WORKERS PARTICIPATION IN MANAGEMENT

Emergence of the concept

Threats from emerging centers of countervailing power particularly organized labour; Early 19th century in Europe Demands of continuous production during War years;

Awareness of the results of the experiments carried out by industrial psychologist (Blake, Mayo, Lewin) Hawthorne Experiment

Emergence of the concept (Contd.)

A genuine understanding, recognition and acceptance by the employers of the role of workers in the industrial set up;

Emergence enterprises.

and

growth

of

state

Meaning

..a process whereby employees, either by themselves or through their trade union representatives, influence decisions which management would otherwise have taken by itself..

Meaning (Contd.)

Participation refers to the formal involvement of members in the exercise of control, usually through decision making in group meetings

-Tannenbaum

Meaning (Contd.)
refers to a process in which two or more parties influence each other in making certain plans, policies & decisions

-French

OBJECTIVES
Objectives may vary based on understanding and acceptance of this institution; by and large, the following four objectives are basic and essential

1. To improve the quality of work life and job satisfaction;

2. To improve efficiency and productivity of enterprise;

OBJECTIVES (Contd.)
3. To improve industrial relations and thereby promote a culture of harmony and understanding;
4. To secure full recognition of the importance of human dignity in industry.

SCOPE OF PARTICIPATION

The way in which workers can and do participate in management varies a great deal, and depends on: a) Organizational circumstances (History; Managerial style; culture; technology; market strategy, etc.)

SCOPE OF PARTICIPATION (Contd.)

b) Subjects or areas in which participation is sought c) Pattern of labour management relations

FORMS OF PARTICIPATION

Joint Consultation- UK

Workers Participation in Management

Co determination- Germany

FORMS OF PARTICIPATION (Contd.)

Industrial democracy- Sweden

Workers Ownership & Self Management ESOP -USA

BROAD DIMENSIONS Participative arrangement three broad dimensions involves

Economic
Psychological

Social

Economic
Implies the acceptance of the contribution of the worker to the prosperity of the enterprise and legitimacy of equitable sharing of gains of increased prosperity.

Psychological
Implies recognition by employers of the non-economic needs of the employees and their innate desire to participate in the industry where they work
-

Sense of importance / accomplishment Freedom and opportunity for expression Sense of belonging

Social
Modern industry, a social institution with interest of capital, employers, workers and the community.

Understanding between employers and employees lead to better efforts and minimizes industrial strife.

Levels of Participation

1.

Shop-Floor level- QCs, SGAs, Suggestion Scheme, Joint Councils Plant Level- Collective bargaining(?), Joint Council Enterprise Level- Worker Director

2.

3.

Steps in Workers Participation

Informative & Associative Participation
Consultative Participation Administrative Participation Decision Making Participation

WPM IN INDIA

Formation of Works Committees TISCO(1920), Govt. printing presses(1920), Carnatick Mills Madras(1922)

Royal Commission on Labour (1929-31)Review of functioning of the Works Committee

WPM IN INDIA (Contd.)

Works Committees legislated under Industrial Disputes Act, 1947 To promote measures for securing and preserving amity and good relations between employers and workmen To that end comment upon matters of common interest or concern

To endeavour to compose any material difference of opinion between the employer and the workmen in respect of such matters

WPM IN INDIA (Contd.)

Post Independence- Stress on Participative Management under Five Year Plans
Workers Participation in Management Scheme in TISCO (1956) Industrial Policy Resolution 1956 Visit of Tripartite Committee to UK, Sweden, France, Belgium, West Germany and Yugoslavia- Formation of Joint Management Councils

WPM IN INDIA (Contd.)

Indian Labour Conference (1959) Clear demarcation of areas for participative decision making Joint Consultative Machinery and Compulsory Arbitrations in Govt Deptts.
Constitutional Amendment- Incorporation of Article- 43A - 1975

Article 43 A:
The state shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organizations engaged in any industry

WPM IN INDIA (Contd.)

Workers Participation in Public Sectors Banks- 1970 Introduction of new Scheme of Workers Participation (1975)Manufacturing and Mining

Revised Schemes for Participation 1977 Commercial and Service Orgns

WPM IN INDIA (Contd.)

Tripartite Committee on Workers Participation- 1977 (Janta Govt) Revised Scheme in 1983 for Central PSUs

The Participation of Workers in Management Bill (1990)

Working Together in TATA STEEL

Agreement Introducing Scheme of Closer Association of Employees with Management Signed on 8th January 1956

THE THREE TIER SET-UP

Joint Consultative Council of Management Chairman Management Representatives + + Employees Representatives
Co-Chairman Secretary
Occupational Health & Environment Committee Sports Coordination advisory Committee Joint Works Quality Committee Hospital Visiting Committee Joint Works Council Management Representatives Employees + Representatives Joint Town & School Visiting Committee Joint Committee of Employees Trg. & Div. C.D. & S.W. Advisory Committee Joint Amenities Committee

Chairman Vice-Chairman Secretary

Central Canteen Managing Committee

General Safety Committee

Joint Departmental Council

Safety Appliances Committee

Suggestion Box Committee

Management Representatives 2 to 10 Employees Representatives 2 to 10

Suggestion Agenda & Follow-up SubCommittee

Quality Training SubCommittee

Safety Health & Environment SubCommittee

Welfare & Amenities SubCommittee

Working together in Tata Steel

General Structure

All committees are bipartite i.e. equal representation from Management and Union The members are nominated by the Management and the Union They hold their meetings as per their schedule, mostly once in a month The Chairmanship and Vice-Chairmanship rotates between the management and the union every year in case of three main committees- JCCM, JWC, and JDC

EVALUATION
UNIONS RESPONSE

It erodes the vitality of the union. The union will cease to be a fighting organization for the cause of the workers. Managements would wean away the workers loyalty weakening the unions. Managements may utilize the system to promote their own interests of production, productivity at the cost of employee health . and welfare

UNION`S RESPONSE (Contd.)

The trade unions, as the organization of workers, should have equal say in major issues like economic, financial and administrative decisions
For industrial democracy to be successful trade union should play the role of an opposition Trade Unions` endorse the views of pluralists

Managements` Perception

Strong opposition to concept of workers` directors on the board Participation in true sense is too far fetched Demands equality Lack of appreciation of business needs by the workers and their representatives Sensitive information cannot be shared

Managements` Perception (Contd.)

Participation by way of QCs/SGAs/Improvement Teams at shop floor level feasible Slows down decision making process waste of managerial time Turns into grievance/demand raising forums promotes populist measures

Managements` Perception (Contd.)

Trade unions insist on controlling nominations playing favorite

Unsuitable for taking hard business decisions

WPM IN INDIA SOME HURDLES

Parting with power both by trade union and management Multiplicity of unions: - Intra and Inter-Union rivalry Lack of specific arrangement for sharing gains of participation Imposition from above rather than initiative from within

WPM IN INDIA SOME HURDLES (Contd.)

Multiplicity of joint bodies No legislation for Union Recognition Lack of support from trade unions
Lack of education and training State`s role in regulating IR bipartism not encouraged

WPM CRITICAL SUCCESS FACTORS

Mutual trust between management and union
Willingness to share power

Respect distinction between interest and work areas

WPM CRITICAL SUCCESS FACTORS (Contd.)

Enlightened management and strong responsible trade union Greater degree of openness on the part of management

Regularity of meetings
Faithful implementation of joint decisions