'- ' ' ·•.' ' . . ' ,. .

@
• • I 1' 1 _,.~"' ,il ,•~· 1'a ,;I" _ - .•'< •

WORKERS' PARTICIPATION IN MANAGEt,1ENT

. .. . - (WPM) ·· ., , _, , ~-: · . · ·'-
. ' /'1r- .• · ,.

J.,eSrning Objecives
After studying this chapter, you should be able to:
t. Jus#fy the rationale for WPM. ·
z. Define WPM and list its ob_iectives.
3. Discuss the various forms of WPM.
4. Give a review of workers• participation 10
. management in India.
S. Present the progress and problems of WPM scheme 10 India
6. Suggest the ways and means for making WPM ~ffective and successful one.
19.1 RATIONALE-FOR WPM
Before we justify the rationale for WPM, let us fitst understand what participation, iii general.
means- In simple words, participation means the meaningful int,,aelion of human beings with pcol)te
they are concerned to enhance their sense of being in control of their immediate environment In fact,
this has been a phenomenon throughout the history of mankind. In ultimate - • participation
enables one to perform better. People's participation in governance commonly termed as 'clemOCIBCY'
precisely a quest toward that end only, i.e., better pertonn;mce of the govemmenL I)emocrllCY
m~ government of the people, by the people and for the people.
Workers' participation in management that crystallises 'industrial demoefaCY' means Jllllllll8C"
l\'P'1 of an industrial unit by the people for the people. Collective bargaining (<!iscussed later in
CJ,apter 27), empowerment (discussed just in the previous chapter .18) and worms• participation in
manaSement, also called •participative management•, are the ~tations of industrial democ:nCY·
!9this Chapter, we will discuss industrial demQCfllCY in the context of worms• participation in man-
aiement.
Strictly speaking; what purposes dCJllOCf8CY ~-in government~ served by WPM~~
lry. The thinking that for tlJe best in man t o ~ out, 11 ~s necessarY for him":' knoW wh! he ts dot~
certain things and not the others, is precisely th• ra11onale for WPM. _Th•• can be imbued w_ith
!DUltiplicity of justifications. wPM gives the ~kers a sense of belon!Pngness to ihe or~on
and also a sense of cominiunent to various dect•'.ons taken. co~bule ":' better ~ t s m an
organisation. The same has l,eCODle the most destder&IDD1 of the ti1DO m mdustnal orgamsabon&: .
· Th ul f ·· ex·periJnents initiated by several countries like England, Sweden. Qermany.
e res ts o vanous . . · · · · na1 rfo E gland
USA·, Yugoslavia, etc., confirm the role_of_WPM m unthprolv1~glo~ambsatibceo peth tradinn.~eal. n tbod
and s di ;- . here negouauon rather an· cgis auon as n e uon me
can nav1an nat1ons. w . "ti . f Wt>M. · -
of solving
. industrial prob(cnis, a)so supart
. . th b nee of Wl'M, the signt cance
workers o ' .
c;onstder theinselves ID be Just employees,
the contrarY m · e a sc · · Th" · ul · 1 binders th.·
havi· On. . • th. b·ectives of the orgamsatton. is, m ~ate y e
. -ng
effi u· no commitment
·• . to e o . .
th f the organisa11on. H · •'-' eed · " - 0
t n11rti • - •
~ .n . ,.or wor....... ,_..apabOn 1n •
0
cc . ve functtorung and grow
tnanagement 219
 220 Human Resource Managemel'lt
1

19.2 DEFINITION AND OBJECTIVE·s

~ike ~ther behavioural terms, WPM means differe~t things to different people depending upon
their objectives and ·expectations. Thus, WPM is an elashc concept. For ex~le, ~or management it is
a joint consultation prior to decision making, for workers it means co-deternunation. for trade unio
it is the harbinger. of a.new ·order of social relationship and a ne~ set of power e~uation 'Ni~
organisations, while for government it is an association of labour with management without the ftnaJ
authority or responsibility in decision making.
· Let us also go through some important definitions of WPM.
According to Keith Davis 1, "Workers' participation refers to th~ mental and emotional involve.
ment of a person in a group situation which encourages him to contnbute to group goals and share in
responsibility of achieving them".
In the words of Mehtras 2, "Applied to industry, the concept of participation means sharing the
decision-making power by the rank and file of an industrial organisation through their reprcsenta.
tives, at all the appropriate levels of management in the entire range of managerial action".
A clear and more comprehensive definition of WPM is given by the International Labour
Organisation (ILO). According to the ILO3:
"Workers' participation may, broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of information, con-
sultations, decisions and negotiations to more institutionalised forms such as the presence of work-
ers t members on management or supervisory boards or even management by workers theimelvcs as
.
practised in Yugoslavia".
In Yugoslavia, WPM is governed by the Law on Workers' Management of State Economic
Enterpi;-ises and-Higher Economic Association. The Act consists of a three-tier participation struc-
ture: collective bargaining, workers' council, and board of management.
In fact, the basic reason for differences in perception ofWPM is mainly due to the differential
pattern of practices adopted by various countries while implementing workers• participation in man-
agement.
For example, in Great Britain and Sweden, WPM is in the form of Joint Consultation through Joint
Const\ijitive Committees, Works Committees in France, Co-determination Committees in West Ger-
many, Jbint Work Council in Belgium, Workers' Council and Management Board in Yugoslavia and
Union Management Co-operation in USA. In India, WPM is in the form of, what we call, Labour
Management Cooperation and Workers' Participation in Management. It is implemented through the
agencies like Works Committees, Joint Management Councils (JMCs) Shop Councils, Unit Councils
and 1oint Councils, discussed later in the chapter. Notwithstanding, these different fonm of WPM
differ.only in degree, not in nature.
Be the perceptual differences as these may, WPM is a system of communication and consulta-
tion, _either formal or info~l, by which the workers of an organisation are kept informed, as and when
requrred, about the affairs of the undertaking and through which they express their opinion and
contribute to decjsion-making process of management. .

