07 Worker's Participation in Management

8/9/2019 07 Worker's Participation in Management

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WORKER'SWORKER'S

PARTICIPATION IN INDIA.PARTICIPATION IN INDIA. Causes Of Poor Industrial RelationsCauses Of Poor Industrial RelationsBetween Employer And Employees:-Between Employer And Employees:-

Poor I.RS

Economic causes Managerial Causes Political causes Other causes


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) Economic factors:-

) Economic factors:-

a) wages.a) wages.

b) Dearness Allowance and Bonus.b) Dearness Allowance and Bonus.

c) High Industrial profits.c) High Industrial profits.

d) Working condition and Working hours.d) Working condition and Working hours.

e) Modernization and Automation of plante) Modernization and Automation of plantand machiner.and machiner.

f) Demand for other facilities.f) Demand for other facilities.


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) Managerial causes.

) Managerial causes.

a) Denial of recognition to !rade "nions.a) Denial of recognition to !rade "nions.

b) Defecti#e recruitment policies.b) Defecti#e recruitment policies.

c) Irregular $a%&ff and retrenchment.c) Irregular $a%&ff and retrenchment.

d) Defiance of agreement and codes.d) Defiance of agreement and codes.

e) Defecti#e $eadership.e) Defecti#e $eadership.

f) Weak !rade "nions.f) Weak !rade "nions.


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) Political causes.

) Political causes.

a) Influence of 'oliticians.a) Influence of 'oliticians.


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mportance of

mportance of

maintaining sound

aintaining sound

ndustrial relations.ndustrial relations.


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*)+educes industrial disputes.*)+educes industrial disputes.

,) High morale.,) High morale.

-) Mental re#olution.-) Mental re#olution.

) /ew 'rogrammes.) /ew 'rogrammes.

0) +educed wastage.0) +educed wastage.


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ntroduction of Workers

ntroduction of Workers

Participation in

articipation in

Management.

anagement.

Definition1Definition1

22 It implies a situation whereIt implies a situation where

worker3s representati#es are 1to someworker3s representati#es are 1to somee4tent1 in#ol#ed in the process ofe4tent1 in#ol#ed in the process of

management decision making 1but wheremanagement decision making 1but where

the ultimate power is in the hands ofthe ultimate power is in the hands ofmanagement.5management.5

....Ian Clegg.Ian Clegg.


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ims of WPM.

ims of WPM.

i) An instrument.i) An instrument.

ii) A de#iceii) A de#ice

iii) A means.iii) A means.

i#) A humanitarian act..i#) A humanitarian act..

#) An ideological point of #iew.#) An ideological point of #iew.


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O!"ecti#es of Workers

!"ecti#es of Workers

Participation in

articipation in

Management.

anagement.

i) 6conomic ob7ecti#e.i) 6conomic ob7ecti#e.

ii) (ocial ob7ecti#es.ii) (ocial ob7ecti#es.

iii) 'schological ob7ecti#es.iii) 'schological ob7ecti#es.


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mportance of WPM.

mportance of WPM.

*) Mutual understanding.*) Mutual understanding.

,) Increase in production.,) Increase in production.

-) 6liminating industrial disputes.-) 6liminating industrial disputes.

) Increase efficienc of workers.) Increase efficienc of workers. 0) /o outside inter#ention.0) /o outside inter#ention.

8) Industrial democrac.8) Industrial democrac.

9) /o resistance of change.9) /o resistance of change. :);reati#it of emploees can be spotted out.:);reati#it of emploees can be spotted out.


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$imitations of WPM.

imitations of WPM.

*) Workers are inefficient.*) Workers are inefficient.

,) /o participation possible in,) /o participation possible incomplicated problems.complicated problems.

-) Weak trade unions.-) Weak trade unions.


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WPM at operational le#el

PM at operational le#el

WPM at operationalWPM at operationalLevel.Level.

Joint managementJoint management

o!nilo!nilS"op o!nil# an$S"op o!nil# an$

Joint o!nil#Joint o!nil#


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Joint managementJoint management

o!nilo!nil

ual representati#es of workers

and management was accepted b the Indianand management was accepted b the Indian

/ational ;ongress with the o#erall goal of a/ational ;ongress with the o#erall goal of a

2socialistic patterns of societ5 in *?0.2socialistic patterns of societ5 in *?0.

(etting up such councils was purel on(etting up such councils was purel on

#oluntar basis and with a consultati#e#oluntar basis and with a consultati#efunction. (ome of its important ob7ecti#es were@function. (ome of its important ob7ecti#es were@


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*) !o ser#e as an authentic channel of*) !o ser#e as an authentic channel of

communication between the emploeescommunication between the emploees

and the management.and the management.

,) !o create a sense of participation,) !o create a sense of participation

amongst workmen.amongst workmen.

-) !o encourage suggestions from-) !o encourage suggestions fromemploees.emploees.


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) !o help increase production and in) !o help increase production and in

general producti#it.general producti#it.

0) !o impro#e the working and li#ing0) !o impro#e the working and li#ing

conditions of emploees.conditions of emploees.


