WPM

Worker’s participation is a system where workers

and management share important information
with each other and participate in decision taking.
 WPM encompasses the
following:-
• It provides scope for employees in decision-
making of the organization.
• The participation may be at the shop level,
departmental level or at the top level.
• The participation includes the willingness to
share the responsibility of the organization by
the workers.
• It is conducted through the mechanism of forums
which provide for association of workers
representatives.
 Definition of WPM

A system of communication
and consultation, either formal
or informal, by which
employees of an organization
are kept informed about the
affairs of the undertaking and
through which they express
Participation refers to the
mental and emotional
involvement of a person in a
group situation which
encourages him to contribute
to group goals and share the
responsibility of achievement.
Participation in Management gives
the worker a sense of importance,
pride and accomplishment; it
gives him the freedom of
opportunity for self-expression; a
feeling of belongingness with the
place of work and a sense of
workmanship and creativity.
 Objective
• To elevate worker’s status in
industry.
• To promote democratic
practice.
• Increase productivity with joint
efforts.
• Promote cordial relations.
 Importance of WPM

• Mutual understanding
• Higher productivity
• Industrial harmony
• Industrial democracy
• Less resistance to change
• Creativity & Innovation
 Forms of participation
• Consultative participation
• Informative participation
• Administrative participation
• Associative participation
• Decision /Decisive participation
Ownership participation
 1. Consultative
• Involves a high degree of sharing of
views of the members and giving
them an opportunity to express their
feelings.
• Members are consulted on matters
such as:-
– Welfare amenities (work, health)

– Adoption of New Technology

– The problems emanating from it

 2. Information

• It ensures that employees are able to receive

information and express their views pertaining to the
matters of:-
– General economic situation.
– The state of market, production & sales
programmes.

– Organisation & general running of the

undertaking.
– The annual balance sheet & profit & loss account
statement & connected documents with explanations.
 3. Administrative
• Involves a greater degree of sharing of
authority and responsibility of the
management functions.
• It ensures greater share of workers’
participation in discharge of managerial
functions.
• Employees take part in decisions, which were
already taken by the
• Members are given little for autonomy in the exercise of
administrative and supervisory powers with regard to –
– Welfare measures

– Supervision of safety measure

– Operation of vocational training & apprenticeship schemes

– Preparation of schedules of working hours, breaks,

holidays
 4. Decision
• Highest form of participation.
• Maximum delegation of authority and
responsibility of managerial function.
• Decisions mutually taken.
• Matters concerned are
– Economic,
– Production
– Welfare
– Financial and
– Administrative policies
 5. Associative
• Extension of consultative
participation
• Management here is under the
moral obligation to accept and
implement the
unanimous(agreed) decisions of
the employees.
• Under this method the managers
 Levels of Participation

1. Collective Bargaining
2. Works Committees
3. Shop / Department Council
4. Joint Councils
5. Board Representations
6. Workers Ownership of Enterprise
7. Quality Circles
8. Kaizen
 1. Collective Bargaining

ILO has defined,

"Collective bargaining as, negotiation a bout working conditions and
terms of e mployment between an employer and a group of
employees or one or more employee, organization with a view to
reaching an agreement wherein the terms serve as a code of defining
the rights and obligations of each party in their
employment/industrial relations
• Collective :-because both the employer and the
employee act as a group rather than as
individuals.
• Bargaining :-
because the method of reaching an agreement
involves proposals and counter proposals, offers
and counter offers and other negotiations.
• Thus collective bargaining:
– is a continuous process which aims at establishing stable
relationships between the parties involved.

– is a collective which
process in
representatives of
both the
management and
employees
participate.