Characteristics -
The following are the main characteristics of WPM:
1. P~~i~ation _implies practi~es which increase the scope for employees• share of influence in
d1c-1s1on:-making process With the assumption of responsibility.
2. Participation presupposes willing acceptance of responsibility by workers.
Iiorl<ers' participation. in. Management
. (WPM) 221
workers part1c1pate m management not as mdmduals
• ,.,;,es. . . . but as a group lhrough their represen-
3
4. worker's partici~ation in management differs from 11 . _ .
while lhe fonner IS based on mutual t . . co ecbve oargammg ,n tne sense tna·
the tatter is essentially based on n1S\mfonnabon sharing and mutual problem solvin~
_ . . 00wer Pay, pressure tactics, and negotiations.

s. 'fhe oastc rationale tor worker's participation in mana

Jabour and tie their fates to th e1r
· pace
- · Thus gemen
t .· ·
ts that
k . th .
wor thers mvest e1af
1 of work th "b
organisation.
. t· Hence, they hav~ a 1egtttmate .. • eyinCollin
. · to share
right ute to e outcomCS
decision-making activities oof
0 rganisa 10n.

objectives
The objectives of WPM are closely netted to the rationable for WPM . Accord"mg1y, theob)·ect·,ves
,rwPM var)' rom country to country depending On !heir levels ot socio-economic deVetopment
p,Iitlc~I phdosoph~es, mdustnal relations see-, and attitude of lhe working class. To quote. die
r11
adm-
ob.ie'uve of WPM IS to co-detenmne at the vanous levels of enterprises in (lennaD)', assign die final
pJ!hOrilY to workers ovey all mattters relating to an undertaking in Yugoslavia, promote good commu-
,;catlon and understandmg between labour and management on lhe issues of business
,;,n aod production in Japan, and enable work-force to influence the working of industries in China',
1~'1
\
foc example.
In India, lhe objective of the government in advocating for workers' participation in management.
,rared in the Industrial Policy Resolution 1956, is a part of its overall endeavour t o ~ a socialist
society, wherein the sharing of a part of the managerial powers by workers is considered necessarY·
0
The objective of WPM, as envisaged in the Second Five Year Plan of India is to ensure:
J. Increase in productivity for the benefit of all eoncemed to an enterprise, i.e., die employer,
the employees and the community at large. _
2. · Satisfaction of worker's urge for self-expression in lhe matters of enterprise management,
3. Making employees better understood of their roles in the organisation.
In ultimate sense, the objective of WPM in India is to achieve organisational effectivenC5S and
lhe satisfaction of the employees, Accordingly, lhe objectives of WPM m Ind••
are to:
I. Promote mutual understanding between management and workers, i.e., industrial harmony.
2. Establish and encourage good communication system at all levels. '\
\1 \
3. Create and promote a sense of belongingness among workers- \

I I I

I I
4. Help handle
. resistence to change. . .
k t ontribute their best for the cause of orgamsatton. I

