WORKER’S

PARTICIPATION IN
MANAGEMENT
A PRESENTATION GIVEN BY:
1.SUVADEEP CHAKRABORTY(134).
2.SOUVIK MITRA(116).
3.SHARMISTHA BISWAS(100).
4.SONAL BHATTACHARJEE(108).
5.SANDIP SAMAJDER(92).
6.SUDAKSHINA BANARJEE(125).
7.PRINCE VISHAL SWADESHI(77).
 WAYS OF PARTICIPATION
(FORMS)
The participation of workers can take place
by one or all the methods listed below:
1. Board level participation
2. Ownership participation
3. Complete control
4. Staff or work councils
5. Joint councils and committees
 WAYS OF
PARTICIPATION
(CONTD….)
6. Collective Bargaining
7. Job enlargement and enrichment
8. Suggestion schemes
9. Quality circles
10. TQM
1 1. Empowered teams
12. Financial participation
 
PARTICIPATION THROUGH JOB
ENLARGEMENT AND JOB
ENRICHMENT

METHODS OF JOB
DESIGNING

JOB ENLARGEMENT JOB ENRICHMENT

EXPANDING THE JOB ADDING MOTIVATORS TO

CONTENT JOB
JOB ENLARGEMENT
JOB ENRICHMENT
 PARTICIPATION THROUGH
SUGGESTION SCHEMES
• A means by which employee’s are encouraged and invited to offer ideas
relating to the business.

• New ideas might relate to:

 New products and services;
 Improvement of current products and services;
 Improvement of processes.

• In this way employees interest in the problems of the organization is aroused

and maintained.

• The rewards given to the employees are in line with the benefits derived from
the suggestions.
THROUGH
QUALITY CIRCLES:

Small group of employees in the same work area who

voluntarily meet to resolve related problems.

OBJECTIVES:
• Enhance human resources.
• Improve quality of products and services.
• Improve various supervisory skills
• Satisfy workers.
ORGANIZATIONAL STRUCTURE
OF QUALITY CIRCLES

7.CO-ORDINATING
AGENCY
TOP MANAGEMENT

6.

STEERING COMMITTEE
5

FACILITATORS
4

LEADER/DY.LEADER
3
MEMBERS
2
1
NON-MEMBERS
• Employees become involved in decision-
making, acquire communication and
analytical skills and improve efficiency of
the work place.

• Organization gets to enjoy higher

savings-to-cost ratios.

• Chances of QC members to get

promotions are enhanced.
• Tried by BHEL, Mahindra and Mahindra,
Godrej and Boyce among others.

• Experienced mixed results:

 M&M (jeep division) with 76 QCs has
experienced favourable results.
 Technical problems got solved.
 Workers got to get out of their daily
routine and do something challenging.
• Trade unions look at it as:
 A way of overburdening workers, and
 An attempt to undermine their role.
 Total Quality
Management(TQM)

TQM refers to the deep

commitment, almost obsession, of
an organization to quality. Every
step in company’s processes is
subjected to intense and regular
scrutiny for ways to improve it.
 TQM as participative
method
TQM is called participative because it is a
formal programme involving every employee
in the organization; making each one
responsible for improving quality everyday. It
is a formal programme which involves direct
participation of all employees.
 
 Some traditional beliefs
discarded by TQM

High quality costs more.

•

Quality can be improved by inspection.

•

Defects cannot be completely eliminated.

•
Quality in the job of the QC personnel.
•
 New principles of TQM

Meet the customer’s requirement on time, the first time, and 100% of the time.
•

Strive to do error-free work.

•

Manage by prevention, not correction.

•

Measure the cost of quality.

•
EMPOWERED
TEAMS
WHAT EMPOWERMENT MEANS

• Empowerment means passing on authority &

responsibility to the employees.
• Employees experience a sense of ownership &
control over their jobs.
• Employees may feel more responsible, may take
initiative in their work getting a kind of
independence.
• They may get more work done, may enjoy the
work more; they feel free while working.
APPROACHES TO BE FOLLOWED
FOR EMPOWERMENT
• Organizational structure should be flat and
team based in contrary to the traditional
layered and individual based structure.

• For empowerment to occur managerial role

has to be like coach or facilitator rather
than direct controller.

• Job process is planned by teams not by

management only.
 FEATURES OF EMPOWERED OR
SELF-DIRECTED TEAMS
• Empowered to share various management
and leadership functions.

• Plan, control and improve their work.

• Often create their schedules and review

their performance as a group.
 CNTD..
• May prepare their own budgets and co-ordinate their work
with other departments.

