INTRODUCTION:

This project report is on worker’s participation in management {WPM} at

Prem Tex Internationals. The concept of worker’s participation represents the popular theme
of the analysis. It refers to any arrangements which is designed to involve low cadre
employees (Workers) in the important decision making within the workplace. Worker’s
participation in management refers to the participation of non-managerial employees in the
decision-making process of the organisation.
Worker’s participation gives employees the mental and psychological
satisfaction and thereby increase their involvement in the affairs of the organization.
Employee participation is the process whereby employees are involved in decision making
processes, rather than simply acting on orders. Employee participation is part of a process of
empowerment in the workplace.
Within the last three decades in the realm of human resource management the
technique of the worker’s participation in management has been regarded as a powerful
behavioural tool for managing the industrial relation system.
It is an essential ingredient of industrial democracy. The concept of worker’s
participation in the management is based on Human Relations approach of Prem Tex
Internationals to Management which about a new set of values to labour and management.
Traditionally the concept of worker’s participation in management (WPM) refers to
participation of non-managerial employees in the decision-making process of the
organization.
WHAT IS WORKERS PARTICIPATION IN MANAGEMENT ;

The term participative management and worker’s participation in management

are the same. It is composed of two words:
(a) Participation and;
(b) Management.

(a) Participation: The participation is one’s own mental and emotional involvement in
decision making process for achieving organization goals and share responsibility. The
three important aspects of participation are:

1. A person’s self is involved rather than his skills.

2. It motivates person to contribute their own resources of initiative and creativity
towards the objective of the organisation.
3. It also encourages people to accept responsibility in their group activity.

(b) Management: It means to manage the affairs of the organisation in systematic way. It
involves looking after day to day work, deciding policy matter and implementing the
policy decision.
Worker’s participation in management means the workers are given a chance to share the
functions of the management in achieving the organisational goals of the undertaking.
PROJECT INTRODUCTION:
Worker’s participation in management is also known as the “Labour
participation” or “Employee Participation” in management. In Germany it is known as Co-
ordination. At the same time Yugoslavia, it is known as Self-management. The international
labour organisation has been encouraging member nations to promote the scheme of worker’s
participation in management.
Worker’s participation in management implies mental and emotional
involvement of workers in the management of enterprise it is considered as a mechanism
where workers have a say in the decision making.
Participative management represents industrial democracy in action and
workers and management should both be re-educated to play their roles as partners in the
process of production and put industrial democracy to work effectively.
Definition of worker’s participation in management :

According to Keith Davis, “Participation refers to the mental and emotional

involvement of a person in a group situation which encourages him to contribute to group
goals and share the responsibility of achievements”.
According to Walpole, “participation in management give the worker a sense
of importance, pride and accomplishment; it gives him the freedom of opportunity for self-
expression; a feeling of belongingness with the place of work and a sense of workmanship
and creativity”.
According to John Leitch, “the organisation of any factory or other business
institution into a little democratic state with a representative government which shall have
both the legislative and executive phases”.
According to Gregor (1960) “the worker participation consists basically in
creating opportunity under suitable conditions for people to influence decisions which affect
them. It is a special case of delegation in which the subordinate gain greater control, greater
freedom of choice with respect to bridging the communication gap between the management
and the workers. This serves to create a sense of belonging among the workers as well as a
conductive environment in which both the workers would voluntarily contribute to healthy
industrial relations.
According to the International institute for labour studies “Workers
participation in management is the participation resulting from practices which increase the
scope for employee’s share of influence in decision-making at different tiers of organizational
hierarchy with concomitant assumption of responsibility”.
In the words of 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”.
 In the same manner as political democracy has converted subjects into citizens
of the industrial world with a right to self-determination and self-government, that is
representative participation in making rules and enforcing them.
This is known as Worker’s participation in management, while the worker’s
participation in management means giving scope for workers to influence the managerial
decision-making process at different levels by various forms in the organisation. The
principal forms of worker’s participation are information are informing sharing, joint
consultation, suggestion schemes, etc.
OBJECTIVES:
For every management, participation of worker is more important to increase
the organization’s profit through their effective production process and their dedicative
services. The main objectives of worker’s participation in management include:
 To establish industrial democracy.
 To build the most dynamic Human Resources.
 To satisfy the worker’s social and esteem needs.
 To strengthen labour management co-operation and thus maintain industrial
peace and harmony.
 To promote increased productivity for the advantage of the organization,
workers and the society at large.
 Its psychological objective is to secure full recognition of the workers.
 To analyse about the various methods of worker’s participation in
management [WPM].
 To determine the criteria for the worker’s participation in the management.
 To analyse about the various results and effectiveness in regarding of workers
participation in management [WPM] to Prem Tex international.
 To determine the factors of workers participation in management.
 To analyse about the challenges faced by Prem Tex internationals for worker’s
participation in management.
 To analyse about the full concept of workers participation in management.
 To promote cordial relations.