O
5. Induce a sense among wor . ers decisions
c to which they were a party.
6. •Create a sense of•commitment . to the objectives of WPM, the quesban . then ". to what
Levels of ParticipatJon. Havmg_ known ·n ,oeess. In other words, it is important to knOW the
extent workers can participate in dectSion-maki. g~t n Viewed from this angle, Mhetr~ has sug-
cxtents/1evels of co-deternunauon
. . 1.n an. organisa
· · .
iofrom
. the minimum to the maximum, Smee . these
f'ted five levels of workers' participauon ra:g•:~ity of decision p1aking in an organisati?"• We are,
CVels of participation influence the process an qnk_ g them rrom the minimum to the maximum level
therefore, highlighting here these levels briefly ra in
c1pa11on. ment's infonnation sbarii>g with workers on
Ofpam · . .
fers to manage · di· fthe
nfonitalive participation: Th" re a1ance sbeei, produetion. economic con uons_ o
IUchIitems '1tose are concerned with workers.~ . partant to note that here workers have no nght of
nl,~•- · · --'~" nf such items. It is im ·
222 Human Resource Ma
nagern
close scrutiny of the information provided and management has its prerogative to make decisi
.
issues concerned with workers.
Consultative Participation: In this type of partici~ation, wo~kers a~e c~nsulted in those rnat
which relate to them. Here, the role of workers is restncted to give th e1r views only. However
acceptance and non~acceptance of these views depends on m~nage~ent. ~o~elheless,it provid;s
opportunity to the workers to express their views on matters mvolvmg th e1T interest.
Associative Participation: Here, the role of the wor~ers ' council is not just ad~isory unli
consultative participation. In a way, this is an advanced and improved form of consultative partici
tion. Now, the management is under a moral obligation to acknowlege, accept and implement
unanimous decision of the council.
Administrative Participation: In the administrative participation, dec!s!ons_ already taken
implemented by the workers. Compared to the former three levels of participatmn, the degree
sharing authority and responsibility by the workers is definitely more in this participation.
Decisive Participation: Here, the decisions are taken jointly by the management and the work
of an organisation. In fact, this is the ultimate level of workers' participation in management.

19.3 , FORMS OF WPM

The form of WPM depends, to a great extent, on the levels of participation. The reason being
forms of participation attempt to achieve the objectives of WPM set by an 0rganisation. Hence, ·
deserves mention. Now we, therefore, consider the well-known forms of WPM adopted in organisatio
Suggestion Scheme: Under this scheme, a sugge;)tion commi_ttee is constituted consisting
eql.Jal number of members from management and workers. A suggestion box is installed at an app
priate place in the organisation. Workers are invited and encouraged to put their suggestions i
improving working of tlie organisation into the suggestion box. The suggestion committee peri
cally scrutinizes the suggestions given by the workers. Good suggestions are accepted and impl
mented and also rewarded. This encourages workers to make more and better suggestions.
Works Committee: Under section 3 of the Industrial Disputes Act, 1947, the appropriate Gove
ment may require an enterprise employing I 00 or more workers, to constitute a works committee wi
equal number of representatives from the employees and the management. The main purpose behi
Constituting works -committees is to evolve ways and means for maintaining cordial and harmonio
relations between the employees and the management.
Joint Management Councils (JMCs): JMCs were introduced first in 1958. These councils
formed at plant level with equal number of representatives from employers and employees. These a.
mainly consultative and advisory ones. Hence, neither the workers nor the employers tak~ the
seriously. The responsibility of the JMCs is relating to matters such as working conditions, indi
pline, absenteeism, training, safety, accident prevention, preparation of holiday schemes, etc ..
However, it was alleged that JMCs and work committees appeared similar in their scopes
functions. Further, multiplicity of bipartite consultative bodies did not serve any purpose.
Board Representation: Under this scheme, one or two representatives of workers are nom!na
or elected on th~ Board ~f D1rectors. The basic idea behind incorporating workers• representauon
the Board of D1rectors is to safeguard the workers' interest usher industrial harmony and g
relations between the workers and management. This is the hi~hest form of workers• participation
management.
The Gove~ment itself, _an_ employer, introduced this scheme in several public sector e~I
prises such as Hmdust~n Ant1b1ot1cs Ltd., Hi~dustan Organic Chemicals Ltd., National C~al Me
Development Corporation, Bharat Heavy Engmeering Ltd., National Textile Mills, etc. This sch
'{{D,t<ers' participation in Management (WPM)
' •red the verification of trade .
re11,~1ion of a worker director
rJ"" . whoui:•onl membership
se ected o ' idenffi . of th
' ,cation 223
ot bY the representative union with. ut of a penal Of h e representative union and
ffle m a prescribed t ree persons fu · heel
· subse<iuent to the nationalizaf period. mis to the govern-
ton of bank .
a
t
"""s (ll!anagement
tei<' and as
representatives Miscelleneous
director .'.'" 1970,
Provtsmns) the Govern~ent, under
Scheme · the Nationalired
1970
..,r,.senting officers for a tenture of' the Boards - one repr • mtroduced the nomination of
~:Uonalized banks conducted by the Nari:arsl. LAccording to a stu:;e:;:~: ::ploy~s odand the _other
I"' f th t t' . na abour I . eme mtr uced m the
i,ecause o econ en tonsraised about the scheme bynstttute,
b th the scheme has f'led
a, .m ,ts
. obJecttves
. .
.,. 0 employees (trade unions) and employ-

Co-partnership: . h ans employees part' . . .

