2.b.workers Participation in Management 2

8/8/2019 2.b.workers Participation in Management 2

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Workers Participation in

Management



Meaning

y Workers· participation in management means giving scope for workers toinfluence the managerial decision-making process at different levels by various forms in the organisation.

y The principal forms of workers· participation are information sharing, joint consultation, suggestion schemes, etc.

y

Redistribution of power between management and workers in the directionof industrial democracy



Worker·s participation

arrangements resulting into the creation of various participative

forums to associate workers with management

v/s

Participative management

Manager·s specific style in which he interacts with his people,

leadership pattern



Objectives of Workers participation in

management

1. Economicobjective

2. SocialObjective

3.Psychological

Objective

y 1.Aware of Democratic right toinfluence the managerialdecisions

y 2. Raise worker¶ level of

motivation and commitment(own decisions)

y 3.Cross-fertilisation and speedycommunication of ideas

4. Avoid conflict and Foster betterco-operation between labour andmanagement.



Importance of Workers¶ Participation in

Management1. Mutual Understanding

2. Higher Productivity

3. Industrial Harmony

4. Industrial Democracy (right of self expression andopportunity to communicate views on policies, worker asresponsible partner in decision making)

5. Less Resistance to change

6. Creativity and Innovation



Forms/level/degree of Participation

y Communication : to give and get info (sharing )

y Consultation : exchange opinions and views before decision

taken

y Co-determination : joint decision making

y Self management : en joying complete authority right from

decision making to execution



Workers Participation in Management

in India

y Indirect Representative : introduced by govt through legal

provisions or notifications.

y E.g Works Committee,Joint Management Council

yWorker·s director etc.

y Direct Participation : opportunity for each and every worker to

participate in management through variety of mechanisms like suggestion

schemes, small group activity ,quality circles etc.





Works Committee (1947)y The industrial disputes act, 1947 provides for the setting up of

works committee consisting of representatives of management andworkers

y

Establishment employing 100 or more workmen or any day onpreceding 12 months.

y It meets frequently for discussion on common problems of theworkers and the management.

y After discussion, joint decisions are taken

y problems of day to day working



List of items WC can deal withy Conditions of work such as ventilation, lighting, temperature

and sanitation

y Amenities such as drinking water, canteen, dining ,crèches,rest rooms, medical and health rooms services

y Safety and accident prevention, occupational diseases andprotective equipment.

y Ad justment of festivals and national holidays.

y Administration of welfare funds.





Items excluded

y Wages and allowances

y Bonus

y Profit sharing

y Work load fixationy Retrenchment or layoff

y Housing services

y Retirement benefits, PF , gratuity etc.



Reasons for failure of WC

y Exclusion of imp items

y Lack of competence of representatives

y Inter union rivalry

y Recommendations are just advisory in naturey No machinery to enforce the decision



Joint Management Council(1958)

y Consists of equal number of representatives of management

and employees ,not exceeding 12 in all.

y Employees Representatives nominated by recognized trade

union



y AN UNDERTAKING MUST MEET THE FOLLOWINGREQUIREMENTS FOR SETTING UP JMC·s

y

It must have 500 or more employees.y It should have a fair record of industrial relations.

y It should have a strong and well organised tradeunion.

yWillingness of employers, workers and tradeunions

y .



FEATURES OR FUNCTIONS of JMC

1.Consultative Functions -council consulted by

management on :

y Administration of standing orders

y

New methods of productiony Retrenchment

y Closure, reduction in or cessation of operation



2.Information ²receiving and suggestion making

functions:

y General economic situation.

y

The state of market, production and sales programmes.y Organisation and general running of the undertaking.

y The annual balance sheet and profit and loss account

statement and connected documents with explanations.

y Methods of manufacture and work

y long term plan for expansion etc.



3.Administrative functions :

y Welfare measures

y Supervision of safety measures

y

Operation of vocational training and apprenticeship schemesy Preparation of schedules of working hours , breaks , holidays

y Payment of rewards for valuable suggestions



Reasons for unsatisfactory working or

partial success

y Trade union fear of loosing power

y Weak representatives

y Employers who already haveWC andTU find it superflous



Workers· Directors(1970)

y Workers· representative on the board of directors of public

sector enterprise and nationalized bank

y Worker director is elected by the most representativeTU



Reasons for failure

y Wd·s were ill equipped to understand the intricacies of board

level matters

y Secrets might be leaked out

y

Union opposition



Worker Participation scheme(1975)

y SHOP C OUN CILS

y For each dept or shop floor, establishment having more than

500 workmen

yEach council consists of equal number of representatives of employers and workers.



Functions :

y Assistance to management in achieving monthly/yearlyproduction targets

y Improvement of production-elimination of wastage andoptimum utilization of resources

y Study of absenteeism in shops/dept and steps to reduce that

y Assistance in maintaining general discipline

y Physical conditions of working etc.

y Welfare and health measures

y Two way communication



y J OI NT C OUN CILS

y Operate for industrial unit as a whole, more than 500

workmen

y The chief executive of the unit is the chairman of the JCy Meets at least once in quarter

y Decision on the basis of consensus



y Functions:y Optimum production

y Matters not solved in shop council or having bearing on another

shop/depty Development of skills of workmen

y Awarding of rewards for valuable suggestions

y General health, safety and welfare measures for the unit or the

plant



Direct participation

y Two way communication: more imp in knowledge

workers

y Suggestion schemes

y

5S concept : Japan forTQM-house keeping practices Shitseke: discipline- maintain and review standards

Seiton : orderliness ²set in order

Seiketsu: standardization of work practices

Seiri: clearing (sorting) ² keep only essential items rest discarded Seiso: sweeping/washing,cleanliness of workplace











y PDCA concept- to improve organizational effectiveness

y Plan-set target

yDo-work to meet target

y Check : target achieved or not

y Act ²to remove difficulties or modify( to improve

organizational effectiveness)



y Q uality of work life (Q WL): joint programmes of cooperationor ¶working together· on the shop floor to improve quality of worklife

-refers to favourableness or unfavourableness of a job environmentfor employees in the organization

y E.G Adequate and fair compensation

y Safe and healthy working conditions

y Opportunity to use and develop human capacitiesy Opportunity for career growth

y Social integration in work force etc.

Documents

2.b.workers Participation in Management 2