CHAPTER – I

INTRODUCTION:-

The concept of the WORKERS PARTICIPATION IN MANAGEMENT DECISIONS is

considered as a mechanism where workers have a say in the decision -making process of an
enterprise.

DEFINITION:-

The concept of Workers 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 work towards the realization of a common objective.

According to DAVIS, “It is a mental and emotional involvement of a person in a group of

situations which encourages him to contribute to goals and share responsibilities in them” Within
orbit of this definition, a continuum, of men management relationship can be conceived.

Workers’ controls →Joint management →Joint consultations

Workers Place Consultations →Management Supremacy

“Workers Participation in Management decisions is a resounding phase, bridging the past and
future. It echoes the millennial vision of nineteenth century thinkers while heralding the
evolution of new forms of industrial organization twentieth century pressures. The word
‘Workers participation’ is plentifully supplied with ideas, instructions and opinions.
Formal Vs. Informal:-
The forms of Workers Participation in Management depend on the differences in the levels of
management, the subject-matter of participation, the strength of the union and the pattern of
industrial relations. The important forms in which workers could participate in management are
collective bargaining, joint decision-making, consultations, and information sharing. They may
take the form of formal organizations like works committees, Joint Management councils or an
informal system, for instance, a supervisor consults.

CONCEPT:-
Criteria for selecting of Units for setting up of JMCs:-
The sub-committees of the Fifteenth Indian Labor Conference which selected 48 units for
introducing of criteria for selecting the units:
 The understanding should have a well-established, strong trade union functioning.
 There should be a readiness in the parties between employers and workers union to try
out experiment in a spirit of willing cooperation.
 The size of the undertaking should be at least 500 workers.
  The employer in the private undertaking should be a member of one of the leading
employers’ organization; and similarly the trade union be related to one of the central
federations.
 The company should have a fair record of industrial relations.

Functions of JMCs:
I. To be consulted on matters like standing orders, retrenchment, rationalization, closure,
reduction of operations etc..
II. To receive information, to discuss and offer suggestions.
III. To shoulder administrative responsibilities like maintaining welfare measures, safety
measure, training schemes, working hours, payment of rewards.
 OBJECTIVES OF THE STUDY
 To study the effectiveness of workers participation in decisions at shop level in APSRTC
Vijayawada.
 To identify the relations between management & trade unions in APSRTC.
 To understand that in what the areas workers can participate in APSRTC.
 To understand the problems of the APSRTC workers in the participative management
and give appropriate suggestions.
NEED FOR THE STUDY:-

Workers participation in management decisions is an important to both organization and

workers.
 It will be helpful to the organization to motivate the workers to get good suggestions and
profitable productivity.
 To create a feeling to workers that they are not only worker they also partner to develop
the organization.
 The need of this study on workers participation in management decisions is to know the
type of participation schemes followed by the unions and management.
 This study provides suggestions and benefits to organization as well as workers.
 This study is therefore taken up to know the various workers participation in the
management decisions in APSRTC.
SCOPE OF THE STUDY:
The forms of workers participation in management vary from industry to industry and from
country to country. The important forms are labor management consultations and cooperation,
Joint consultation and Model of Participation (U.k.), Union Management of Co-operation
(U.S.A), Codetermination scheme (West Germany),
Forms of Workers Participation in Management are:
I. Works Committee.
II. Joint Management Councils.
III. Joint councils.
IV. Shop Councils.
V. Unit Councils.

(I) Works committees:

The industrial disputes Act, 1949 provides for the setting up of works committees as a scheme of
workers participation in management which consists of representatives of employers and
employees. The Act provides for these bodies in every undertaking employing 100 or more
workmen. The aim of setting up these bodies to promote measures for maintaining harmonious
relations in the work place and to sort out differences of opinion in respect of matters of common
interest to employees and employers.

Functions:-
These works committees are consultative bodies. Their functions include discussions of
conditions of work like lighting, ventilation, temperature etc. amenities like water supply for
drinking purpose, provision of canteens, medical service etc. It shall be the duty of the works
committee to promote measures for securing and preserving amity and good relations between
the employers and employees and to comment upon matters of their common interest or concern
and endeavor to reconcile any material differences of opinion in respect of such matters.