oJTIPanY• n er is scCo-partnership
eme, workers me
are ind ed · ,c,pat,on m the share capital of their own
th uc tobuyeq · h
t,e alloW. Utod ma e payments in instalment d mty s ares of the company. Workers may
• s, a vanced loans •
ed ers tok uy equity shares. Workers hold six
C
.,.i,Je wor or even give financial assistance to
b per cent of the shares Of Sch
c,1cutta andk forty-one ty"'.'ne J"'r :ent of the sharesforofexample
Otto India,
gaI Sanitary F1ttmgs, Jallandhar
.,- •
/1,c Board
As shareholders,
of Directors.workers
Howevertakethe
part in them
work · way of· electing their representatives
, anagem~•t by ' · to
th
· ns in India do not favour this sche ers participauon under ts method is limited. Hence, trade
up10 . me.
· I · I workers'
Nonetheless, d" b . .
participation in mana"ement through co-part ners h.1p sc heme was ap-
,·prov~
1 log1ca m. n 1a Y the Supreme Court m its Judgement in Navneet R. Komantvs
, II • . . · . R.K. K_,i1,· 17'
\ I
• )984, oy a owtng workers to takeover a sick umt Kamani Tubes, New Central Jute Mills, Kamani
Metal• and Alloys, Powder Metals and Alloys and HCS Ltd.. are t6e examples of enterprises in which \'
1•··
worker' through shareholding participate in management by their respective wnrkers' co-operatives. I

Workers' Complete ownership: Undec this sc~eme, workers acquire complete control of man·
a~ent of their enterprise through an elected board or/and Workers' Council. This systetn o I I
I
oarticipation is also called "selfmanagement." This prevails in Yugoslavia. In this system, two differ·
ent sets of persons perform two distinct types offunctions, namely, managerial and operatiV!. I.. ,
'"I

.' This system ol participation is characterised by virtueS lik~ workers: identifi~ation with their
~ganisations, loyalty and responsibility to organisations, etc. Thts ushers tn mdus~1al harmony 000 I
'.peace for the organisation. Expectedly, trade unions favour thts fonn of workers part<c1panon'" ,I I
"
I
• & rms of workers' participation in management:
management. 10
Besides. ' the following
. . are the atternauve
) Empowernment (see
·
Chapter 18), Quality Circles (see
27
~ollecuve Bargammg (see Chapter , .
Chapter 18).
These are not discus~ here for the sake of repetition.
19.4 PM IN INDIA:
. A
h REVIEW .
of wPM in India. For convenience
W . the various sc emes
In this section, we attempt to revie~ dependence, and after Independence.
viz t,e,ore 1n
&
•
llrposes, this is presented stage-wise, ·•
P
Before
T
"1dependence .
. vel and i(llported idea from outside• It can be
agement ts nota no . . . . f workers in ,nanagement
he workers• participaton an ,nan andhi suggested parttctpation
h o nttibuted ,noneY to
dated as far back as J920 when MaJaat!P'i ~ur and btain• whlle ,t,arc olde~ ~:t there ,houid be a
; the ground that workers contrtbuted ', re s1tare in its propertY• He sat he ,aid that the aim
• enterprise and that I,oth should, ther< o ;. on among thorn, For the unions,
Pcl1 . d coopera i
ect relationship of friendsh)P an
224 Human Resource Manage

should be to raise the moral and intellectual height of labour and, thus, by sheer merit, make la
master of the meaI\S of prod\lction instead of the slave that it is. It was at his instance that, in 1920
workers and the employers in Abmedabad Textile Industry agreed to settle their disputes by j
discussions and consultations. Therefore, the Abmedabad Agreement may be regarded as a
stone in the history of joint consultation i.e. participative management in India. Following this,
works committees were also set up in the Government Printing Presses and Railways. During the
period, such committees were also set up in the Tata Iron and Steel Company, Jarnshedpur. Since
there is no looking back in this direction.
While supporting the need for works committees, the Royal Commission on Labour6 sugg
that, to promoting industrial harmony and to avoid misunderstanding and settle disputes, not
works committees be set up, but strong trade unions be developed and labour officers be appo ·
Along with the works committee, the Commission also suggested the establishment of a joint mac
ery to deal with the more general questions, and also to act as an advisory appellate body in re
of disputes which ~ere confmed to a single establishment. These recommendations of the Co
sion bore fruits with the provision of formal statutory machinery under the Bombay Industrial
tions Act, 1946 and the Industrial Disputes Act, 1947.