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!he councils had the right to recei#e the!he councils had the right to recei#e the

information about the economic status ofinformation about the economic status of

the enterprise1 marketing1 production andthe enterprise1 marketing1 production andsales programmers1 methods ofsales programmers1 methods of

manufacture and work1 annual balancemanufacture and work1 annual balance

sheet and profit and loss statement1 andsheet and profit and loss statement1 andgeneral working1 present and future 1ofgeneral working1 present and future 1of

the enterprise1 which would help thethe enterprise1 which would help the

members of the council to use thismembers of the council to use this

information while making some usefulinformation while making some useful

suggestions to the managementsuggestions to the management


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!hough initiall #er enthusiastic in their!hough initiall #er enthusiastic in their

approach1 the councils lost fa#our soon1approach1 the councils lost fa#our soon1

both with management and the tradeboth with management and the tradeunions1 due to hostile attitude of the tradeunions1 due to hostile attitude of the trade

unions1 lack of interest b the workersunions1 lack of interest b the workers

1and the indifference of the management.1and the indifference of the management.


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Howe#er 1interest in the field of workersHowe#er 1interest in the field of workers

participation was again re#i#ed inparticipation was again re#i#ed in

october1*?90 under the ,%pointoctober1*?90 under the ,%point

economic programme.A schemeeconomic programme.A scheme

pro#ided a two%tier model%shop council atpro#ided a two%tier model%shop council at

the plant le#el and 7oint council at thethe plant le#el and 7oint council at theenterprise le#el.enterprise le#el.


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S"op o!nilS"op o!nilwill attend to matterswill attend to matters

such as increasing production 1o#erallsuch as increasing production 1o#erall

efficienc of the shopCdepartment 1controlefficienc of the shopCdepartment 1control

of wastetage1 absenteeism on shop1of wastetage1 absenteeism on shop1

safet and general maintenance ofsafet and general maintenance of

discipline1welfare1health measures etc.discipline1welfare1health measures etc.


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T"e Joint Co!nilT"e Joint Co!nilwill deal withwill deal with

matters like optimum production1matters like optimum production1

efficienc and fi4ation of producti#itefficienc and fi4ation of producti#itnorms of machines andnorms of machines and

men1workplanning and achie#ingmen1workplanning and achie#ing

production targets1 de#elopment of skillsproduction targets1 de#elopment of skillsof operati#es1 schedules of workingof operati#es1 schedules of working

hours and holidas1 rewards on #aluablehours and holidas1 rewards on #aluable

suggestions etc.suggestions etc.


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Within ne4t two ears 1the go#ernmentWithin ne4t two ears 1the go#ernment

e4tended this scheme to commercial ande4tended this scheme to commercial and

ser#ice organization in public sector also.ser#ice organization in public sector also.

!he basic ob7ecti#e was to generate!he basic ob7ecti#e was to generate

mutual trust and confidence between themutual trust and confidence between the

workers and the management 1toworkers and the management 1topromote acti#e in#ol#ement of workers inpromote acti#e in#ol#ement of workers in

the entire production process.the entire production process.


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(uggestion to make W'M (chemes(uggestion to make W'M (chemes

(uccessful in I/DIA.(uccessful in I/DIA.


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Pre-conditions for

re-conditions for

success.

uccess.

!he success of an scheme of participati#e!he success of an scheme of participati#e

management is dependent on some of themanagement is dependent on some of the

basic points regarding work en#ironmentbasic points regarding work en#ironment

1which are as under1which are as under

!here should be a strong1 demographic and!here should be a strong1 demographic and

representati#e unionnism1without an politicalrepresentati#e unionnism1without an politicalforces and multiplicit in unions.forces and multiplicit in unions.


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Both parties should de#elop their attitudeBoth parties should de#elop their attitude

and outlook1 and must ha#e full faith inand outlook1 and must ha#e full faith in

the soundness of this concept.the soundness of this concept.

+ights of each other are recognized and+ights of each other are recognized and

protected b the presence of legalprotected b the presence of legalframework1 thought is not used often.framework1 thought is not used often.


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!HA/E F&"!HA/E F&"


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%orms of WPM

orms of WPM

Works ;ommittees.Works ;ommittees.

=oint Management ;ouncils.=oint Management ;ouncils.

Workers +epresentati#es on the Board ofWorkers +epresentati#es on the Board ofManagement.Management.

(hop ;ouncils.(hop ;ouncils.=oint ;ouncils.=oint ;ouncils.

"nit ;ouncils."nit ;ouncils.

&ther uit ;apital.


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-) Information (haring model.-) Information (haring model.

) ;onsultation Model.) ;onsultation Model.

0)Association of Workers models.0)Association of Workers models.

8);ollecti#e Bargaining Model.8);ollecti#e Bargaining Model.9) Workers self Management model.9) Workers self Management model.

:) Descending 'articipation model.:) Descending 'articipation model.

?) Workers self management Model.?) Workers self management Model.


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07 Worker's Participation in Management