Refer Books, Elaborate The Points

WORKERS PARTICIPATION IN MANAGEMENT (WPM)

In general sense participation means the meaningful interaction of human being in an

organisation. Participation enables one to perform better. Industrial democracy can be possible
with the workers participation. It can be said that management of an industrial unit by the people
and for the people It provides a sense of belongingness of a worker to the organization and a
sense of commitment to various decisions taken.

DEFINITION:- International Labour organization has defined workers participation in management .

“As association of workers and their representatives with the decision making process , ranging
from exchange of information , consultation decision and negotiations to more institutionalized
forms such as the presence of workers members on management or supervisory boards or even
management by workers themselves”.

OBJECITVES OF WPM
 To promote increased productivity for the advantage of the organisation, workers and Society.
 To provide a better understanding to employees about their role and place in the process of
attainment of organisational goal.
 To satisfy the workers social and esteem needs.
 To strengthen labour management cooperation and thus maintaining industrial peace and
harmony.
 To develop social education for effective solidarity among the working community.
 An ideological point of view to develop self-management in industry.
 An instrument for improving efficiency of the company and establishing harmonious industrial
relation.
 To build the most dynamic human resource.
 To build the nation through entrepreneurship and economic development.

ESSENTIAL CONDITIONS FOR SUCCESSFUL WPM

 The attitude and outlook of the parties should be enlighted and impartial so that free and
frank exchange of thoughts and opinions could be possible.
 Both parties should have faith in the system and in each other and be willing to work together.
 Wide publicity should be maid in order that to ingrain the participative policy in the mind of
those who are implementing the scheme.
 It should be real and must include issues like increase productivity, development of personnel,
expansion of market etc.
 Participation must work as complementary body for maintaining coordination in work.
 Peaceful environment should be there so that dispute can be avoided which unnecessary give
rise to financial loss.
 Democratic management process should be there so that participation can be implemented at
all level.
 Progressive personnel policies should be there for growth of workers in industry as well as
proper policies should exist for selection, promotion, compensation, rewards and discipline.
 Management must be prepared to share all information pertaing to work and works must
handle it with full confidentiality.
 The follow-up action on the decision of the participating forum should be ensured.

METHODS/SCHEME/FORMS OF WPM:- There are different organizations forms of WPM follow by

different organizations . It depends on the level of participation by the workers .Some of the
methods are as follows.

1) Suggestion method:- Under this methods the suggestions from the workers are invited
regarding the improvement of working condition. The best suggestions which can be suitable
to the management will be implemented and the concerned workers will be rewarded . This
method increases the importance other workers in the organization and encourage other
workers in the organization for more and more participation .
2) Co-Partnership :- This is a method where the workers participate in the decision making
process .They are entitled to get the equity share of the enterprise .The profit of the
organization can be distributed to the workers in the form of share and being the share holder
they can take part in the management .
3) Works Committee:- The committee can be constituted with equal numbers of members from
employee and employer side. The purpose of the committee is create a cordial and
harmonious relationship between the worker and the management .
4) Board Representation:- Under this method two or three workers representative are
nominated to the board of directors of the enterprise . The nominated workers enjoy the
same privilege and authority in the board .They can actively take decisions on policy matters
and procedures of the enterprise along with the other members of the management .This
method ensures an effective step in workers participation in management which promote the
belongingness of the workers.
5) Joint Management Councils :- Joint Management Councils(JMC) is constitute by taking
members from management side as well as workers side to maintain Industrial peace .JMC is
an advisory committee which discuss the matters related to working condition safety
measures training programmes rules and regulations etc.
6) Joint Councils :- It is a collaborative bodies or forums established within an organization to
facilitate communication and cooperation between management and employees. These
councils are designed to address workplace issues, promote better working conditions, and
foster a cooperative relationship between the different stakeholders within a company.
7) Unit Councils :- it is a specific bodies or forums established at the department or unit level
within an organization. These councils operate similarly to joint councils but focus on the
concerns and issues specific to a particular department or unit rather than the entire
organization.
8) Plant Councils :-Plant councils are specialized bodies or forums established within a specific
manufacturing or production facility to address issues, concerns, and improvements related to
that particular operational unit. These councils focus specifically on the needs and challenges
within the plant, covering a wide range of issues pertaining to the manufacturing or
production processes, employee welfare, safety, and other plant-specific matters.
9) Shop Councils :-Shop councils are workplace committees or forums that operate within a
specific shop, section, or area of a company. They are designed to address issues, concerns,
and improvements pertinent to the workings and environment of that particular shop or
department.