Economic Social
Objective Objectives

Psychological

Objective
 1. Economic objective: The scheme of worker’s participation enhances economic
efficiency of the enterprise on account of the following reasons:

a. Workers can contribute ideas which can be useful to management.

b. Upward communication is essentials for proper decision making at the top.
c. Worker will accept decisions and work better if they participate in them.
d. It will contribute to industrial peace by fostering more co-operation among
workers and management and thus raise efficiency.

2. Psychological objective: It gives full recognition the human element in industry and
generates a greater interest in the operation of the undertaking. A sense of belonging
is developed, which in turn, results in higher efficiency.

3. Social objective: The concept of participation produces equal status between workers
and management through sharing of decision-making process which makes the
workers productive, creative and efficient. It also recognises the dignity of man a man
and also satisfy his urge for self-expression and makes our democracy functional.

 Democratic right to influence the managerial decisions.

 Raise worker’s level of motivation and commitment.
 Cross-fertilisation and speedy communication of ideas.
 Foster better co-operation between labour and management.

SCOPE:
The scope of worker’s involvement in managerial decision-making may extend to
social, economic and personnel decision making depending upon the requirements of the
organisation. Employee participation in decision-making process is beneficial. And the scope
of worker’s participation ranges over three main managerial decision-making stages. They
are:
 Social decision-making,
 Economic/Financial decision-making and
 Personnel decision-making.

Social decision-making:
It refers to employee involvement in decision making regarding hours of work, rules
and regulations at workplace, welfare measures, worker’s safety, employee welfare health
and sanitation, these are the major social decision-making process in the management. In this
category, employees have a say in decision in these areas. They may take an advantage of
their liberty and sometimes, can dominate the management. Here the concept of bounded or
restricted participation can work well.

