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European Journal of Business and Management                                                                 www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

   Participative Management in Post Liberalisation- A case study of
                       Indian Jute industry
                               Prof. P. Srinivas Subba Rao1* , Mrs. P. Suseela Rani2
    1. HOD, Department of Commerce and Management Studies, MRPG College, Phool bagh, Vizianagaram –
        535001, A.P., India.
    2. Associate Professor, Department of MBA, TRR College of Engineering & Technology, Inole (V),
        Patancheru (M), Medak (Dt.) - 502319, A.P., India.
    * E-mail of the corresponding author: ss_pasumarti@yahoo.co.in

Abstract
The concept of employee participation in organization’s decision making is not new. However, the idea couldn’t gain
that much popularity among organizations. Studies have shown that only 3-5 percent of organizations have actually
implemented this concept in their daily operations. Jute Industry is one of the oldest and high labour intensive
industries particularly unskilled and semiskilled. This industry lost huge number of manly hours and productivity due
to poor industrial relations. Various studies revealed that the industrial relations are improved in post liberalization in
India. So, the researcher studied the importance and application of participative management in post liberalization in
this industry. The researcher collected the opinions from the sample respondents through a questionnaire and
analyzed with five point Likert scale and weighted average. It reveals in post liberalization employers recognized the
importance of participative management which improve the operational efficiency of the employees and maintain
cordial industrial relations.
Keywords:        Participative Management, industrial relations, liberalization, jute industry, operational efficiency,
                 productivity, employee involvement, job enrichment.
1. Introduction:
          Participative Management refers to as an open form of management where employees are actively involved
in organization’s decision making process. The concept is applied by the managers who understand the importance to
human intellect and seek a strong relationship with their employees. They understand that the employees are the
facilitators who deal directly with the customers and satisfy their needs. To beat the competition in market and to
stay ahead of the competition, this form of management has been adopted by many organizations. They welcome the
innovative ideas, concepts and thoughts from the employees and involve them in decision making process. Other
ways of participative management include increasing the responsibility of employees (job enrichment); forming self-
managed teams, quality circles, or quality-of-work-life committees; and soliciting survey feedback. Participative
management means, involves more than allowing employees to take part in making decisions. It also involves
management treating the ideas and suggestions of employees with consideration and respect. The most appropriate
form of participative management is direct employee ownership of a company.
          Participative Management can also be termed as ‘Industrial Democracy’, ‘Co-determination’, ‘Employee
Involvement’ as well as ‘Participative Decision Making’. Participative management is developed by managers who
actively seek a strong cooperative relationship with their employees. The logic behind employee participation is
quite simple. By involving workers in making decisions, affect the employees by increasing their autonomy and
control over their work lives. So, employees will become motivated, more committed to the organization, more
productive and more satisfied with their jobs. The advantages of participative management include increased
productivity, improved quality, and reduced costs. Participative management holds employees responsible,
accountable, for their work. It allows them to determine the out-come of work-related activities. Participative
management affords employees a voice. Employees take their jobs seriously, and become loyal to the organization.
          The idea behind employee involvement at every stage of decision making is absolutely straight. Freedom
and transparency in company’s operations take it to the next level and strengthens the basis of the organization. On
the other hand, there are several companies that straightway rule out the possibility of participative decision making
process. According to them, employees misuse their freedom of expression and participation in decision making as it
provides higher status to employees and empowers them.
Significance of Participative Management:
          Participative management holds employees responsible, accountable, for their work.
          It allows them to determine the out-come of work-related activities.


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European Journal of Business and Management                                                                www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

         It affords employees a voice.
         Employees take their jobs seriously, and become loyal to the organization.
         It delegates control to employees, but the organizational goals must be adhered to.
         Participative management fosters a team environment.

