Meaning and Definition

“The concept of worker’s participation in management

crystallizes the concept of industrial democracy, and indicates an attempt on the part of an employer to
build his employees into a team which works towards the realization of common objectives” The
concept of worker’s participation aims at providing an opportunity to the workers to take part in the
management decisionmaking. Worker’s participation is adopted and practiced differently in different
organizations. While in some places, the employees might be required to just give their suggestions and
the final decision-making authority vests with the management, in other places, the workers might be
involved in taking only operational decisions. In some other places, however, workers might get to
actively participate in all the decisions of the organization, including those at the strategic level.
Workers’ participation in management can be in any shape, from establishing work-committee to auto-
management by the employees. The aim of management is to get wok through others. Workers, if they
are permitted to participate and involve themselves in some of the decisions relating to work situation,
etc., can perhaps achieve the company objectives more effectively.

Levels of Participation

The degree of influence that workers are allowed to exercise can be classified into five levels - from the
minimum to maximum degree of participation. These levels are: Informative participation

At this level of worker’s participation, information regarding the balance sheet, production targets, new
technology introductionetc. is shared with the workers. It is a one-way communication from the
management to the workers. The workers have no role to play in organizational management.

Consultative participation

Worker representatives in different forums like working committees and joint management councils are
consulted on matters such as employee benefits, employee welfare and work conditions. The
recommendations of the worker representatives are given due consideration, but the final decision-
making authority rests with the management.

Associative participation

The management is under a moral obligation to accept and implement the unanimous decision of the
worker’s council. The workers at this level of participation have a major role to play, when compared
with the earlier two stages

. Administrative participation

In administrative participation, the worker’s council is given certain alternatives from which it can select
the one it wants to implement. At this level workers enjoy a greater degree of influence than at the
previous three levels.

Decision participation
 At this level, decisions are taken jointly on matters relating to production and welfare. As the decisions
are taken with the mutual consent, both the parties are obliged to abide by them, and the decisions are
successfully implemented.

Purpose of Workers Participation Workers participation in management ensures that the capabilities of
workers are properly utilized and that they are able to make a significant contribution to the
effectiveness and economic welfare of the organization.

The reasons for workers participation are as follows:

It bridges the gap between the management and the workers by authorizing the workers to take part in
managerial functions.

ӹ Workers feel valued and therefore are more committed to their work. ӹ They feel they have the
ability o influence organizational decisions and this makes them more responsible in performing their
duties

. ӹ Since they are involved in the process of decision-making, nay change in the organization can be
implement without resistance from them. ӹ Participation also ensures that each party (workers and
management) understands the problem and constraints of the other. This helps in reducing industrial
conflict

. ӹ Participation enables equal distribution of power in industry so that it tends to be shared among all
those engaged in organizational work.

ӹ Participation facilitates effective communication between the workers and the management.

ӹ The increased use of technology in industry has necessitated the growing co-operation of workers
because of the complex operations of production.

To summarize, participation improves the progress and prosperity of the enterprise as workers put in
their best efforts. Psychologically, it helps in fulfilling the non-monetary needs of the employees and,
sociologically, it reduces the number of industrial disputes and creates a positive atmosphere and
interest in the work being performed.

Types of Workers Participation

Workers participation in management may take many forms, e.g.

1) Formal participation, which can be –

ӹ Ascending participation

ӹ Descending participation

2) Informal participation
I Formal participation It consists of some plan for labour-management co-operation, i.e., to some
degree, recognized as a modus operandi between management and workers, frequently through a
union.

1) Workers and management may work together on such plans as

ӹ Accident prevention

ӹ Elimination of waste and defective work

ӹ Attendance & Absenteeism

ӹ Employee insurance plans, etc.

2) In ascending type of participation, the elected representatives of workers participate in managerial

. 3) In descending type of participation, workers participate in the planning and deciding their own work
on the shop floor.

4) Collectively, workers can participate in –

ӹ Works committees, which are meant for promoting measures for securing and preserving amity and
good relations between workers and management. A works committee comments upon matters of
common interest and attempts to settle any material difference of opinion between the two parties.. ӹ

Joint – councils of workers and management may decide the issues on which interests of management
and workers are identical, e.g., Accident prevention and safety measures, determination of production
standards, workers training, welfare measures etc

. ӹ Information sharing in which workers are told about certain aspects of the company, e.g., plans for
expansion, financial position of the company, etc

. ӹ Employees director, i.e., an elected representative of the (employees or) workers is one of the board
of directors.

5) Individually workers can participate in management through

Job Enlargement and Job Enrichment

Job enlargement means expanding the job –content – adding task elements horizontally. Job
enrichment means that additional motivators are added to the job so that it is more rewarding. The
purpose of job enlargement and job enrichment is to relieve the boredom of the worker, which flows
from excessive specialization in mass- production industries so that the job itself may be source of self-
satisfaction. Job enlargement and job enrichment do provide for worker’s participation because they
offer freedom and scope to them to use their judgment.
Suggestion schemes

Employee’s view on such matters as machine utilization, waste management, energy conservation and
safety measures are invited, and reward is given for the best suggestion. This procedure enables the
management to arouse and maintain the employee’s interests in the problems of their concern and its
management. The suggestion schemes are increasingly used by progressive management.

Informal Participation

It is more typically at work-group level, where the foreman develops the opportunity for the group of
workers to take part in a problem-solving or decision-making process. Typically, the matters on which
decisions are taken are those within the prerogatives of the foreman or supervisor.

Importance of Participation

The greatest benefit of participative management is that the employee identifies himself or herself with
the work and this leads to improved performance.

ӹ Participation tends to improve motivation because employees feel more accepted and involved in the
situation. Their self-esteem, job satisfaction, and cooperation with the management will also improve.

ӹ Reduced conflict and stress, more commitment to goals, better acceptance of a change. ӹ Employees
may also reduce turnover and absences when they begin to feel that working conditions are satisfactory
and that they are becoming more successful in their jobs.

ӹ The act of participation in itself establishes better communication, as people mutually discuss work
problems. The management tends to provide workers with increased information about the
organization’s finances and operations, and this helps employees to give better quality suggestions.

ӹ Participative management has ethical dimensions also. The ethical orientation stems from: Morality
and the impartial promotion of human welfare Recognize the inherent value and dignity of the human
being The self-worth of the individual enhances Participation relates to the mental and physical health
of employees Ethical justification for worker participation is derived from negative consequences of
hierarchical and authoritarian organizations of work.

Workers Participation in India

In India, according to the industrial policy resolution, 1956, the aim of the government in advocating
worker’s participation in management is to create a socialist society where workers share the
managerial powers. In second Five-year plan, the purpose of worker’s participation was defined as
follows

: ӹ Increasing productivity for general benefit of the enterprise, employees and community

; ӹ Giving employees a better understanding of their role in the working of the industry and of the
process of production
ӹ Satisfying the workers urge for self-expression, thus leading to industrial peace, better relations and
increased cooperation ӹ The Government of India accepted that the representatives of workers should
be taken on the board of directors of public sector enterprises. The worker director (representative of
the workers) is to be elected by all the workers of the company through a secret ballot.

ӹ Another tool that has become popular as a form of participative management in an organization is
the employee stock option Plan (ESOP). ESOPs offer emotional and financial ownership to the
employees.