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Workers' Participation in Management

This file points out what workers participation in management means, the objectives, forms of wpm, failures and the measures to improve workers participation in management.

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neha
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148 views

Workers' Participation in Management

This file points out what workers participation in management means, the objectives, forms of wpm, failures and the measures to improve workers participation in management.

Uploaded by

neha
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Redistribution of power between

management and workers in the direction


of industrial democracy

Unlike in the past, the cumulative


experience, the changes in the economy, and
the changing demographics at the workplace
are gradually bringing about a certain
attitudinal change among employers and
workers and their representatives to seek
voluntary
arrangements
for
joint
consultation and cooperation to further
common interests of industrial and social
progress and quality of work life

Decision taking is an autonomous individual


action whereas Decision making is a group process,
based on consultation and communication with
the concerned members of the group

To illustrate, sometimes managers give an


opportunity to their employees to agree with them.
Mr. Ford called for a meeting of the Board of
Directors. He opened the meeting with the
statement, Friends, I do not mind any colour
so long as it is black.

fait accompli Employees are allowed to


participate, not in making decisions, but in their
implementation

To improve the efficiency of enterprises

To inculcate positive attitude towards


organization

To attain industrial peace & harmony

To provide an acceptable status to the


worker

To develop self-management in industry

Subject-matter of participation

Level of participation

Personal traits of the participants

Extent of participation

Communication: To give & get information

Consultation: To obtain the other partys


view

Participation: To let the people concerned


to take part in decision making

Joint decision-making: Management taking


decisions together with workers/unions

Section 3 of the Industrial Disputes Act, 1947:


100 or more workers on any given day in the
preceding 12 months

Equal representation from the employer and


employees

To promote measure for securing and


preserving amity and good relations between
the employers and workmen

Their main task is to smooth away friction that


might arise between the workmen & the
management

Conditions of work such as ventilation, etc.

Amenities like drinking water, canteens, etc.

Safety and accident prevention, etc.

Adjustment of festival & national holidays

Educational & recreational facilities

Administration of welfare and fine funds

Promotion of thrift and savings

Implementation & review of decisions arrived at in


the meetings of works committees

Lack of interest among workers [trivial nature]

Lack of competence

Union feel threat to their existence

Employers feel below their dignity to sit in the


works committee meetings

Inter-union rivalry

Recommendation of these committees are


advisory in nature

Govt. should take initiative and set up JOINT


MANAGEMENT COUNCILS in selected
undertakings

The scheme should be tried initially in 50 selected


undertakings in the public & private sector

There should be only one single council for the


undertaking as a whole

The employees representatives should be nominated


by the trade union concerned, and not more than
25% of the employees representatives should be
outsiders

The size of the joint council should be restricted to


12
The joint council should meet during working hours

The council is to be consulted by the


management on administration of standing
orders, introduction of new methods of
production and closure, etc.

The council has the right to receive


information, discuss and give suggestions
on general economic situation, state of the
market, production and sales programmes,
etc.

The Joint Management Councils is entrusted


with some administrative responsibilities
like supervision of safety measures, etc.

Workers representatives are dissatisfied with their


role as decision makers in respect of welfare
activities only

Trade unions fear JMC as alternate channel

Less or no competency of workers representatives


on complex management issues

Management do not provide adequate information


to workers for aiding decision making

Middle management and supervisors are generally


hostile to workers participation

The absence of representative union has made it


difficult for the councils to work smoothly

A Joint council to operate for whole industrial


unit

The CEO is the Chairman of the unit

One of the members is appointed as Secretary

To meet at least once in a quarter

The decisions to be implemented within 1


month

A joint council to function for a period of two


years

Fixation of productivity norms of man & machine

Unsolved matters emanating from shop council

To develop skill and train employees

Schedule for working hours & holidays

Awarding of rewards for valuable & creative


suggestions

Optimum use of raw materials & other resources

General health, safety & welfare of the unit

1.
2.

3.
4.

A unit council is set up in each unit of the


organization employing 100 or more persons
to discuss day-to-day problems & find
solutions
Main Functions
To study absenteeism and suggest measures
To eliminate pilferage & other forms of
corruption
To maintain discipline
To recommend measures for Health, Safety &
Welfare

Applicable to all Central public sector undertakings


e.g., Sail, Gail, etc.,

Only one Plant Council for the whole unit

No. of Members not <6 but >18

Equal representation

No. of women employees are 15% or more, then one


women member

Tenure 3 years

CEO is the Chairman, Vice-chairman is elected from


among the workers

The council shall meet atleast once in 3 months

Industrial unit employing 500 or more workers


is required to constitute a Shop council for
each department or shop or one shop council
for more than one department or shop based
on the no. of workers

A shop council consist of equal number of


representatives from employers and
employees

The maximum no. of members in the Council


not to exceed 12

The chairman of the council is the nominee of


the management and the vice-chairman is to
be elected by the worker members amongst
themselves

Assist management in achieving


monthly/yearly production targets

Specifically identify areas of low productivity


& take corrective steps

Maintaining general discipline

Ensure smooth flow of two-way


communication

Improve the physical conditions of work such


as ventilation, lighting, etc.

Only employees working in the enterprise


Only in companies which employee at least
1,000 workers
Only if at least 51% of the workers vote in favor
of such participation by secret ballot
Worker Director will be elected by all the
workers through secret ballot
Only pre-requisite of this scheme of
participation shall be training in the business of
the company
It will be the responsibility of the Central Govt.
to organize the training programme
Worker Director participates in all the functions
of the Board

10% to 15% of shares exclusively is earmarked


for workers, called workers shares

These shares are offered to the employees in


the first instance, failing which, it will be offered
to the existing shareholders or the public

Companies can give loan to employees for


subscribing to these shares to the tune of 12
month wages or Rs.12,000 whichever is lower

This scheme however, has not found favor with


the industries in India

Ideological differences

Failure to imbibe the spirit of participation

Too many participative forums

Lack of strong Trade unionism

Unhappy industrial relations

Illiteracy of workers

Non-co-operative attitude of working class

Delays in the implementation of the decisions of


participative bodies

Congenial environment

Avoidance of overlapping of schemes

Mutual faith in the participative system

Participation in management must be given wide


publicity

Participation should be real

Crystal clear & realistic objectives should be set

Effective communication

Mechanism for speedy implementation of decisions

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