– not only involves the bargaining agree ment, but also

involves the implement ation of such an agreement.
democratic way of life in industry
 Loopholes in Collective Bargaining
• The process of CB cannot be called WPM in its strongest
sense as in reality;
– CB is based on the crude concept of exercising power
for the benefit of one party.
– WPM, on the other hand, brings both the parties
together and develops appropriate mutual understanding
and
 2. Works Committees

• Under the Industrial Disputes Act, 1947, every establishment

employing 100 or more workers is required to constitute a works
committee
• It consists of equal number of representatives from the employer and
the employees.
• The main purpose of this committee is to provide measures for
securing and preserving amity and good relations between the
employer and the employees.
 Functions of Work Committee

• Works committee deals with matters of day-to-day functioning at the

shop floor level. Works committees are concerned with:
– Conditions of work such as ventilation, lighting and sanitation.
– Amenities such as drinking water, canteens, dining rooms,
medical and health services.
– Educational and recreational activities.
– Safety measures, accident prevention mechanisms
etc.
 Loopholes in Works Committees

• Lack of competence and interest on the part of workers’

representatives.
• Employees consider it below their dignity and status to sit
alongside blue-collar workers.
• Lack of feedback on performance of Works Committee.
• Undue delay and problems in
 3. Shop / Department Council

• Government of India on the 30thof October 1975

announced a new scheme in WPM.
• In every Industrial establishment employing 500 or
more workmen, the employer shall constitute a shop
council.
• Shop council represents each department or a shop
in a unit.
• The employers’ representatives will be nominated by the
management and must consist of persons within the
establishment.
• The workers’ representatives will be from among the
workers of the department or shop concerned.
• The total number of employees may not exceed 12.
• All decisions taken will be
 Functions of Shop Council
• Assist management in achieving monthly production
targets.

• Improve production and efficiency, including elimination of

wastage of man power.
• Study absenteeism in the shop or department and recommend
steps to reduce it.
• Suggest health, safety and welfare measures to be adopted for
smooth functioning of staff.
Look after physical conditions of
 4. Joint Councils
• The joint councils are constituted for the whole unit, in every
Industrial Unit employing 500 or more workers.
• Only such persons who are actually engaged in the
unit shall be the members of Joint Council.
• A joint council shall meet at least once in a quarter.
• The chief executive of the unit shall be the chairperson of
the joint council.
• The vice-chairman of the joint council will be nominated
by the worker
• It for a period of two years.
• The decisions will be binding on both parties and will be
implemented within one month.
• In 1977 the above scheme was extended to the PSUs
like commercial and service sector organizations
employing 100 or more persons.
• The organizations include hotels, hospitals, railway and
road transport, post and telegraph offices, state
 Functions of Joint Council

• Fixation of production norms

• Work planning
• Achieving production targets
• Training
• Reward policy
• Creative suggestions
• Health
• Security
 5. Board Representation

• This would be the highest form of industrial democracy.

• The workers’ representative on the Board can play a useful role in
safeguarding the interests of workers.

• The worker can serve as a guide and a control element.

• The worker can prevail top management not to take measures

 Loopholes of Board Representation

• Focus of workers’ representatives is different from the

focus of the remaining members of the Board
• The worker tends to become alienated from the
workers.
• The worker may be less effective with the other members
of the Board in dealing with employee matters.
• Due to the differences in the cultural
,educational backgrounds and behaviour, the
employees’ representative may feel inferio r to the other
members, and may feel suffocated. Hence, his or her role
as a
 6.Worker’s Ownership Of Enterprise

• This involves making the workers’

shareholders of the company by inducing them to
buy equity shares.
• In many cases, advances and financial assistance in the
form of easy repayment options are extended to
enable employees to buy equity shares.
Examples of this method are available in the
manufacturing as well as the service sector.
• Advantage: Makes the workers committed
to the job and to the organization.
 7.Quality Circles(QC)

• It consists of seven to ten people from the same work

area who meet regularly to define, analyze, and solve
quality and related problems in their area.
• These circles require a lot of time and commitment on
the part of members for regular meetings, analysis,
brainstorming etc
• Most QCs have a definite life cycle – one to three years.
Few circles survive beyond this limit either because they
loose steam or they face simple problems.
• QCs can be an excellent bridge between
 Advantages of QC

• 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
 8. Kaizen

• It is also called as “Continuous Improvement”