2. Liberalization:
         The Government of India started the economic liberalization policy in 1991. Before 1991, changes within
the industrial sector in the country were modest to say the least. The sector accounted for just one-fifth of the total
economic activity within the country. The sectoral structure of the industry has changed, albeit gradually. Most of the
industrial sector was dominated by a select band of family-based conglomerates that had been dominant historically.
Post 1991, a major restructuring has taken place with emergence of more technologically advanced segments among
industrial companies. Nowadays, more small and medium scale enterprises contribute significantly to economy.
          By the mid-90s, the private capital had surpassed the public capital. The management system had shifted
from the traditional family based system to a system of qualified and professional managers. One of the most
significant effects of the liberalization era has been the emergence of a strong, affluent and buoyant middle class with
significant purchasing powers and this has been the engine that has driven the economy since. Another major benefit
of the liberalization era has been the shift in the pattern of exports from traditional items like clothes, tea and spices
to automobiles, steel, IT etc. The ‘made in India’ brand, which did not evoke any sort of loyalty has now become a
brand name by itself and is now known all over the world for its quality. Also, the reforms have transformed the
education sector with a huge talent pool of qualified professionals now available, waiting to conquer the world with
their domain knowledge.
3. Jute Industry:
          Jute is cheap and important among all textile fibers, after cotton. The jute industry has been expanding
really fast spanning from a wide range of life style consumer products, with all courtesy to the versatility of Jute.
Innovative ways of bleaching, dyeing and finishing processes - the jute industry now provides finished jute products
that are softer, have a luster and also an aesthetic appeal. The jute sector in India engages a key role in the Indian
economy, providing direct employment to about 0.26 million workers, and supporting the lives of around 4.0 million
farm families. Around 0.14 million people are believed to be engaged in the tertiary sector, that supports the jute
industry. Currently it also contributes to exports to the tune of about 1000 crore.
          In entire state of the Andhra Pradesh Visakhapatnam, Vizianagaram and Srikakulam districts which are
having cultivation of Jute and Mesta. Basing on the availability of the raw material, nearest to the national market
(Kolkata in West Bengal) and availability of labour this industry is established and concentrated in these districts.
4. Objectives of the Study:
          To study the Participative Management in jute industry in North Coastal Andhra Pradesh.
          To study the effect of liberalization policies on Participative Management in North Coastal Andhra Pradesh
          jute industry.
          To make a comparative analysis of the opinions of the sample respondents on Participative Management in
          developed (Visakhapatnam), developing (Srikakulam) and backward (Vizianagaram) districts of Andhra
          Pradesh in post liberalization.
5. Methodology:

          The study focuses on perceptions & attitudes of employees in relation to Participative Management in post
liberalization. While the views & opinions on broad issues have been collected from selected employees who have
more than 15 years of experience from various departments in the jute industry in North coastal Andhra Pradesh i.e.
Visakhapatnam, Vizianagaram and Srikakulam districts. 95 per cent of the jute growing area and jute industry
concentrated in the North coastal Andhra Pradesh which is consisting of Visakhapatnam (developed), Vizianagaram
(backward) and Srikakulam (developing) districts. The researcher selected and collected the data from these three
districts because three are commonly having jute industry with different economic development. The sample
respondents constituted the main source of information which is collected by administering a structured
questionnaire. The secondary data has been collected from records, annual & management reports and wage & trade
union agreements of various jute mills. Here the researcher takes 10% employees as sample which is showing in
table 1.



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European Journal of Business and Management                                                              www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012


6. Techniques for Analysis:
          The researcher analyzed the collected data by using SPSS (Statistical Package for Social Science). The
researcher also used the Likert scale survey method for the analysis of the data. It is a five point scale which is used
to allow the individual to express how much they agree or disagree with a particular statement. The weighted mean
is similar to an arithmetic mean.
         Formally, the weighted mean of a non-empty set of data

         with non-negative weights

         is the quantity


         which means:



         According to this method, values are given to the scale as: Strongly agree +1, Agree +0.5, Neither agree nor
disagree 0, Disagree -0.5 and Strongly disagree -1. Based on the survey data the tables were prepared and calculated
with weighted averages.

