WORKERS PARTICIPATION IN

MANAGEMENT

Submitted to: Submitted by:

Parul Munshi
Dr. Rachna Jaiswal
Dept. of Business MBA 4th Semester
Management
MEANING OF WORKERS
PARTICIPATION IN MANAGEMENT
Workers’ participation in management is a process by which subordinate
employees, either individually or collectively, become involved in one or more
aspects of organizational decision making within the enterprises in which they
work. The concept of workers’ participation in management encompasses the
following:
 It provides scope for employees in decision-making of the organization.
 The participation may be at the shop level, departmental level or at the top level.
 The participation includes the willingness to share the responsibility of the
organization by the workers.
OBJECTIVES OF WORKERS
PARTICIPATION IN MANAGEMENT

To build the most

To establish Industrial To satisfy the workers’
dynamic Human
Democracy. social and esteem needs.
Resources.

To strengthen labour- To promote increased

Its psychological
management co- productivity for the
objective is to secure
operation and thus advantage of the
full recognition of the
maintain Industrial organization, workers
workers.
peace and harmony. and the society at large.
Factors Organizational Culture
Influencing
the Workers Leadership Style
Participation Legal and Regulatory Frameworks
in
Management Employee Trust and Psychological Safety
Communication Channels
Incentives and Recognition
Training and Education
Workplace Democracy
Economic Factors
LEVELS OF WORKERS
PARTICIPATION IN MANAGEMENT
Information participation: It ensures that employees are able to receive information and express their
views pertaining to the matter of general economic importance.

Consultative importance: Here workers are consulted on the matters of employee welfare such as
work, safety and health. However, final decision always rests with the top-level management, as
employees’ views are only advisory in nature.

Associative participation: It is an extension of consultative participation as management here is

under the moral obligation to accept and implement the unanimous decisions of the employees.
Under this method the managers and workers jointly take decisions

Administrative participation: It ensures greater share of workers’ participation in discharge of

managerial functions. Here, decisions already taken by the management come to employees,
preferably with alternatives for administration and employees have to select the best from those for
implementation.

Decisive participation: Highest level of participation where decisions are jointly taken on the
matters relating to production, welfare etc.
FORMS OF WORKERS
PARTICIPATION IN MANAGEMENT

1. Joint consultation model: In the joint consultation model the management consults with the workers before taking
decisions. The workers represent their view through ‘Joint consultative Committees’.

2. Joint decision model: In this form both the workers and management jointly decide and execute the decisions.

3. Self management of auto management: In this model, the entire control is in the hands of workers. Where the state
industrial units are run by the workers under a scheme called ‘Self Management or Auto Management Scheme’.

4. Workers’ representation on board: Under this method, the workers elect their representative and send them to the Board
to participate in the decision making process.
IMPORTANCE OF WORKERS
PARTICIPATION IN MANAGEMENT

Unique motivational power and a great psychological value.

Peace and harmony between workers and management

Workers get to see how their actions would contribute to the overall growth of the company.

They tend to view the decisions as `their own’ and are more enthusiastic in their implementation.

Participation makes them more responsible.

They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented
ideas.
PRINCIPLES OF WORKERS
PARTICIPATION IN MANAGEMENT

The worker's participation in management works on the following principles.

 There should be a democratic environment and participation in the company's
decision-making.
 It leads to the maximum collaboration among the company.
 This participation concept has the least state intervention.
 The worker's participation in management presents a better social justice in
company working.
 This principle leads to more efficiency in the company. Organizational health
improves with this concept.
 There should be a willingness for the company owners and employees to work
together.
ESSENTIAL CONDITIONS FOR WORKERS
PARTICIPATION IN MANAGEMENT

 Both parties must present a positive outlook for dialogue exchange. It ensures a
free discussion for the benefit of all.
 The management and workers need trust and faith. They must believe in the
system and present the best methods. It helps avoid resentment.
 There should be regular discussions on work conditions and production. Issues
impacting both parties should be up for debate.
 The power for business decisions must not be centralized. It will help provide
better power and responsibility to all levels.
 There must be development programs for labour. It will help develop their
knowledge and understanding abilities.
 Strong unions are also necessary to ensure the representation of the workers.
ADVANTAGES AND DISADVANTAGES OF WORKERS
PARTICIPATION IN MANAGEMENT
Advantages
 Participation leads to a better understanding of
the company.
 The workers get more motivation to increase
their efficiency.
 The increased understanding and efficiency
ultimately improve productivity.
 There is an increased peace in the industry.
 The worker's participation in management also
implements democratic governance.
 The workers become more welcoming of the
change when they know it.
 It reduces confusion or misunderstandings in the
company.
Disadvantages
 The workers may not be enthusiastic about the changes. It
can lead to more issues with implementing new policies.
 Weak trade unions can affect participation. The workers may
not have the strength to unite.
 Participation can delay several decisions. It can lead to more
time for decision-making.
 The decision quality may reduce with multiple opinions. The
expert will have to listen to everyone else's views.
 This participation can also increase disputes if any party
becomes stubborn. It results in conflicts.
 CONCLUSION

 Workers participation in management is an essential ingredient of Industrial democracy.

 The concept of workers participation in management is based on Human Relations approach to
Management which brought about a new set of values to labor and management.
 Traditionally the concept of Workers Participation in Management refers to participation of non-managerial
employees in the decision-making process of the organization.
 Workers’ participation is also known as ‘labour participation’ or ‘employee participation’ in management.
 Workers’ 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.
THANK YOU