– Usually order materials, keep inventories and deal with

suppliers.
– Frequently responsible for acquiring any new training they
might need.
– May hire their own replacement to assume responsibility
for the quality of their products or services

• Titan, Reliance, ABB, GE Plastics (India), Wipro Corporation

and Wipro InfoTech are empowering employees – both
frontline as well as production staff, and are enjoying
positive results
 PRE-REQUISITES FOR
SUCCESSFUL
PARTICIPATION
CLEAR
DEFINED
EFFECTIVE OBJECTIV EFFECTIVE
COMMUNICATI ES TRADE
ON UNIONISM

REMOVAL TRAININ
OF PRE- G AND
OUTSIDE REQUISITES EDUCATI
UNIONS FOR ON
PARTICIPATIO
N
TRUST DECISION
AMONG BOTH ROLE OF MAKING AT
THE PARTIES GOVERNMENT ALL LEVELS
 PRE-REQUISITES FOR
SUCCESSFUL
PARTICIPATION (contd….)
CLEAR DEFINED OBJECTIVES: Closely and mutually formed
•
objectives .
• FREE FLOW COMMUNICATION: Effective communication
between workers and management .
• REMOVAL OF OUTSIDE TRADE UNIONS: Outside Trade
unions should not be allowed to participate .
• EFFECTIVE TRADE UNIONISM: Strong and democratic
unions representing the case of workers .
• WORKER’S EDUCATION: The reason for faliure of Workers
participation in management in INDIA .
 PRE-REQUISITES FOR
SUCCESSFUL
PARTICIPATION (contd….)
• TRUST : Trust between both the parties
is necessary.

• DECISION MAKING :Both parties must

be involved in effective decision making
at all levels.

• ROLE OF GOVERNMENT :Government

must train the workers for effective
participation.
 LIMITATIONS OF
PARTICIPATION
Technology and organizations today are so
complex that specialized work-roles are
required.

•This means employees will not be able to

participate effectively in matters beyond
their particular environment.

• The role of trade unions in promoting

participative management has been far from
satisfactory.
 FINANCIAL
PARTICIPATION
• Financial participation involves less
consultations or even joint decisions.

• Performance of the employee is linked to

the performance of the organization.

• If an employee has a financial stake in

the organization,he/she likely to be more
positively motivated and involved.
 SOME SCHEMES OF
FINANCIAL PARTICIPATION
• Profit-linked pay.

• Profit sharing and Employees’ stock

Option schemes.

• Pension fund participation.

FOR
CONCEPT BASED DIFFICULTIES:
Firstly, the fundamental difficulties in the way lie in the concept itself.
There is a basic conflict of interests between the workers and the
owners of the business enterprise.

MULTIPLICITY OF TRADE UNIONS:

Multiplicity of trade unions and factionalism has been a serious
obstacle in the way of workers’ participation in management.
ENFORCEMENT BY LAW OR COMPULSION:
Enforcement of law or compulsion would thwart
the very
purpose of scheme and would act as serious
constraint on its
successful implementation.

PLETHORA OF JOINT BODIES:

Both managements and trade unions have often
complained of
a plethora of joint bodies in Indian industries for
example,
works committees etc.
LACK OF SPECIFIC ARRANGEMENTS FOR SHARING THE GAINS
OF PARTICIPATION:
Workers are assured in a vague manner, that they would gain if production
increases and quality of products improves as a result of participation, but
vague and remote expectations cannot be expected to enthuse the workers.

FAILURE TO ENTHUSE AFFILIATES ABOUT THE USEFULNESS

OF THE SCHEMES:

LACK OF TRAINING AND EDUCATION ABOUT THE CONTENT:

 Suggestions for
Improvement
• Efforts should be taken to improve worker-management
relations at the local or enterprise levels.

• The government should give guidelines to remove the

impediments in the way.

• Trade union rivalry should be reduced by amending trade

union laws and regulating procedural aspects of collective
bargaining.

• Fruits of participation should be shared with the workers

 Evolution of participative
management India
• The beginning towards WPM was made with the
Industrial Disputes Act, 1947, which made Works
Committees mandatory in industrial establishments
employing 100 or more workers.

• The Industrial Policy Resolution adopted by the

government in 1956 stated that there should be some
joint consultation to ensure industrial peace, and
improve employer-employee relations. But this
gradually waned.
 Evolution of participative
management India
(contd……)
During the emergency of 1975-77, the interest in these schemes was
•
revived by the then Prime Minister by including Workers’
Participation in industry in the government’s 20-point programme.

• The government started persuading large enterprises to set up joint

consultative committees and councils at different levels.

• But the response from the employers and employees stayed

lukewarm till the introduction of the workers participation bill in
Rajya Sabha in 1990.
 CASE STUDY
TISCO are the pioneers in establishing joint
consultation in India, it is worthwhile to look
at workers' participation at TISCO.Closer
association of employees with management
at TISCO began in 1919 and was formalized
in August 1956. The purpose was to promote
increased productivity, provide a better
understanding to the employees of their role
and importance, and to satisfy the urge for
self expression. The scheme as set up at
TISCO consist of a three-tiered system with
joint department councils (JDCs) constituted
at the departmental level. Next, joint works
The specific functions of these three bodies
were as follows:
JDCs were “to study operational results and
production problems, advice on the steps
deemed necessary to promote and
rationalize production, improve productivity
and discipline and economize cost.
Promotion of welfare and safety,
encouragement of suggestions and
improvement of working conditions also fell
within their purview.” JWCs were “to
discharge special function of reviewing
every month the working of JDCs and other
committees such as Suggestion Box
Discussion

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