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WORKERSPARTICIPATION IN

MANAGEMENT

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Meaning of WPM

WPM is a system of communication andconsultation, either formal or informal, bywhich employees of an organization arekept informed about the affairs of an

undertaking and through which theyexpress their opinion and contribute tomgt decisions.

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Objectives of WPM

Increasing productivity for the generalbenefit of the enterprise, the employeesand the community;

Giving employees a better understandingof their role in the working of the industry& of the production process; and

Satisfying the workers urge for self-expression, thus leading to industrialpeace, better relations and increased co-operation.

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Forms of WPM

Informative & associative

participation Consultative participation

Administrative participation

Decision participation

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Participative forums in India

Works committees;

Joint mgt. Councils;

Joint councils; Unit councils;

Plant councils;

Shop councils;

Workers representative on the board ofmgt; and

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Conditions necessary for effectiveworking of the scheme

Congenial work environment

Well defined roles

Faith in the efficacy of the scheme Wide publicity

Free flow of information throughout theenterprise

Should be based on mutual trust Decisions taken by different participatory

forums must be sincerely carried out inthe stipulated time

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Reasons for failure of WPM

Ideological differences between the employerand the employees regarding the degree ofparticipation.

Failure to imbibe the spirit of participation by theparties

Multiplicity of participative forums

Lack of strong trade unionism

Unhappy IR Illiteracy of workers

Non co-operative attitude of the working class

Delays in the implementation of the decisions ofthe participative bodies

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

works committee consisting of representatives of management andworkers

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

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

After discussion, joint decisions are taken

problems of day to day working

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List of items WC can dealwith

Conditions of work such as ventilation, lighting,temperature and sanitation

Amenities such as drinking water, canteen,dining ,crches, rest rooms, medical and healthrooms services

Safety and accident prevention, occupational

diseases and protective equipment.

Adjustment of festivals and national holidays. Administration of welfare funds.

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Educational and recreational such aslibraries, reading rooms, cinema-

shows, sports, games, communitywelfare and celebrations, games,

Implementation and review ofdecisions arrived at meeting ofworks committees

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Items excluded

Wages and allowances

Bonus

Profit sharing

Work load fixation

Retrenchment or layoff

Housing services

Retirement benefits, PF , gratuityetc.

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Reasons for failure of WC

Exclusion of imp items

Lack of competence of

representatives Inter union rivalry

Recommendations are just advisory

in nature No machinery to enforce the

decision

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Joint ManagementCouncil(1958)

Consists of equal number ofrepresentatives of management and

employees ,not exceeding 12 in all. Employees Representatives

nominated by recognized trade

union

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AN UNDERTAKING MUST MEET THEFOLLOWING REQUIREMENTS FORSETTING UP JMCs

It must have 500 or more employees.

It should have a fair record of industrial relations.

It should have a strong and well organised tradeunion.

Willingness of employers, workers and tradeunions

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FEATURES OR FUNCTIONSof JMC

1. Consultative Functions -councilconsulted by management on :

Administration of standing orders New methods of production

Retrenchment

Closure, reduction in or cessation ofoperation

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2.Informationreceiving and suggestion making functions:

General economic situation.

The state of market, production and sales programmes.

Organisation and general running of the undertaking. The annual balance sheet and profit and loss account statement and

connected documents with explanations.

Methods of manufacture and work

long term plan for expansion etc.

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3.Administrative functions : Welfare measures

Supervision of safety measures Operation of vocational training and

apprenticeship schemes

Preparation of schedules of working hours ,

breaks , holidays Payment of rewards for valuable suggestions

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Reasons for unsatisfactoryworking or partial success

Trade union fear of loosing power

Weak representatives

Employers who already have WCand TU find it superfluous

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Worker Participationscheme(1975)

SHOP COUNCILS

For each dept or shop floor,

establishment having more than 500workmen

Each council consists of equal

number of representatives ofemployers and workers.

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Functions :

Assistance to management in achieving monthly/yearlyproduction targets

Improvement of production-elimination of wastage andoptimum utilization of resources

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

Assistance in maintaining general discipline

Physical conditions of working etc.

Welfare and health measures

Two way communication

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JOINT COUNCILS

Operate for industrial unit as a whole,

more than 500 workmen The chief executive of the unit is the

chairman of the JC

Meets at least once in quarter

Decision on the basis of consensus

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Functions: Optimum production

Matters not solved in shop council or havingbearing on another shop/dept

Development of skills of workmen

Awarding of rewards for valuable suggestions

General health, safety and welfare measures forthe unit or the plant

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Workers Directors(1970)

Workers representative on theboard of directors of public sector

enterprise and nationalized bank Worker director is elected by the

most representative TU

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Reasons for failure

Wds were ill equipped tounderstand the intricacies of board

level matters Secrets might be leaked out

Union opposition

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Direct participation

Two way communication: moreimp in knowledge workers

Suggestion schemes 5S concept : Japan for TQM-

house keeping practices

Shitseke: discipline- maintain and reviewstandards

Seiton : orderliness set in order

Seiketsu: standardization of work practices

Seiri: clearing (sorting)

keep only essential

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PDCA concept- to improve organizational

effectiveness

Plan-set target

Do-work to meet target

Check : target achieved or not

Actto remove difficulties or modify( to

improve organizational effectiveness)

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Quality of work life (QWL): joint programmes ofcooperation or working together on the shop floor toimprove quality of work life

-refers to favourableness or unfavourableness of a jobenvironment for employees in the organization

Adequate and fair compensation

Safe and healthy working conditions Opportunity to use and develop human capacities

Opportunity for career growth

Social integration in work force etc.

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