After Independence
In f~ct, the first major step in the direction of workers' participation in management in India
the enactment of the Industrial Disputes Act, 1947 with the dual purpose of prevention and s
ment of industrial disputes. The Industrial Policy Resolution, 1948 advocated WPM by sugg
that labour should be in all matters concerning industrial production. Article 43A of the Constitutioll!
India has provided for WPM in these words:
''The State shall take steps, by suitable legi5lation, or in any other way, to secure the partic
tion of workers in management of undertakings, establishments or other organisations engaged in
industry".
The First Five-Year Plan and the successive plans emphasised the need for workers' participa
in management. For example, the Second Five-Year Plan7 stressed the need for WPM in the folio
words:
"It is necessary in this context that the worker should be made to feel that in his own way
helping build a progressive state. The creation of industrial democracy, therefore, is a prerequisite
the establishment of a socialist society".
The Government of India set up a 'Study Group on Workers' Participation in Management', in 1
consisting of ·representatives of the government, employers, and workers to examine the syst
WPM in the UK, Sweden, France, Belgium, West Germany and Yugoslavia and make recommen
for the Indian case. The Group submitted its report in May 1957 with the following recornmenda ·
1~ WPM schemes should be introduced in selected undertakings on a voluntarY basis.
2. A sub-committee consisting of representatives of workers, employers and government
be set up for considering the WPM in India.
The above recommendations, among other things, were accepted by 15th Indian Labour C
ence held in July 1957. The Conference appointed 1l 12 member sub-committee to look into ·
details of the scheme. The recommendations made-by the sub-commitee were discussed in a "S
on Labour-Management Co-operation" held in New Delhi on January 31 and February 1, 1958,_It
up a '1)raft Model AgrCCDJCDI" between labour and management for the establisbmCDI of the
Management Councils (JMCs) which woul_d have the following three sets of functions:
First, to fulfil its functions as an advisory body.
Second, to receive information on certain matters.
 . •pation in Management (WPM)
, part1CI
225
6
"'6rfi- ~ to fulfil administrative responsibilities.
fh'~d, the Seminar on Labour Management Co-operation also took important decisions about
13es1~e;.,e councils, its office bearers, term of office, etc. Thus, the Joint Management Councils
siie O set up in 1958.
dlti pvere · .
(~CS .0 g the recommendattons of the Administrative Reforms Commission, the Government of
0
foJl W' d the inclusion of the representatives of workers ·o n the Board of Directors of public
ccepte II . th·1s h N . 1· .
1 a rtakings. Fo owmg
pelia , t e ationa 1sed Banks (Management and Miscellaneous Provt-
tf/,1or un::rne 1970 also provided for the appointment of worker director to their Board. One director
si0ns) 5~ among employees (who are workmen) and another from among officers for a tenure of 3
.

;,ears· uptoiuty 1975~there had been three forms of workers' participation in management intro-
'fhUS, C . J . M .
in India: Works ommttteeS, omt anagement Councils and Workers-Directors (pubhc sec-
duced B ards of Directors.
ior)~nd:r the Gov~mment of_India's 20-Point Economic Programmes, a new scheme of shops ~d
ouncils was mtroduced m 1975 after the emergency was declared in June 1975. In the following
plan~~76, the Government ~f In~ia am~n~ed the constitution to incorporate workers' participation in
year rnent as one of the Dtrect1ve Prmc1ples of State Policy.
manage
In June 1977, the Government of India set up a high-powered Expert Committee on Companies
dMRTP Acts under the Chairmanship of Rajinder Sachar with terms of reference to (I) consider the
an visions of the Companies Act and MRTP Act and (ii) to suggest measures by which workers'
::Ucipation in m_anageme?t and share capital of companies can be brought about. The Sachar Com-
mittee submitted tts report m August 1978.
Meanwhile', the Jariata Government also set up a "Committee on Workers' Participation in Man-
agement and Equity" in se_ptember 1977 under the Chairmanship of Ravindra Varma, the then Union
Minister of Labour. The Committee consisted of 18 members representing Central Organi.:iations of
1rade·unions and employers and some of the States and professional institutions of management. The
strength-of e ommittee increased to 21 by nominating three additional members in January 1978. The
terms of reference of the Committee were to consider, among other things, the need for a statutory
scheme for workers' participation in management. The Committee was also to study and recommend
an_outline of a comprehensive scheme of workers. partcipation at different levels of management in
industrial establishments and undertakings ·
The Committee submitted its report to the Government in March 1979. The report show~ that the
• • ('j

ma,ionty of the members favoured adoption of a three-tier system of participation, viz .• at the shop,
plant and corporate or board levels. However, the employer of private sector did not favour board or
co~~ate level participation ·id management. It also recommended to enact a legislation on workers'
Plrticipation in management covering all undertakings, be public or private, employing 500 or more
Workei}.

