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Workers Participation in Management

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INTRODUCTION

The word participation means the meaningful interaction of human being with people they are concerned to enhance their sense of being in control of their immediate environment. Participation enables ones to perform better. WPM crystallises industrial democracy means management of an industrial unit by the people for the people. Collective bargaining, empowerment and WPM are collectively known as participative management, where as the purposes democracy serves in government are served by WPM.
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MEANING OF WPM

Workers participation in management means giving scope for workers to influence the managerial decisionmaking process at different levels by various forms in the organization. WPM is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of an undertaking and through which they express their opinion and contribute to management decisions. Joint effort of labour and capital to find out solutions and remedies of problems .
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DEFINITIONS
According to IAN CLEGG Cooperation implies a situation where workers representatives are, to some extent, involved in the purpose of management decision making. According to KEITH DAVIS workers 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 in responsibility of achieving them. 4/29/12

GOALS/OBJECTIVE OF WPM

In India, objective government advocating


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the of in for

IMPORTANCE OF WPM

Mutual Understanding Higher Productivity Industrial Harmony, reduced conflicts Industrial Democracy (right of self expression and opportunity to communicate views on policies, worker as responsible partner in decision making) Reduced Resistance to change Creativity and Innovation Human resource development
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Forms/level/degree of Participation Informative participation: Information sharing only, e.g. economic conditions , production etc. Consultative participation: Workers are consulted for the matters which are relate to them. Take only views acceptance is depend upon management. Associative participation: Advanced form of informative participation. Management under obligation to acknowledge, accept and implementation.
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Administrative participation: Decisions already

MODES OF PARTICIPATION
WORKS COMMITTEE: It consists of equal number of representatives of both employers and workers. It meets frequently for discussion on common problems of the workers and the management. After discussion, joint decisions are taken and such decisions are binding on both the parties. Matters like wage payment, bonus, training, discipline etc are discussed in such meetings. Click to edit Master subtitle style WORKER-DIRECTOR: In this, a workers representative is being given a seat on the board of directors. In countries where the trade unions are very strong as in Britain and U.S.A., the trade unions definitely reject the idea. A worker-director would be in minority and thus his views would carry little weight with the board. Since the worker-director is the representative of a trade union, he will always take a biased for the benefit of 4/29/12

JOINT MANAGEMENT COUNCIL: It involves setting up of joint committees represented by the workers and the management to discuss and give suggestions for improvement with regard to matters of mutual interest. The decisions of such committees are not binding on either party, yet they are implemented as they are arrived at by mutual consultations. The subject-matter of joint consultations 4/29/12

CO-PARTNERSHIP: In this, workers are allowed to purchase shares of the company and thus become its co4/29/12

Direct Participation

Team Working Quality Circles Attitude Surveys Suggestion Scheme

Indirect (representative) Participation


Collective Bargaining
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Works Councils

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WORKERS PARTICIPATION IN MANAGEMENT IN INDIA


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WORKS COMMITTEES (1947)

The industrial disputes act, 1947, provides for the setting up of works committee consisting of representatives of management and employing 100 or more workmen.
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FUNCTIONS: Conditions of work such as ventilation, lighting, temperature and sanitation. Amenities such as drinking water, canteen, dining rooms, crches, rest rooms, medical and health 4/29/12 services

Educational and recreational activities, such as libraries, reading rooms, cinema-shows, sports, games, community welfare and celebrations. Promoting thrift and savings. Implementation and review of decisions arrived at meeting of works committees. The national commission on labour (1969) pointed out that the effectiveness of the works committees depends upon the following factors: A more responsive attitude on the part of the management. Adequate support from the unions. Proper appreciation of the scope and functions of the works committees. Whole-hearted implementation of the 4/29/12

Items excluded

Wages and allowances Bonus Profit sharing Work load fixation Retrenchment or layoff Housing services Retirement benefits, PF , gratuity etc. Exclusion of imp items
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Reasons for failure of WC