7. Review of Literature:
          Sashkin and Marshall1 reveals that, "participative management is not merely effective in terms of
performance, productivity, and other output measures of organizational effectiveness, but that it is a moral and
ethical imperative. Employees may participate as individuals; as part of a manager–employee pair; or as members of
a group, with a manager and co-workers. A model of effects of participative management demonstrates that such
management has positive effects because it fulfils the three basic human work needs of increased autonomy,
increased meaningfulness, and decreased isolation."
          The opinions of surveys conducted by Ira Mitra2 and Supriya Roychowdhury3 as "works divulge that, in
pre-liberalization jute mill labour was most unstable and floating in character, and the labour supply in jute mills was
greatly affected by the seasons. The bad living and working conditions, the low wage rates, and the fluctuations in
the international jute market and hence in employment, leads to the failure of leadership of jute mill workers."
          Rana Hasan and Devashish Mitra4 said that, "in the post liberalization, volatility in productivity and output
gets translated into larger wage and employment volatility, theoretically a possible consequence of larger labour-
demand elasticities, leads to the deleterious effect on the wages and employee relations."
          K. R. Shyam Sundar studies reveal that, 5 “In the past two decades the incidence of lockouts has been high
and increase. This rise is said to be accompanied by the decline in strikes. The workers militancy period from the
mid-1960s to the late 1970s is said to be followed by employer militancy in mid-1980s and 1990s. The relative
incidence of the two forms of industrial action has assumed greater significance in the wake of the introduction of
economic and labour reforms in the 1990s”.




1
  Sashkin, Marshall, Participative management is an ethical imperative, Organizational Dynamics, Vol 12(4), 1984.
2
  Ira Mitra, Growth of Trade Union Consciousness among Jute Mill Workers, 1920-40, Economic and Political
Weekly, Vol. 16, No. 44/46, Nov., 1981.
3
  Supriya Roychowdhury, Public Sector Restructuring and Democracy: The State, Labour and Trade Unions in
India, Journal of Development Studies, Volume 39, Issue 3, 2003, pages 29-50.
4
  Stephen Frenkel and Sarosh Kuruvilla, Industrial and Labour Relations Review, Vol.55, No. 3 (April 2002) by
   Cornell University.
5
  K. R. Shyam Sundar, Lockouts in India, 1961-2001, Economic and Political Weekly, Vol. 39, No. 39 (Sep. 25 -
Oct. 1, 2004), pp. 4377-4385.


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European Journal of Business and Management                                                                 www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

          Debashish Bhattacherjee6 studies reveal that, "In India for the period 1960–86, where the changing strength,
structure & activities of unions are considered explicitly. The objective is to disentangle the effects of factors specific
to the bargaining process from the effects of overall economic development."
8. Study on impact of Liberalization on Participative Management:
          In pre liberalization organizations have not given much importance to the employee’s opinions. In post
liberalization the researcher assumed basing on the various studies the employees’ participation in management has
given importance. Opinions on participative management in jute industry in Post Liberalization in North Coastal
Andhra Pradesh have been elicited and discussed in the following pages. Five statements are included in measuring
the status of participative management. These are shown in Table 2, 3 and 4. A comparative analysis of the three
districts with the help of the weighted averages is shown in the table 5.
8.1 Analysis of the opinions of Visakhapatnam District employees:
          The researcher tabulated the sample employees’ opinion on Participative Management in jute industry in
post liberalization in Visakhapatnam District is explained in table 2.
          Basing on the opinions expressed by the Visakhapatnam district sample respondents, in pre liberalization
organizations have not given importance to employee participation in management. Impact of economic reforms,
influence of MNCs the Indian industry also realized the importance of participative management. In post
liberalization 35% of the sample respondents are strongly agreed and 29% are agreed that management gave
importance to employee’s participation in organizational issues. 7% are disagreed, 10% are strongly disagreed and
10% are neutral with this statement.
          “In post liberalization the organizations not only welcome the participative management it also
implemented in all levels of the organization”, this statement was strongly agreed by 38% of the sample respondents
and 29% are agreed. However, 7% of the sample respondents are disagreed and 7% are strongly disagreed this
statement. 19% of the employees are neither agree nor disagree with this.
          One of the union member of jute industry in Vizianagaram district opined that “besides management
encouragement in participative management, the individual’s attitude and perception also plays an important role in
developing participative management.”
          Out of 220 sample employees 71 employees are strongly agreed and 73 are agreed that participative
management makes the employee and employer work together for development of the organization. It develops
cordial industrial relation. 31 employees are neutral, 18 are disagreed and 27 are strongly disagreed with this
statement.
          “In post liberalization Participative management in the organization improves the operational efficiency of
the workers”, this statement was accepted by 69% (strongly agreed by 43% and agreed by 26%) of the sample
respondents. 6% are disagreed, 10% are strongly disagreed and 16% of the respondents were neutral with this
statement.
          Out of 220 sample employees 76 are strongly agreed and 59 are agreed that participative management
improves the responsibility of the employee in the organization. But, 39 employees are neutral, 20 are disagreed and
26 are strongly disagreed with this statement.
          One of the senior workers who are not interested in participative management in jute mill in Srikakulam
district said that, “Several times trade union leaders only involving in the management decisions and many of the
management decisions accepted by these because of different reasons.”
          According to the above analysis and the overall weighted average 0.37 reveals that most of the employees
in Visakhapatnam district satisfied with participative management in post liberalization when compared with the pre
liberalization.
8.2 Analysis of the opinions of Vizianagaram District employees:
          The researcher tabulated the sample employees’ opinion on Participative management in jute industry in
post liberalization in Vizianagaram District in table 3.
          According to the opinion of the Vizianagaram district, out of 414 sample employees 242 are strongly agreed
and 94 are agreed that, “organization welcome the employees participation in organizational issues in post
liberalization.” This statement was disagreeing by 19 respondents, strongly disagreed by 13 and remaining 46
employees neutral with this statement.