• It is a policy of constantly introducing small incremental
changes in a business in order to improve quality and/or
efficiency.
• This approach assumes that employees are the best people
to identify room for improvement, since they see the
processes in action all the time.
• A firm that uses this approach
 Features of Kaizen
• Improvements are based on many, small changes rather than the radical
changes that might arise from Research and Development
• As the ideas come from the workers themselves, they are less likely to be
radically different, and therefore easier to implement
• Small improvements are less likely to require major capital investment than
major process changes
• The ideas come from the talents of the existing workforce, as opposed to
using R&D, consultants or equipment – any of which could be very expensive
• All employees should continually be seeking ways to improve their own
performance
 WPM in India
• In 1920 Mahatma Gandhi had suggested that
workers contributed labour and brains, while
shareholders contributed money to enterprise,
and that both should, therefore share in its
prosperity.
• The influence of Mahatma Gandhi bore fruit and
for the first time Joint Consultation was adopted in
the Cotton Textile Industry.
• Workers’ participation in Management Bill, 1990
was introduced in Parliament which provided
scope for upliftment of workers.
• The Industrial Policy Resolution had suggested that
labour should be consulted in all matter concerning
industrial production & works committees .
• The Joint Management Councils were
established in 1950 which
 Reasons for failure of WPM in India:
• Lack of initiative & interest.
• Ideological differences.
• Delay in implementation.
• Political unionism.
• Narrow scope of participative forum with limited issue.
• Not decisive participation.
• Employers resist the participation of
workers.
• Dual roles of workers’ spokesman and a co-manager.
• “Born to serve and not to rule”.
• Lack of lower-level participation.
• Unwillingness of the employer to share powers
 Decisions affecting WPM
Three groups of managerial decisions affect the workers of
any industrial establishment and hence the workers
must have a say in it
• Economic Decisions – Economic Decisions like methods of
manufacturing, automation, shutdown, lay-offs, mergers.
• Personnel Decisions – Personnel Decisions like
recruitment and selection, promotions, demotions,
transfers, grievance settlement, work
 Workers' Participation at

TISCO

• Since Tata Iron and Steel Company 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 (JD
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, imp rove productivity and discipline
and econo mize 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
• In order to ensure that these committees did not overlap the
functions of other committees, separate task groups were formed.
• Special courses were offered to prepare both management and union
representatives to effectively utilize the facility.
• TISCO's experience with workers' participation has been satisfactory.
From 1957 to the middle of 1972 JDCs
 Workers' Participation at BHEL

• BHEL stands for “Bharat Heavy Electrical Limited”

• According to BHEL, WPM is the process, by which authority
and responsibility of managing industry are shared with workers.
 Significance of WPM in BHEL

• To improve the efficiency of enterprise.

• To establish harmonious industrial
relation.
• To attain industrial peace and harmony.
• To give the workers and
• To increase the productivity level with mutual
understanding.
• Easy to implement the change may
by possible by WPM.
• Information sharing and decision making.
• Improving the self control degree.
 Factors considered by BHEL in WPM

• Subject matter of • Industrial

participation practices
• Level of • Past experience data
participation • Degree of
• Time factor possibility
• Extend of • No. of workers
participation • Methods of
• Significance of
 BHEL’s principle for WPM

• Experience
• Possibilities
• People building and mutual development.
 BHEL’s ways & methods of WPM
• Maximum adopt the method of
:-
– QC
Quality Circle
– TQM
Total Quality Management
 Pre-requisites for successful participation:-
• Strong & Democratic union.
• Mutually agreed objectives which should be clearly
defined & complementary.
• Feeling of participation at all levels.
• Favourable attitude of all.
• Training of participants is essential.
• Prompt action & feedback.
• Free flow of communication and information.
• Participation of outside trade union leaders to be
avoided
• Strong and effective trade unionism.
• Workers’ education and training.
• Lack of positive attitude.
• Trade unions and government needs to work in this
area.
• Trust between both the parties.
 How can WPM be more effective???
• Employer should adopt a progressive outlook. They should
consider the industry as a jointendeavour in which workers
have an equal say. Workers should be provided and
enlightened about the benefits of their participation in the
management.
• Employers and workers should agree on the objectives of
the industry. They should recognize and respect the rights
of each other.
• Workers and their representatives
• There should be effective communication between
workers and management and effective consultation
of workers by the management in decisions that have
an impact on them.
• Participation should be a continuous process. To begin
with, participation should start at the operating level of
management.
• A mutual co-operation and commitment to participation
must be developed by both management and labor.