Lack of competence of representatives

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MANAGEMEN T COUNCIL (1958) JMCs represent a


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FEATURES OR FUNCTIONS of JMC

1. Consultative Functions -council consulted by management on :

Administration of standing orders New methods of production Retrenchment Closure, reduction in or cessation of operation

2. Information receiving and suggestion making functions:

General economic situation. The state of market, production and sales programmes. Organisation and general running of the undertaking.
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3.Administrative functions :

Welfare measures Supervision of safety measures Operation of vocational training and apprenticeship schemes Preparation of schedules of working hours , breaks , holidays

Payment of rewards for valuable 4/29/12 suggestions

Workers Directors(1970)

The idea of worker-directors has gained some support in India, particularly in public sector undertakings and nationalized organizations. The few undertakings where it has been implemented are the Hindustan Aeronautical and 14 nationalized banks. Worker director is elected by the most representative TU Reasons for failure Wds were ill equipped to understand the intricacies of board level matters
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Worker Participation scheme(1975)

SHOP COUNCILS For each dept or shop floor, establishment having more than 500 workmen Each council consists of equal number of representatives of employers and workers. The scheme was introduced as a part of the 20 point programme

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FUNCTIONS: Assist management in achieving monthly/yearly targets. Improvement of production, productivity and efficiency, including elimination of wastage and optimum utilisation of machine capacity and manpower. Specifically identify areas of low productivity and take necessary corrective steps at shop level. To study absenteeism in the shop/department and recommend steps to rectify the situation. Safety measures. Assist in maintaining general discipline in the shop/department. Physical conditions of working, such as, lighting, ventilation, noise, dust etc and reduction of fatigue. Welfare and health measures to be adopted for efficient running of the shop/department
4/29/12 Ensure proper flow of adequate two-way communication between the

JOINT COUNCILS Operate for industrial unit as a whole, more than 500 workmen The chief executive of the unit is the chairman of the JC Meets at least once in quarter Decision on the basis of consensus Functions: Optimum production Matters not solved in shop council or having bearing on another shop/dept 4/29/12

WPM at TISCO

TISCO was the pioneer in introducing WPM in India. The WPM set up at TISCO in 1957 consists 3-tier system

Joint departmental councils (JDC) Joint work councils (JWC) Joint consultative council of management (JCCM)

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Joint departmental councils (JDC) Set up at departmental level Study operational problems Promote productivity Welfare, safety provisions, improvement in working conditions At present, 40 JDCs at TISCO Joint work councils (JWC) Review the work of JDCs, suggestion, safety, canteen managing committee
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Joint consultative council of management (JCCM)

PARTICIPATIONOF WORKERS IN MANAGEMENT BILL, 1990

To overcome the failure for previous WPM schemes, government introduced a Bill in the parliament on 25th May. Three-tier WPM in all industrial establishments. Formulation of scheme specifying criteria regarding nomination of representatives from workers. The principle of secret ballot for determining the representation of workers on the shop floor and establishment level councils. Rules for monitoring the scheme. Deletion of section 3 of the Industrial Dispute Act, 1947. Rules for appointment of inspector. Imprisonment up to 2 yrs or a fine up to Rs. 20,000 or both for 4/29/12 contravention of the provisions.

Factor responsible for failure of participative schemes in India

Lack of positive attitude of the management Lack of initiative of trade union Ideological differences regarding the degree of participation

Workers attitude & illiteracy Political unionism Improper implementation

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Benefit of workers participation in management


KEITH DAVIS(1967): claims that participation has helped to produce one or more of the following.
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BENEFITS:

Higher productivity Employees satisfaction Improved quality of work


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Team work

MAKING WPM EFFECTIVE

Management and workers must understand clearly the objectives of such participation. Management should not take it as an imposed liability and workers should not use it for expressing their grievances and demands only. The workers must have a strong trade union with enlightened leadership. They 4/29/12

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