MERITS OF WPM:

1) Mutual Understanding:- The mentality of the employer and employee are different .WPM
brings the both parties together. This enables both of them to understand their problems
which minimizes the conflict and promote industrial peace .
2) Increase employee efficiency:- WPM enables the worker to become a partner in various
decision making process .Whatever decisions are taken they are their own and it compels the
workers to abide by them . The workers become enthusiastic and can devote maximum time
in work by the way the workers become more efficient in their work .
3) Establish Industrial Peace:- WPM provides an opportunity how to be more responsible and
understand each other by taking joint decision. This joint responsibility leads to understand
each other better which reduce the dispute. This minimization of conflict leads to
establishment of industrial peace.
4) Better Decision Making:- Workers at various levels of the organization bring different
perspectives and insights to the table. Involving them in decision-making can lead to better-
informed and more balanced decisions.
5) Improved Quality:- Employee participation can lead to a greater focus on quality. Employees
who are involved in quality control and improvement processes are more likely to take
ownership of product or service quality.
6) Innovation and Creativity:- Employees on the front lines often have unique insights into
customer needs and market trends. When they are encouraged to share their ideas and be
part of innovation processes, it can lead to the development of new products, services, or
processes.
7) Promotion Of Industrial Democracy:- WPM helps in promoting industrial democracy, mutual
cooperation and decision of both employer and employee leads to betterment of both the
parties .It leads to promote Industrial democracy .
8) Welcomes Changes:- Any technological charge, managerial change , operational change can be
either rejected or accepted with mutual consultation. If any change will bring more benefit
and reduce the cost it will be welcomed and on the other if any change will be counter
productive it will be rejected.
9) Personal Development:- The workers feel dignified by participating in decision making process.
They can able to face any responsibility and challenge in the industry. Hence personal
development for each worker can be possible by workers participation in management .
10) Improved Employee Relation:- Worker participation can foster a positive work environment
and improve relations between employees and management. When employees feel heard and
valued, it can lead to better labor-management relations.

DEMERITS
1) Slow Decision Making:-Involving more people in decision-making processes can sometimes
lead to slower decision-making. This is especially true when consensus or extensive
consultation is required, which can hinder the organization's agility in responding to rapidly
changing situations.
2) Confidentiality Concerns:- Sharing sensitive information with employees during participation
processes can raise concerns about confidentiality. This is particularly relevant when discussing
matters such as layoffs, mergers, or other sensitive topics.
3) Conflict and Disagreement:- Worker participation can sometimes lead to conflicts and
disagreements among employees or between employees and management. Differences of
opinion can slow down processes and create tension in the workplace.
4) Lack of Expertise:- Not all employees have the expertise or experience necessary to make
informed decisions on certain matters. Involving individuals who lack the knowledge can lead
to sub optimal outcomes.
5) Resistance from Management:- Some managers may be resistant to the idea of worker
participation, fearing that it will undermine their authority or create additional challenges in
managing employees.
6) Resource Intensive:- Implementing worker participation processes, such as employee councils
or committees, can be resource-intensive in terms of time and effort. It may require additional
staff and resources to manage and facilitate participation activities.
7) Inefficiency:- In some cases, worker participation can lead to inefficiencies, as decisions may be
made through consensus-building processes that prioritize agreement over efficiency or
effectiveness.
8) Risk of Unresolved Issues:- When disagreements or conflicts arise during worker participation
processes, there is a risk that these issues may not be resolved satisfactorily, leading to ongoing
tensions within the organization.
9) Exclusion of Certain Employees:- Worker participation initiatives may inadvertently exclude
certain groups of employees, such as remote workers or those with disabilities, who may have
difficulty participating in traditional meetings or forums.
10) Limited Applicability:- Worker participation may not be suitable for all types of organizations or
industries. For some businesses, top-down decision-making may be more effective and
efficient.