Wor~e.Gov~~m~nt ~ccepted the recomme~dations made by_the 21-Memb~r Committee on

&ch rs ~artic1pation m Management and Equity. Based on a review of the working of the various
~Illes of w?rkers • participation in management and experiences so gained, the Government formu-
and notified a new comprehensive scheme on a voluntary basis.for •workers• Participation in
&ernent• on 30th December, 1983. The salient features of the scheme were:
L . .
'I'he scheme will be non-legislative.
2
3' It Will apply to all c~ntral public sector enterprises, expect those specifically exempted.
• It envisaged constitution of bipartite forums-at shop and plant levels.
 !Q
22.6 Human Resource .Manage
4. The mode of representation of workers representatives was to be determined by c
tion with the concerned unions. ons
5. A wide range ofwork related issues were brought within the ambit of the councils.
However, a host of constraints such as multiplicity of unions, inter-union rivalry, lack of
kno_wledge on the part of workers about the scheme, etc., served as stumbling blocks in the
working of the scheme.
su:
Participation of Workers in Management Bill 1990 (Bill No. :xxvm of 1990)
So far, all the schemes pertaining to the workers' participation in management have been
s~tut?ry which failed to provide meaningful participation to workers in management. To remedy
s1tuat1on, the Government has, therefore, introduced a Bill _in the Parliament on 25th May,I
provide for:
1. Meaningful three-tier participation of workers in management in all industrial establ
ments.
2. Formulation of scheme specifying criteria regarding nomination of representatives ,
workers.
3. The principle of secr~t ballot for determining the representation of workers on the shop
and establishment level councils.
4. Rules for monitoring the scheme.
5. Deletion of Section 3 of th~ Industrial Dispute Act, 1947.
6. Rules for appointmentof Inspector.
7. Imprisonment up to 2 years pr a fine upto Rs. 20,000 or both for contravention of the
sions.

19.S
'
EVALUATION OF WPM SCHEME
'

Despite the noble intentions and evolution of the various WPM schemes over the period
schemes have not been a success. There are ample evidences to report that the Indian experien
workers' participation in maQagemeni has been far from satistfactory. To quote, the 1983 scheme
introduced in only 91 out~f 216 ceiltral public sector undertakings upto september 1986. In as
covering six industrial units, (three each from public and private sectors) concluded that the func
ing of JMCs had not been entirely satisfactory for reasons like JMCs imposition from above
acceptance after hard persuasion, no clear-.cut demarcation of JMCs from other consultative co
tees like works committee and production committee, etc ..
· Having re~iewed_the WPM scheme in India, Zaheer9 reported the following reasons for the f ·
of th~ concept of WPM in India.
(,) Lack of understanding of the concepts.
(ii) Rigid attitude of the employees.
(iii) Vagueness of the legal definitions, scope and functions of these bipartite forums.
(iv) Half-pearled implementation of decisions arrived at these forums.
(i') · -Suspicion in the minds of trade union leaders about the fairness of the scheme.
Of the several reasons for the failure of WPM~ some more important ones are examined
closely here:
1. Ideological Differences: There is an ideological difference between the employees .
~mployers regarding the WPM scheme. While employees want to introduce the scheme sim
 227
, participation in Mahagement (WPM)
rf<B(S
ylO
1151)' at
all Jevels. the employers are of the opini .
ult is the half-hearted acceptan on~ mtroduce participation gradually at the Boar d
rieO ,o. 'fhe res ce and implementation of the scheme.
1eve.1 roperimbibementoftheSplrit· Th
j, fJIIP . sal of grievances h1"gher
.
. e workers' representatives consider WPM an mstrU-
,.edfeS • wages, better kin •• · f ·
efll for Ject the larger problems like b . wor . g cond1t10ns, better secunty o service.
f!1 •the>' neg m lo ers feel that the .sen_tee1s~ reduction, productivity increase, etc. On the
e~er side, tbe ~d p Je bipart·t bod" participati~n will take away from them their right to ~anage.
o11• -•so cons• er I e ies as substitutes for trade lllll. .
.

Th I d" · . . __ _, __
. ~

3. .t.t,sence of Strong
. . Trade Unionism·
. . · e n tan trade umomsm is charac~ A by •features

·. !"city ofuruons, mter-umon

·1ce JllulttP . . nvalry• affil" · to political
1 iatton . . philosophies, etc. As such. there 1s ·
1
It le or absence of strong trade umorusm in the country. This renders the working of the WPM scheme
1ac . e .
·11effecttv . . .
1 · 4, JUiteracy of W~~ke1:5: The Indian working class is generally illiterate. The workers• represen-
iatives on various participation bodies are, therefore. expectedly illiterate or less educated. As such.
. tht absence of adeauate knowledge on their part about the various aspects of the WPM schemC"-
:eY are un~bl~ to actively and effectively participate in decision making forums. Sinha" felt that il
was mainly 1lhteracy of workers that rendered the JMCs ineffective or failure.
5, J111proper Implementation: There are reports that, in contrast to the stated objectives of
participation'. i~ most cases: various ~oards find themselves dealing with personal matters rather than
with productivity and efficiency. This causes dissatisfaction to the employers towards the participa-
tion scheme 12 • In addition, delay in implementing the suggestions and recommendations of various
t,odies often leads to the waning of workers' interest in such bodies and schemes.
6. Absence of Committed Spirit: Past experiences suggest that mere creation of structures an4
formulation of schemes do not guarantee success. Spirit precedes success. The same seems absent in
case of WPM scheme-be on the.part of employees or employers. There- are instances to cite that in
some cases, even elementary procedures such as selection of reoresentatives, recognition of unions
13
and procedure for holding meetings were not clearly laid down. It is reported that the public sector
14
undertakings are plagued by absence of genuine bargaining platforms • This leads to lack of trust
between the parties and, in turn, eventual failure of the purpose. " . '