Structure:-
The works committees have, as office bearers, a president, a Vice-President, a secretary and a
joint secretary. The president is a nominee of the employer and the Vice-President is the workers
representative. The tenure of these bodies is 2 years. The total strength of these bodies should not
exceed 20. The employee’s representatives have to be chosen by the employees.
(II). Joint Management Councils (JMCs):
The second Five year Plan recommended the setting up of joint councils of management
consisting of representatives of workers and management. The Government of India deputed a
study group (1957) to study the schemes of workers participation in management in councils like
U.K., France, Belgium and Yugoslavia.

Objectives:
The objectives of Joint Management Councils are as follows
I. To increase the association of employees and employers thereby promoting cordial
industrial relations;
II. To improve the operational efficiency of the worker;
III. To provide welfare facilities to them;
IV. To educate workers so that they are well equipped to participate in these schemes; and
V. To satisfy the psychological needs of worker. a must for the success of the programme.
The shorter is the time for communication, the greater is the probability of correct
interpretation.

(III). Joint Councils:

The joint councils are for the whole unit and its membership remains confined to those who are
actually engaged in the organization. The tenure of the joint councils is for two years. The chief
executive of the unit becomes its chairman. Workers members of the councils nominate the
Vice-Chairman. The joint councils appoint the Secretary. The Secretary is responsible for
discharging the functions of the councils. The joint councils will meet once in four months, but
the periodically of the meetings varies from to unit to unit, it may be once in a month, quarter
etc. The decisions taken at the join council meetings are by the process of consensus and the
management shall implement the decisions within one month.

(IV). Shop Councils:

The shop council represents each departmental or a shop in an unit. Each shop council will
consists of an equal number of representatives of employers and workers. The employers
representatives will be nominated by the management and must consist of persons from within
the unit concerned. The member of each council may be determined by the employers in
consultation with the recognized union. The total number of members, however, may not
generally exceed twelve.

Features of Shop Council:-

 Each council shall consist of an equal number of representatives of employers and
workers.
 The council shall meet as frequently as in necessary and that at least once in a month.
 The Chairman of the shop council shall be a nominee of the management; the worker
members of the council shall select a Vice-Chairman from among themselves.
(V). Unit Councils:
Encouraged by the success of the scheme in manufacturing and mining units, a new scheme of
workers participation in management decisions in commercial and service organization in the
public sector, having large-scale public dealings, was announced on 5th January, 1977.The
scheme envisaged setting of Unit Councils in units employing at least 100 persons. The
organizations include Hotels, Restaurants, Hospitals, Air, Sea, Railway and Road services. The
scheme provides for unit level councils. These councils are to eliminate factors which hamper
operations and improve methods of operation.

Features of the Unit Councils:

 A unit level council consisting of the worker and management of the organization/service
may be formed generally in each unit, employing 100 or more workers to discuss day-to-
day problems and find solutions; but wherever necessary a composite council may be
formed department wise to suit the particular needs of an organization/service.
 The management’s representatives should be nominated by the management and should
consist of persons from the unit concerned.
 The council shall meet as frequently as is necessary but at least once in a month.
 Every decisions of a unit council shall be implemented by the parties concerned within a
month, unless otherwise stated in the decisions itself a worker before taking any
decisions in which the latter is interested.

IMPORTANCE:

Importance of Workers Participation in Management Decisions:

 To promote increased productivity for the advantage of the organization, workers and
society at large.
 To provide a better understanding to workers about their role and place in process of
attainment of organization goals.
 To satisfy the workers social and esteem needs.
 To strength labor management co-operation and thus maintain industrial peace and
harmony.
 To develop social education for effective solidarity among working community and for
tapping latent human resources.
 An ideological point of view to develop self-management in industry.
 An instrument for improving efficiency of the company and establishing harmonious
industrial relations.
 To build the most dynamic human resources.
 To build the nation through entrepreneurship and economic development.
 The inherent conflicts between employees and management.
 The general belief that the workers are inferior to management
Working of Workers Participation in Management decisions in India.

The highlights of the Indian experience, with the regard to workers participation in management
is that, the schemes have although been initiated by the government. Taking into account the
economic, political and Worker/trade union situation in India, the Government’s initiatives for
participative management is justified. The global experience also stands testimony to such
initiative.
The trade unions in India who have demanded for nationalization of industry that culminate in
people’s participation in the economic activity have been conspicuous by their silence with
regard to workers participation in the industrial activity.