WORKERS' PARTICIPATION IN MANAGEMENT

The concept of worker’s participation in management is considered as a mechanism where workers have a
say in the decision-making process of an enterprise.

DEFINITION:
According to Davis, “It is a mental and emotional involvement of a person in a group situation which
encourages him to contribute to goals and share responsibilities in them.
Workers’ Control --->Joint Management --->Joint Consultation

Work Place Consultation ---> Management Supremacy.

In this continuum, workers’ control represents one extreme which suggests concentration of all powers in
workers, and management supremacy represents the other extreme, which implies a zealous defence of
managerial prerogatives.

FORMAL Vs INFORMAL

The important forms in which workers could participate in management are collective bargaining, joint
decision-making, consultation and information sharing.

They may take the form of formal organisations like Works Committees, Joint Management Councils or an
informal system, for instance, a supervisor consulting a worker before taking any decision in which the
latter is interested.

DIFFERENT VIEWS

The workers expect that Workers’ Participation in Management schemes will lead to the achievement of
security of employment, better wages, bonus etc.

The employers’ interest is in the maximization of profit through increased production and minimization of
expenditure.

The government expects the scheme to bring about closer association between labour and management and
industrial peace.

This variance in the objective of participation as perceived by the three sectors, that is responsible for the
unsuccessful functioning of schemes of participative management.

OBJECTIVES OF WORKERS’ PARTICIPATION IN MANAGEMENT:

• To promote increased productivity for the advantage of the organisation, workers and society at large;

• To provide a better understanding to employees about their role and place in the process of attainment of
organizational goals;

• To satisfy the workers’ social and esteem needs; and

• To strengthen labour management co-operation and thus maintaining industrial peace and harmony.

• To develop social education for effective solidarity among the 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 resource.

• To build the nation through entrepreneurship and economic development.

ESSENTIAL CONDITIONS FOR SUCCESSFUL WORKING OF WPM

• The attitude and outlook of the parties should be enlightened and impartial so that a free and frank
exchange of thoughts and opinions could be possible.

• Both parties should have a genuine faith in the system and in each other and be willing to work together.

• The experiment of labour participation in management must be given a wide publicity in order that the
idea of participation is ingrained in the minds of those who are to implement the scheme.

• Participation should be real.

• Objectives to be achieved should not be unrealistically high, vague or ambiguous but practicable of
achievement and clear to all.

• Form, coverage, extent and level of participation should grow in response to specific environment,
capacity and interest of the parties concerned.

• Participation must work as complementary body to help collective bargaining, which creates conditions
of work and also creates legal relations.

• Institutional participation should be discouraged but such participation should be encouraged through
changes in leadership styles, communication process, and inter-personal and inter-group relations.

• There should be a strong trade union, which has learnt the virtues of unit and self-reliance so that they
may effectively take part in collective bargaining or participation.

• Multiple unions in one enterprise should be restricted by legislative measures. Similarly, there should be
no multiplicity and duplicacy of bipartite consultative machinery at the plant level.

• A peaceful atmosphere should be there wherein there are no strikes and lock-outs, for their presence ruins
the employees, harms the interest of the society, and puts the employees to financial losses.

• Programmes for training and education should be developed comprehensively. For this purpose, “labour
is to be given education not to the head alone, not to the heart alone, not to the hands alone, but it is
dedicated to the three; to make the workers think, feel and act.”

• Progressive personnel policies should ensure growth of individual workers within industry and proper
policies should exist for selection, promotion, compensation, rewards and discipline.

• Management should be prepared to given all information connected with the working of the industry and
labour should handle that information with full confidence and responsibility.

• The workers should become aware of their responsibilities. The leaders should initiate this in them.
• The follow-up action on the decisions of the participating forums should be ensured.

• Effective two-way communication is a must for the success of the programme.

FORMS OF WPM
• Works Committee
• Joint Management Councils;
• Joint Councils;
• Shop Councils; and
• Unit Councils.

FIVE INTERPRETATIONS OF PARTICIPATION:

Informative participation:
It refers to sharing of information with workers regarding economic position of the firms, state of the
market, production and sales programme, work methods, balance sheet, expansion plans, etc. Here the
workers have no right to scrutinize the information provided by management.

Consultative participation:
This involves a higher degree of sharing of views of the workers and giving them a chance to express their
views on various issues concerning work, workplace, working conditions, market standing, financial status,
etc. Here the joint council of workers and management works as an advisory body only. management may
or may not accept the suggestions.

Associative participation:
Here the council is not purely advisory. The management is under a moral obligation to accept and
implement the unanimous decisions of the council.

Administrative participation:
Here there is a greater degree of sharing authority and responsibility of managerial work, allowing workers
a little more autonomy in exercising administrative and supervisory powers in respect of welfare, safety,
benefits, rewards, etc.

Decisive participation:
This is the highest form of participation where decisions are taken jointly on matters relating to production,
safety, welfare, etc.