19.6 MAKING WPM EFFECTIVE

It is important that the WPM does not operate in vacuum. The following are the conditions to be
satisfied to make the WPM effective or successful:
1. The objectives of WPM should be closely set by the parties concerned.
2. There should be a democratic, strong and representative union of workers to partcipate in
management on behalf of workers. · ·
3. There should be a sincere feeling of participative management at all levels. Rigidity in terms
of heirarchical participation distorts the atmosphere for p~cipative management.
4. There should be continuous communication and consultation ~tween the workers and
management in matters affecting their functioning.
S. The workers and management should develop positive approach and favourable attitude to
participative management. Conductirig training and orientation progr~es for the parties
concemect can help create a conducive environment for successful application of WPM.
Besides, research'' has shown that the effectiveness of participative management can .be im-
()rov~ if certainparameteis are kept into consideration. Of these parameters, the following chief ones
areh1gh1·tghted here:
228.
Human Resource Manag
erne111
1. The effectiveness of participation is sine que non with fulfilment of motives of the p ..
pants. artic1.
2. The clarity of goals and effectiveness of participation are positively related. Say the greater
the former, the higher the latter and vice versa.
3. More the issue is difficult, greater is the effectiveness of settlement through participato
mechanism. · ry
4. Urgency of decision is inversely related with effectiveness of decision.
5. Last but no means the least, the more accurate and useful the information, the higher th
" .
euect1veness of participation. e

While discussing about the effectiveness of participative management, it is worth mentionin

that the effectiveness based on one parameter or a set of parameters may vary across cultures. Eac:
country and organisation has a unique culture of its own. For example, while self-detenni'nation is very
mucn valued by Americans, the same is not shared by workers in South America. Germans cohere in
group:s only if they are led by a leader, while the informal group is the norm in USA1 6• Thus, these facts
support the point that the effectiveness of p~icipative management will not be the same, i.e. uniform
universally.
· One last mention about the Indian experience in WPM before we close this chapter. As men-
tioned earlier, since Tata Iron and Steel Company (TISCO) was the pioneer in introducing wPM in
India, hence, it seems in the fitness of context to presen_tthe TISCO experience in WPM.
Workers' Participation in Management at TISCO
The close association between employees and management at TISCO is dated far back in 1919.
However, it formalized in theform of workers' participation in management in August 1956. Since then,
there is no looking back in this regard. In 1982, TISCO celebrated the first silver jubilee of workers'
participation in management scheme. In fact, right from inception of the scheme, the purpose of the
scheme was to promote productivity, make know workers better understood of their role and place,
and satisfy their urge for self-expression.
Since 1957, the WPM scheme, as set up at TISCO, consists of a three-tier system as outlined below:
,l. Joint Departmental Councils (JDC)
2. Joint Works Councils (JWC)
3. Joint Consultative Council of Management (JCCM).
The specific functions performed by these bodies are discussed as follows:

Joint Departmental Councils (JDCs)

These Councils are set up at the department level. The main/function of JDCs was to study
operational problems, advise on the ways and mean.; deemed necessary to promote productivity.
Matters such as welfare and safety provisions, improvement in working conditions also fell within tbe
purview of JDCs 17 • At present, there are 40 joint departmental councils at TISCO.

Joint Works Councils (JWC)

JWCs review the wo;king of JDCs and other committees such as Suggestion Box Committee,
Safety Committee and Canteen Managing Committee.
Joint Consultative Council of Management (JCCM)
Like JWC, the JCCM also reviews the working of JDCs and JWCs. Besides, JCCM also advises
management on matters like production and welfare activities of TISCO.
 rs' participation in Management (WP
'/1(#-8 . M)
'1'he
.,., 8t,ove. mentioned Councils cons1st . of rep 229
,..i,er. snl",Clal
,,.._- taSk groups. were. also &,onned to resentatives
avo· 0
f workeu and management in equal
;... Co""""'·
·ot1 r<P"""'tabve5 to enable them to effoctivel :-==
Aslo, special onentation and trainin id overlapping of the functions perlonnod by
were offered for both management and
th< V{)'!d ~ e n t as sucessful one at uk~izc.the sch~. All these efforts and initiatives
ri'° ,n,nageroent IS that from 1957 to middli, of 1.;,One 2 indicabon of TJSCO's success in par1ici-
pl esti°"'of whtch 70.3 per cent have bee • •the IDCs have discussed a total of14•104
5'11 . n implemented H
vseo c,tpenence a successful one is that th : ere. the most important point that made
dl,,,IIY in the process of participative managem"..:heme tnvolved both workers and management

19.7 SUMMARY
fbis surnmarY is. organised. by the learning
. ob. . given
')ectives . on page ... 219:
' The rationaleand
organisation for WPM lies inof
also a sense the fact th · • -
. allt gives workers a sense of belongingness to the
1 cornrnibnent to various decisions taken-
z. wPM
WP!d m
means associating workers .at e.very 1eve1• dectSion
. in Jndia is to achieve orgamsat1onal
•.
effectiveness andmaking, Toe main
the satisfaction of objcctiVC of
the employ- . -
ees.
.. '

