Workers participation in management/ Labour management Cooperation Prof. Hiteshwari Jadeja

Worker ’ s participation in management Worker ’ s participation is a system where workers and management share important information with each other and participate in decision taking.

Definition “ Better participation and greater responsibility in the decision making process on the part of general workers would perhaps tend to develop in them organizational loyalty, confidence, trust, favorable attitude towards supervisors, and a sense of involvement in the organization. Schemes of worker ’ s participation in management among other measures or industrial reform, are expected to democratize the industrial milieu, and ensure egalitarianism in the process. ” G.D.H. Cole

Features of WPM Formal involvement of members Participation in decision making Consequence sharing Application of upward control Joint and continuous process

Objectives of WPM Greater employee satisfaction Greater responsibility Mutual cooperation Establishing democracy Developing an effective communication system Facilitating changes

Levels of WPM Lowest level of participative management Medium level of participative management Highest level of participative management

Achieving WPM

Workers Participation in Management in India The workers participation in management is not new even though it got encouragement only after independence. In 1920 Mahatma Gandhi, observed “Employees should not regard themselves as sole owners of mills and factories of which they may be legal owners. They should regard themselves trustees.

In India workers participation has been introduced in three forms : 1. The Workers Committees 2. Joint Management Councils 3. Shop Councils 4. Joint Councils FORMS OF WPM

Works Committees The first labour management association started in 1947 with the passing Industrial Disputes Act. The Act provides that in the case of any industrial establishment in which 100 or more workers are employed on any day in the preceding twelve months, the appropriate government may be general or social order require

The employees to constitute in the prescribed manner a Works Committee in the establishment. The committee was expected to discuss matters of common interest and to maintain cordial relations between workers and employees. The response to works committees was encouraging in the beginning.

But, in spite of their large number the experience of these committees was not very fruitful.

Reasons for failure of works committees The workers were not satisfied with the functions assigned to the committees. They tendency of employers taking some matters to these committees just to by pass trade unions created a suspicion in the minds of workers leaders. Inter unions rivalries were also responsible for the failure of these committees.

The casual approach of employees towards these committees made them ineffective. The recommendations of these committees are advisory in nature. The workers show less interest in the working of these committees.

Joint Management Councils Joint Management council was a voluntary body. Its introduction was left solely to the discretion of employers and employees. These councils will consist of equal number of representation of workers and management will not exceed twelve.

Objectives of JMC Promoting cordial relations between management and workers Developing understanding and trust between them Augmenting productivity substantially Securing better welfare and other facilities Training them to understand and share the responsibility

The councils functions were divided as:- Information sharing. Consultative. Administrative. The council has the right to receive information, discuss and give suggestions on general economic situation, market production, general running of the unit,etc.

The councils suffered the following problems: The workers representatives were not satisfied with their role in councils. Management are not prepared to supply sufficient information to councils. The trade union leaders feel that council would weaken their hold over workers. The absence of representative unions made it difficult for the councils to work smoothly.

Shop Councils and Joint Councils A new scheme for workers participation in management was adopted in october The scheme was voluntary in nature. It covered all manufacturing and mining industries employing 500 or more persons. The scheme provided for setting up of shops councils at the plant level.

Shop Councils There will be a shop for each department or one council for more departments considering the number of workers employed there. The representatives of employees will be nominated by the management and must be from the unit concerned. The number of members in the council may be decided by management in Consultation with recognised unions.

All decisions of the council must be based on consensus but not by voting. Management has to implement the decisions within one month. The term of shop council will be two years. The chairman of the council will be the nominee of management and vice-chairman shall be elected by working members amongst themselves.

Functions of Shop Councils are:- Assist management in achieving monthly/yearly targets. Elimination of wastage and optimum utilization of machine capacity and manpower. To study the causes of absenteeism in the department and suggest measures to eliminate it. Safety measures.

Assistance in maintaining general discipline in the department. Physical conditions of work such as lighting, ventilation,noise, dust,etc.reduction of fatigue. Welfare measures to be adopted for sufficient running of department/shop. Ensure proper communication between management and workers reporting the

Joint Councils There was to be a joint council for every unit employing 500 or more workers.

Features :- The members of the council must be actually engaged in the unit. The term of the council will be two years. The chief executive of the unit will be the chairman of and vice-chairman will be nominated by worker members. It shall meet at least once in a quarter.

The decisions of the council will be based on consensus and not on voting. The decisions will be binding on both parties and will be implemented within one month.

Functions:- Optimum production, efficiency and function of productivity norms of man and machine for the unit as a whole. Functions of a shop council which have a bearing on another shop or the unit as a whole. Matters remaining unresolved by shop council.

The development of skill of workmen and adequate facilities for training. Preparation of schedules of working hours and of holidays. Awarding of rewards for valuables and creative suggestions received from workers. Optimum use of raw materials and quality of finished products.

Significance of WPM Increase in productivity and performance. Improves employee involvement and participation. Better workforce flexibility. Promotes cordiality in industrial relations. Establishes goodwill and public image.

Hurdles to an effective WPM Orthodox attitude of the management. Role ambiguity and conflict. Absence of mutual faith. Non-implementation of the decisions of the committee. Absence of strong unions. Lack of follow-up.

Reasons for the failure:- The management have been o the view that workers are not competent to take decisions. It was difficult for workers representatives to play the role of management and union leaders. The scheme of workers participation was inspired by the government without any initiative from management.

The active association of union leaders with political parties was only responsible for the failure of this scheme. The workers participation is mainly emphasized at top level management. The workers in India do not feel motivated to participate in decision making because their lower needs too Remain unsatisfied.

Employee Empowerment

Employee empowerment- meaning Employee empowerment is a technique adopted by organizations to enable the employees to take independent decisions about the different aspects of their jobs.

Steps in employee empowerment (contd.)

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