Chapter 8

WORKERS’PARTICIPATION IN MANAGEMENT

Faculty
Gp Capt(Dr.)RM Saxena
 WORKER’S PARTICIPATION:
• Participation may be defined as taking part in
decision making by workers.
• Worker’s participation in management seeks to
bridge the gap between workers & the managers.
 DEFINITION:
• Thus, worker’s participation in management means giving scope for
worker to influence the managerial decision making process at different
levels by various forms in organization.
 Objectives
• Increasing the efficiency and establishing
harmonious industrial relations.
• A device to tap human talent.
• A means for achieving industrial peace and harmony
which leads to higher productivity and increased
production.

•
• A humanitarian approach to elevate the status of a
worker in the society.
• An ideological way of developing self-management
and promoting industrial democracy.
• To improve the quality of working life .
• To secure the mutual cooperation of employees and
employers .
• Giving employees better understanding of their role.
• Satisfying the workers’ urge for self-expression.
• Developing of human personality.
 BROAD PURPOSES
• Information sharing

• Sharing decision making

• Self/collective control
 Significance
• Higher productivity.
• Great commitment
• Reduce industrial unrest
• Improve decision making
• Human resource development
• Reduce resistance to change
 Key concepts
• Determinants of WPM are:-
• Situational Factor: like Autonomy, size, technology & organisational Structure.
• Human Factor : like Attitude &perception of Workers as well as Managers’ style &
approach to leadership.
• Form of Formal organisation like Works Committee(WC) & Joint Management
Council(JMC).
• WorksCommittees: ID Act, 1947 provides setting up WCs &b with representatives
of Employers& Employees in all undertakings of 100 or more workers. Office
bearers are President, VP, Secretary, Joint Secretary.
• Tenure is two years & strength Should not exceed 20
• JCMs:Aim was to increase association between employers & employees,to impove
efficiency, educate workers,satisfy his psychological need& improve workers’
welfare. Must for units having 500 or more employees with TU & management &
workers must agree to form JMC.
FORMS OF WPM
• INFORMATIVE PARTICIPATION

• CONSULTATIVE PARTICIPATION

• ASSOCIATIVE PARTICIPATION

• ADMINISTRATIVE PARTICIPATION

• DECISIVE PARTICIPATION
 INFORMATIVE PARTICIPATION
• Refers to sharing of information with workers regarding: Economic
position, State of market, Production & sales programmes,Work methods,
Balance sheet……..etc.

• But here workers have no right to analyze or investigate the information.

 CONSULTATIVE PARTICIPATION
• Workers are given the chance to express their views on various issues
concerning work ,workplace,working condition,market standing,financial
status etc.
• But joint council works as advisory body only. Management may or may
not accept the suggestion.
 Associative participation
• Council is not purely advisory.the management is under moral obligation
to accept and impliment the decision of the council.
ADMINISTRATIVE PARTICIPATION
 Can be said BOARD LEVEL PARTICIPATION
 The workers’ representative on the Board can play a useful role in :
 safeguarding the interests of workers
 can prevail upon top management not to take measures that would be
unpopular with the employee

 can guide the Board members on matters of investment in employee

benefit schemes like housing, and so forth
 DECISIVE PARTICIPATION
• This is the form of participation where decisions are taken jointly on
matters related to production ,safety, welfare etc.
May include :
• Partnership through ownership
• Partnership through complete control
Essential conditions in successful working
of WPM
 The success of workers participation in management
depends upon the following conditions:

 The attitude and outlook of the parties.

 Both parties should have a genuine faith in the

system and in each other and be willing to work
together.

 Participation should be real.

 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 so that
they may effectively take part in collective bargaining
or participation.
 A peaceful atmosphere should be there wherein
there are no strikes and lock-outs, for their
presence ruins the employees, harms the interest of
the society, and puts the employees to financial
losses.

 Authority should be centralized through

democratic management process. The participation
should be at the two or at the most three levels.
LIMITATIONS OF
WPM

 complex organizational structures and modern technology

 It is voluntary in character

Unsatisfactory role of trade unions in promoting WPM

Manager’s consideration of WPM as fraud

Time consuming
 REASONS FOR LIMITED
SUCCESS

 Concept itself may not be clear

 Multiplicity of trade unions and factionalism

 Failure to imbibe the spirit of participation by the parties

 Multiplicity of participative forums

 Lack of arrangements for gain sharing of WPM

REASONS FOR
LIMITED SUCCESS
Cont…..

 Illiteracy of the workers

 Lack of professional expertise of the representatives of the

workers

 Non co-operative attitude of the working class

Unhappy IR

Lack of strong trade unionism

 Suggestions for
improvements

 Serious attention for the removal of the hurdles

 Efforts to stir up the management and workers at the local level

 Governments’ role in giving guidelines and removing

impediments
in the way

 Education and training programme

 A system of sharing the fruits of participation

 CONCLUSION
• Management should be prepared to give all the information connected
with the working of the industry and labor should handle that information
with full confidence and responsibility.
• workers should become aware of their responsibilities, the leaders should
initiate this in them.
• Similarly, the top management should make the lower echelons to show a
new attitude in the light of the new relationship.
Conclusion
CC

 It
gives workers a feeling that he is an integral and an important
part of the organisation.

 This creates a climate in which he may get reasonable

opportunities to show his worth.

 Management should have a constructive attitude and should

regard trade unions not as an obstacle.

 Government should take responsibility for the provision of a

satisfactory workers education
Any Questions?
THANKS!!