Economic/Financial decision-making:
It includes involvement of employees on various financial or economic aspects such
as the methods of manufacturing, cost cutting, automation, shut-down, mergers and
acquisition and lay-offs. Inviting ideas from employees on various issues like how to cut
down the operating cost can work wonders.
Personnel decision-making:
The employee’s participation in personnel decision-making refers to their
involvement in various management processes including recruitment and selection, work
distribution, promotions, demotions and transfers, grievance handling, settlements, voluntary
retirement schemes and so on. Participation of employees in these processes can safeguard
their interests and motivate them to work hard for the betterment of self as well as the
organization.
Merits/Advantages:
Worker’s participation in management is a tool which promotes better
industrial relations and establishes industrial peace. It is important concept for both
management and workers. The need is to implement it honestly to reap its merits in the form
of mutual understanding, increased production etc. Worker’s participation in management has
several advantages. They are:
1. Mutual understanding:
The employees and employers nurture two different conflicting interest.
Surprisingly both lack the knowledge of the problems faced by them. Worker’s
participation in management brings both the parties together. This togetherness
enables them to understand each other’s problem. This minimizes conflicts and
promote mutual understanding.
2. Efficiency of worker increased:
The workers became the partner in decision making process. Whatever
decisions are taken, they are their own and hence they have to abide by them. They
become enthusiastic and put lot of hard work while working. This helps in increasing
the overall efficiency of workers.
3. Increase in production:
Increase in efficiency of workers, better understanding between workers and
employers lead to mutual co-operation which results in increased productivity and
increase in total production of the enterprise.
 4. Establishes industrial peace:
Workers participate in decision making process. Whatever decisions good or
bad taken workers are the party to it and hence they cannot evade the responsibility.
Employers and workers understand each other better and conflicts are minimized.
Each dispute is solved with mutual understanding. In this way disputes are eliminated
and industrial peace is restored.
5. Reduces misunderstanding:
Participation reduces misunderstanding regarding the management’s outlook.
This increases the organisation balance.
6. No outside help to sort-out disputes:
Employees themselves are participating in the decision making with the
employers. They therefore realize workers as well as management’s problem better
hence disputes are resolved by understanding the difficulties of each other. So in case
of industrial dispute no outside help is taken they are sorted out within the plant itself
by the employees and employers themselves.
Demerits/Limitations:
In spite of above advantages of worker’s participation there are certain
disadvantages. Following are the disadvantages of worker’s participation:
1. Workers are not enthusiastic:
The workers are not enthusiastic about the scheme and employers believe that
they being incompetent cause delay in decisions. Some of the good decisions cannot
be implemented for lack of support from the workers.
2. Weak trade unions:
In India trade unions are not strong enough. There are multiplicities of trade
unions and they are dominated and led by political leaders. This makes trade unions
weak. They cannot show solidarity of workers. There should be one strong union so
that they can elect competent representatives for participation. Moreover there are
certain problems require specialized knowledge which workers do not possess hence
such problems cannot be solved through participation. They cannot even understand
the gravity of situation.
COMPANY PROFILE:
PREM TEX INERNATIONALS:
PREM TEXTILES INTERNATIONAL is committed to be a leader in
producing quality products satisfying the requirement of customers codes standards and
statutory regulation on time every time through continual improvement. In the quality system
with effective involvement of all employees, leading to business excellence.
 PREM TEX INTERNATIONAL is the leading manufactures and exporters of
home furnishing and textile items in Karur. The company provides the various products and
services to their customers.
NAME AND LOCATION OF THE COMPNY:
NAME: PREM TEX INTERNATIONALS
LOCATION: 32, RAMAKRISHNAPURAM EAST,
KARUR, 639 002, TAMIL NADU, INDIA.
NATURE: HEAD OFFICE
LEGAL FORM: SOLE PROPRIETORSHIP
MOBILE NO: 9894731986
EMAIL ID: premin@vsnl.net
VISION AND MISSION:
OUR VISION:
To be the world class quality retail solution provider to all Global Retail Giants in
home furnishing segment with social commitment.
OUR MISSION:
Excel in quality, technology, design innovation by synergizing best brains and value
the social concerns.
HISTORY:
Prem Textiles International was started in 1992 in Karur out of
Veerappan dream and passion to start a unique Home Furnishing’s business which would
strive to grow beyond unmapped boundaries. Though, it had a humble beginning when it
started supplying to leading importers of Home Textiles in USA, UK, Spain, Italy
Germany, Canada, Australia, Netherlands and Japan, but as per plan, it has in the recent
years graduated to supplying products directly to various Large Retailers across geographical
boundaries.

The Company began its operations in Karur and has now setup various
State-of-the-Art production facilities in Karur. It also has strong international presence
through its manufacturing operations in USA and China.

Prem tex internationals has achieved Rs. 150 crores of annual sales and is
expected to grow to 500 crores in the near future. The Private Equity division of Kodak
Mahindra Bank Limited believes that there is a lot of value in the rapid growth and the vision
of the company and has invested Rs.30 crores in Prem tex internationals. Prem tex
international’s expansion plans have been fuelled by this investment and it has undertaken a
major expansion to set up world class manufacturing facility costing about Rs.100 crores in
India. The company’s legal status is sole proprietorship and the sole proprietor is Mr. V.
Veerappan. He formed the group of companies called the “PREM GROUP OF
COMPANIES”.

DIFFERENT PRODUCT/ SERVICES:

TABLE LINEN:

BED LINEN:
DISH CLOTHES:
TABLE MATS:
CUSHIONS:

DUVET COVERS:
FLOOR MATS:
YOGA MATS:

CURTAINS:
APRONS:
CHAIR COVERS: