Workers Parti cipation in Management

Workers Participation in Management

The realization of workers need for

participation in the management is influenced by the following factors

Technology adoption leading to complexity in

production process calls for increased worker cooperation

Employees are no longer treated as

subservient but are treated as equals.

Growing influence of unions prevents

exploitation of employees

Workers Participation in Management

Workers

articipation in !anagement is a system of communication and consultation" either formal or informal" by which employees of an organisation are kept informed about the affairs of the undertaking and through which they express their opinion and contribute to management decisions. equity, equality and voluntarism.

#t is industrial democracy in action based on the principles of #t is distribution of social power in industry so that it tends to be

shared among all who are engaged in the work rather than concentrated in the hands of minority.

Workers Participation in Management

The concept of W ! is a broad and complex one. $epending on the socio%

political environment and cultural conditions" the scope and contents of participation change. #nternational #nstitute of &abour 'tudies( W ! is the participation resulting from the practices which increase the scope for employees) share of influence in decision%making at different tiers of organizational hierarchy with concomitant *related+ assumption of responsibility. #&,( Workers) participation" may broadly be taken to cover all terms of association of workers and their representatives with the decision%making process" ranging from exchange of information" consultations" decisions and negotiations" to more institutionalized forms such as the presence of workers) member on management or supervisory boards or even management by workers themselves *as practiced in -ugoslavia+.

Workers Participation in Management

The main implications of workers)

participation in management as summarized by #&,( . Workers have ideas which can be useful/ . Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere

Workers Participation in Management

lant 0ouncil 1 The plant council is formed in pursuance of the recommendations of

the second meeting of the Group on &abour at 2ew $elhi on 34 rd 'eptember 5678. The scheme is applicable to all 0entral public sector undertakings" except specific exemption given by the Government.
Features ,ne plant council for the whole unit and each plant council should consist of not less

than 9 and not more than 57 members

#ts tenure shall be for a period of three years The council shall meet at at%least once in a quarter Functions :unctions are based on ,perational ;reas Economic and financial areas ersonnel !atters Welfare and Environmental ;reas <

Workers Participation in Management

0ollective =argaining 1 #ssues over which the interests of

workers and management are competitive such as employment conditions" wage rates" working hours and the number of holidays are usual areas for collective bargaining.
>oint ;dministration" >oint decision%making or 0onsultation 1

#ssues over which parties are equally concerned such as fund money" canteen" annual sports" workers welfare facilities" etc."
The difference between >oint ;dministration" $ecision

!aking and 0onsultation is very narrow in nature.

Workers Participation in Management

Informative and Associative Participation % ?ight to receive

information" discuss and give suggestions on the general economic situation of the concern. :or example 1
The state of the market"

roduction and 'ales rogrammes

0ircumstances affecting the economic position of the company &ong term plans of expansion and redeployment Consultative Participation 1 #nvolves a high degree of sharing of

views of the members and giving them an opportunity to express their feelings. !embers are consulted on matters such as 1
Welfare amenities ;doption of 2ew Technology and the problems emanating from it 'afety measures <

Workers Participation in Management

Administrative Participation 1 #nvolves a greater degree of sharing

of authority and responsibility of the management functions. !embers are given little for autonomy in the exercise of administrative and supervisory powers with regard to 1
The preparation of schedules of working hours" breaks and

holidays
ayment of reward for valuable suggestions Decision Participation 1 #s the highest form of participation. The

delegation of authority and responsibility of managerial function is maximum in matters like 1

Economic" :inancial and ;dministrative policies the decisions are

mutually taken

Workers Participation in Management

#n 563@ !ahatma Gandhi had suggested that workers contributed

labour and brains" while shareholders contributed money to enterprise" and that both should" therefore share in its prosperity.
The influence of !ahatma Gandhi bore fruit and for the first time >oint

0onsultation was adopted in the 0otton Textile #ndustry.

The first maAor step came during the enactment of #ndustrial $isputes

;ct" 56BC.
The #ndustrial

olicy ?esolution had suggested that labour should be consulted in all matter concerning industrial production. 568C.

:urther the scheme of >oint !anagement 0ouncil was formulated in

Workers Participation in Management

; 'tudy Group on Workers

articipation in !anagement " consisting of representatives of the Government" employers and workers was set up in 5689" it favoured the system of >oint !anagement 0ouncils and submitted its report in 568C emphasising 1 workers and managerial supervisory staff may realise the implications of such a scheme

#n #ndia" an education campaign should be launched so that

The Aoint consultation should be Din%builtE #mportance should be given to reorientation of attitudes" strong

self%confident trade unions and good industrial relations

2o compulsion should be applied" only permissive legislation be

favoured in setting up the councils

Workers Participation in Management

Workers

articipation in !anagement 'cheme is in vogue in three forms(

The Works 0ommittee 1 set up under the #ndustrial $isputes

;ct" 56BC
The >oint !anagement 0ouncils % set up as a result of the

&abour%!anagement 0o%operation 'eminar" 5687

The scheme for workers F?epresentative on the =oard of

!anagement *under the !anagement and !iscellaneous 'cheme" 56C@+ on some public and private sector enterprises" including industrial undertakings and nationalised banks

Workers Participation in Management

Joint Councils 1 ;t every divisionGregionGzonal level or as may be considered necessary in

a particular branch of an organisationGservice 5@@ or more people" there shall be a Aoint council.
Features 1 Each organisationGservice shall decide the number of councils to be set up for different

types of services
The tenure of the council shall be two years and every decision shall be on the basis of

consensus
The Aoint council shall meet whenever necessary" but at%least once in a quarter Functions 'ettlement of matters which unresolved by unit level councils ?eview of the working of the unit level council for improvements in customer service $evelopment of skills of workers and adequate facilities for trading #mprovement in the general conditions of the work and preparation of schedules of

working hours and holidays

<

Workers Participation in Management

Unit Councils 1 Encouraged by the success of >oint 0ouncils scheme in manufacturing and mining units" Hnit

0ouncils was set up on 8 th >anuary" 56CC in commercial and service organisation in public sector.
Features ?epresentatives of workers and management of the organisationGservice" employing 5@@ or more workers"

may be formed in each unit to discuss day%to%day problems and find solutions
Every unit council shall consist of an equal number of representatives of the management and workers.

!anagement representatives should consist from the unit concerned

The 0ouncil shall meet once in a month and the decision of a unit council shall be the parties concerned

Functions To create conditions for achieving optimum efficiency" better customer service To study absenteeism problem and recommend steps to reduce it To eliminate pilferage and all forms of corruption and to institute a system of rewards for this purpose and

to recommend and safety" health and welfare measures with two%way communication <

Workers Participation in Management

Plant Council 1 The plant council is formed in pursuance of the

recommendations of the second meeting of the Group on &abour at 2ew $elhi on 34 rd 'eptember 5678. The scheme is applicable to all 0entral public sector undertakings" except specific exemption given by the Government.
Features ,ne plant council for the whole unit and each plant council should consist of

not less than 9 and not more than 57 members

#ts tenure shall be for a period of three years The council shall meet at at%least once in a quarter Functions :unctions are based on ,perational ;reas Economic and financial areas ersonnel !atters Welfare and Environmental ;reas

Workers Participation in Management

Wor er!s "epresentation on #oard of $ana%ement % ,n the recommendations

of the ;dministrative ?eforms 0ommission made in its report on public sector undertakings" the Government of #ndia accepted" in principle" that representatives of workers should be taken on the =oard of $irectors of ublic 'ector enterprises.
Features 1 articipation should be limited to companies which employ 5@@@ or more The Worker $irector shall be elected through a secret ballot resence of Worker $irector on the =oard shall not lead to any breach in

the confidentiality of the information required

Functions The Worker $irector participates in all the functions of the =oard" beside

they also review the working of shop and plant council

<

Workers Participation in Management

Workers representatives have been appointed on the =oards of

!anagement of a few public undertakings on a trial basis 1

Iindustan ;ntibiotics &imited Iindustan ,rganic 0hemicals &imited 2ational 0oal !ines $evelopment 0orporation" etc." Evaluation of Workers

articipation in !anagement 'cheme 1

#n #ndia though the concept of participative management is

supported in principle by all parties" Government" employers and employees 1 no serious interest has been shown in it except by the Government.