration

 It can be consulted for various matters & given

information of general economic situation of the
undertaking, production & sales programme etc.

 The administrative responsibility to be entrusted

include supervision of welfare measures & safety
measures, the operation of vocational training &
apprenticeship schemes, preparation of
schedules of working hours etc.
 WORKS COMMITTEES
 The Bombay Industrial Relations Act, 1946 made
a statutory provision for establishment of joint
committees at the plant level to maintain regular
channels of communication between employers &
employees.
 The Industrial Disputes Act, 1947 envisages the

creation of Works Committee in each unit

consisting of representatives of workmen &
employers with more or less equal
representation.
 The scope of Works committee is very restricted.

But in some cases, these committees deal

production problems – a role assigned to JMCs in
the draft model agreement.
 FAILURES OF WORKS COMMITTEES
 National Commission on Labour found that Works Committees
have not been effective.

 State Govts have expressed the views that the advisory nature of
the recommendations, vagueness regarding their exact scope &
functions, inter-union rivalries, union opposition & reluctance of
employers to utilize such media have rendered Works
Committees ineffective.

 The employers’ associations have attributed the failure to

factors like:
1. Inter-union rivalries
2. Union antipathy
3. Attitude of members (workers’ wing) in trying to raise in the
committee discussion, on extraneous issues.

 According to the unions, conflict between union jurisdiction &

the jurisdiction of the works committees & the unhelpful
attitudes of the employers have generally led to their failure.
THANK
YOU