Workers participation in

management/ Labour
management Cooperation

Presented By:- Pratibha Yadav

Ishu sharma
Pranshi Pipronia
Aditi Tiwari
Palak Dubey
Worker’s participation in
management
Worker’s participation is a system
where workers and management share
important information with each other
and participate in decision taking.
Definition
“Better participation and greater responsibility
in the decision making process on the part of
general workers would perhaps tend to develop
in them organizational loyalty, confidence, trust,
favorable attitude towards supervisors, and a
sense of involvement in the organization.
Schemes of worker’s participation in
management among other measures or
industrial reform, are expected to democratize
the industrial milieu, and ensure egalitarianism
in the process.”
G.D.H. Cole
Features of WPM
 Formal involvement of members
 Participation in decision making
 Consequence sharing
 Application of upward control
 Joint and continuous process
Objectives of WPM
 Greater employee satisfaction
 Greater responsibility
 Mutual cooperation
 Establishing democracy
 Developing an effective
communication system
 Facilitating changes
Levels of WPM
 Lowest level of participative
management
 Medium level of participative
management
 Highest level of participative
management
Achieving WPM
Workers Participation in
Management in India
 The workers participation in management is
not new even though it got encouragement
only after independence .
 In 1920 Mahatma Gandhi , observed
“Employees should not regard themselves as
sole owners of mills and factories of which
they may be legal owners. They should
regard themselves trustees.

 FORMS OF WPM
 In India workers participation has been
introduced in three forms :

1. The Workers Committees

2. Joint Management Councils
3. Shop Councils
4. Joint Councils
Works Committees
 The first labour management association
started in 1947 with the passing Industrial
Disputes Act.
 The Act provides that in the case of any
industrial establishment in which 100 or more
workers are employed on any day in the
preceding twelve months, the appropriate
government may be general or social order
require
 The employees to constitute in the prescribed
manner a Works Committee in the
establishment.
 The committee was expected to discuss
matters of common interest and to maintain
cordial relations between workers and
employees.
 The response to works committees was
encouraging in the beginning.
 But , in spite of their large number the
experience of these committees was not
very fruitful.
Reasons for failure of works
committees
 The workers were not satisfied with the
functions assigned to the committees.
 They tendency of employers taking some
matters to these committees just to by pass
trade unions created a suspicion in the minds
of workers leaders.
 Inter unions rivalries were also responsible
for the failure of these committees.
 The casual approach of employees
towards these committees made them
ineffective .
 The recommendations of these
committees are advisory in nature.
 The workers show less interest in the
working of these committees.
Joint Management Councils
 Joint Management council was a voluntary
body.
 Its introduction was left solely to the
discretion of employers and employees.
 These councils will consist of equal number of
representation of workers and management
will not exceed twelve.
Objectives of JMC
 Promoting cordial relations between management
and workers
 Developing understanding and trust between them
 Augmenting productivity substantially
 Securing better welfare and other facilities
 Training them to understand and share the
responsibility
The councils functions were
divided as:-
 Information sharing.
 Consultative.

 Administrative.

The council has the right to receive

information , discuss and give suggestions
on general economic situation, market
production, general running of the
unit,etc.
The councils suffered the
following problems:
 The workers representatives were not
satisfied with their role in councils.
 Management are not prepared to supply
sufficient information to councils .
 The trade union leaders feel that council
would weaken their hold over workers .
 The absence of representative unions made it
difficult for the councils to work smoothly.
Shop Councils and Joint
Councils
 A new scheme for workers participation in
management was adopted in october 1975.
 The scheme was voluntary in nature.
 It covered all manufacturing and mining
industries employing 500 or more persons.
 The scheme provided for setting up of
shops councils at the plant level.
Shop Councils
 There will be a shop for each department or one
council for more departments considering the
number of workers employed there.
 The representatives of employees will be nominated
by the management and must be from the unit
concerned.
 The number of members in the council may be
decided by management in Consultation with
recognised unions.
 All decisions of the council must be based on
consensus but not by voting.
 Management has to implement the decisions
within one month.
 The term of shop council will be two years.
 The chairman of the council will be the
nominee of management and vice-chairman
shall be elected by working members amongst
themselves.
Functions of Shop Councils
are:-
 Assist management in achieving
monthly/yearly targets.
 Elimination of wastage and optimum
utilization of machine capacity and manpower.
 To study the causes of absenteeism in the
department and suggest measures to
eliminate it.
 Safety measures.
 Assistance in maintaining general discipline in
the department.
 Physical conditions of work such as lighting,
ventilation ,noise, dust,etc.reduction of fatigue.
 Welfare measures to be adopted for sufficient
running of department/shop.
 Ensure proper communication between
management and workers reporting the
Joint Councils
 There was to be a joint council for
every unit employing 500 or more
workers.
Features :-
 The members of the council must be
actually engaged in the unit.
 The term of the council will be two years.
 The chief executive of the unit will be the
chairman of and vice-chairman will be
nominated by worker members.
 It shall meet at least once in a quarter.
 The decisions of the council will be
based on consensus and not on voting.
 The decisions will be binding on both
parties and will be implemented within
one month.
Functions:-
 Optimum production , efficiency and
function of productivity norms of man
and machine for the unit as a whole.
 Functions of a shop council which have a
bearing on another shop or the unit as a
whole.
 Matters remaining unresolved by shop
council.
 The development of skill of workmen and
adequate facilities for training.
 Preparation of schedules of working hours
and of holidays.
 Awarding of rewards for valuables and
creative suggestions received from workers.
 Optimum use of raw materials and quality
of finished products.
Significance of WPM
 Increase in productivity and
performance.
 Improves employee involvement and
participation.
 Better workforce flexibility.
 Promotes cordiality in industrial
relations.
 Establishes goodwill and public image.
Hurdles to an effective WPM
 Orthodox attitude of the management.
 Role ambiguity and conflict.
 Absence of mutual faith.
 Non-implementation of the decisions of
the committee.
 Absence of strong unions.
 Lack of follow-up.
Reasons for the failure:-
 The management have been o the view that
workers are not competent to take decisions.
 It was difficult for workers representatives to
play the role of management and union
leaders.
 The scheme of workers participation was
inspired by the government without any
initiative from management.

 The active association of union leaders with political
parties was only responsible for the failure of this
scheme.
 The workers participation is mainly emphasized at
top level management.
 The workers in India do not feel motivated to
participate in decision making because their lower
needs too
 Remain unsatisfied.
Employee Empowerment
Employee empowerment- meaning
Employee empowerment is a
technique adopted by organizations
to enable the employees to take
independent decisions about the
different aspects of their jobs.
 Steps in employee
empowerment (contd.)
Thank You