. 'fhere are·at least five

· levels
· drnini' .
of participation that can be developed at the enterpnse
· 1eve1·. infionnative,
·
consultattve, associative, a strattve, and decisive participation.
3, Workers participate m management through suggesoon scbem... wor"" cotlllllliu:e. JOID·
n,anagement councils, board representation, co-partnershiP and complete owncnhit>· Col-
lective bargaining, quality circles and empowerment are altomative fonns to participative
management.
4. WPM in India bas been in practice for quite long time. Over the period, the Government of
India has introduced a number of schemes of participative management Participation of
Workeis in Management Bill, 1990 is the most recent one when the Govcmment. for the fusl
time, introduced a bill to make three-tier representative forums of participation-
s. So far the progress of WPM in India has not been _satisfactorY because of reasons like
idOOlogical differences,absellce of strong trade uruontSm, ilbteracY of-ken, al,senCC of

positive
6. Clear andspirit, etc.formulated objectives, strong trade_ uniondism, fav o~blbeeattitudetheto par-
closely 1
.. . th flow of communtcanon an: consu tattoo tween par-
t1c1pat1ve management, ~~oo . kers' articipation in management.
ties, etc., are the p,erequ1s1tes for e!fecuve wor P
KEYTERMS
participative Management
Democracy Quality Circles (9() '-

.
Empowennent 15cuss10N Q1.JF.STIONS ,
. REVIEW AND D . nt necessary? Whal are the objectives
1 · · · uon tn managem• '0i
' ., . I , .
~1 :
· Why do you think workers' parncipa
of WJ'M? · . eJlle' t? Bii•S out ilS i ~ l!SO·
2. , . · atio• tn pt311l18,
What is meant by workers parnc•P . . . in 111 ' gen\ent?
3 . . , paruc1pauon 1 i , ', , .
· What 1s the rational• for workers , '.J ,i,,.,,atiQn tn management
4 . sofworkers pai r TII' 1
· Bnetly discuss the levels and foJ111 .
230 Human Resource Mana
Qern
S. Review the schemes of workers' participation in management in India and outline the pr
.. ec
d 1t10ns for their success. ·
6 - Describe the various methods for achieving employee participation in management.
7. Critically review the government schemes of workers' participation in management and 8
gest the prerequisites to make them effective.
8. "Workers' participation in management in India has not been a resounding success". Doy
agree? Give your reasons.
9. · Visit an organisation using the participative management. Study it and evaluate its effecti
ness.
10. Write notes on:
(a) WorksCommittees
(b) Joint Management Councils
(c) Joint Decisive Participation.

REFERENO:S
1. Keith Davis: Human Relations at Work, Tata McGraw-Hill, New Delhi, 1975, p. 1-88.
2. V. G. Mehtras: Workers' Participation in Management, Holt, New York, 1975. .
' - '

3. International Labour Organisation: Labour Productivity Missions to Underdeveloped C

tries, lnfl!mational I.Abour Review, July, 1957, p. 10.
4. c:B. Mamoria, Satish Mamoria and S. ·v. Gankar: Dynamics ofIndustrial Relations, Him
Publishing House, Nagpur, 2000, pp. 512-513.
S. V. G. Mehtras: I.Abour Participation in Management, 'Manaktalas, Bombay, 1966.
6. Report of Royal.Co,mmissit;m on labour, 1938, p. 344.
7. Second Five-Year Plan, -1956, p. 577. ·
8. N. R. Sheth: Joint Management Councils: Problems and Prospects, Shri Ram Centre for
trial Relations and Human.Resources, New Delhi, 1977.
9. M.A. Zaheer: Participation: A New Dimension, Integrated Management, May, 1980.
1O. · Z. Tarie: Workers' Participation in Management, Shri Ram Centre for Industrial Relations
Human Resources, New Delhi, 1969. .
11. Jai B. P.Sinha: A Ca:.e of Reversal in Participation Management, Indian Journal of Indus
Relations, 1974, Vol.l(,),No.2,pp_. 179~187.·
12. Arun Monappa and Mirga S. Saiyadain: Personnel Management, Tata Mcgraw-Hill Publis
Company Limited, New Delhi, 1997, p. 314.
13. N. R. Seth: Hazards oflndustrial Democracy, Economic and Political Weekly, 1972.
14. Seminar on I.Abour Participation in Management, Government of India, New Delhi, 1
t S. R. K. Vernia and P. R. N. Sinha: Workers' Participation in Management, Oxford & IBH J>l!b
ingCo., New Delhi, 1991, pp. 8~-85.
16. N.. H. F. Maier and L. ~- Hoffman: Group Decisions in England and United States, Pers
Psychology, 1962, Vol. 15, pp. 7,5-87.
17. Working Together; Public Relations Department, TISCO, Jamshedpur, January 1973.