     6
1     Debashish Bhattacherjee and Tamal Datta Chaudhuri, Unions, wages and labour markets in Indian industry,
     1960–86, Journal of Development Studies, Volume 30, Issue 2, 443-465, 1994.


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European Journal of Business and Management                                                              www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

          “Organization gave equal opportunity to all levels of the employees in participation management in post
liberalization”, this statement was strongly agreed by 64% of the sample respondents and agreed by 22%. But, 6%
are disagreed, 3% are strongly disagreed and 5% of the employees are neutral on this statement.
          “In post liberalization organization participative management promoting cordial industrial relations”, this
statement was strongly agreed by 69% of the sample respondents and agreed by 21%. But, it was disagreed by 3%,
strongly disagreed by 4% and 3% are neutral on this statement.
          One of the employees in mechanical section said that, “In pre liberalization employees are not having
sufficient knowledge of participative management because of the lack of awareness about the various aspects of the
organization”.
          Out of 414 sample employees 281 are strongly agreed and 87 are agreed the statement that “in post
liberalization participative management in the organization improves the operational efficiency of the workers”. It
was disagree by 12 respondents, strongly disagree by 17 respondents and 17 employees are neutral about this
statement.
          “In post liberalization organization makes the employee responsible by involving through participative
management”, this statement was strongly agreed by 61% of the sample employees and 21% are agreed. 6% of the
employees are disagreed, 6% are strongly disagreed and 3% are neutral on this statement.
          The overall weighted average 0.69 reveals that majority of the Vizianagaram district jute employees are
interested to involve in the affairs of the organization through participative management.
8.3 Analysis of the opinions of Srikakulam District employees:
          The researcher gives the sample employees’ opinion on Participative management in jute industry in post
liberalization in Srikakulam District in the table no. 4.
          Though Srikakulam is a developing district the opinions expressed by the sample respondents are
favourable to the participative management, this is proved by 77% of the respondents are accepted this (strongly
agreed by 51% and agreed by 26%). But, 9% are disagreed, 3% are strongly disagreed and 12% of the sample
respondents are neutral with this statement.
          Out of 366 sample employees 197 are strongly agreed and 85 are agreed that the, “In post liberalization
organizations gave equal opportunity to all levels of the employees in participation management”. 14 of the sample
employees disagreed, 16 are strongly disagreed and the remaining employees are neutral on this statement.
          One of the management representative said that, “Though the organization is interested to welcome the
opinions from the employees through participative management but some are not participated due to lack of
education and inferiority complex.”
           “In post liberalization organizations promoting participative management for harmonious industrial
relations”, this statement was strongly agreed 58% and agreed by 25%. But 3% of the employees are disagreed, 7%
are strongly disagreed and 9% are neutral on this statement.
          One of the employees in production section said that, “In post liberalization employees are also educated
and know about the labour laws and policies. So, managements also ready to give opportunity to participate in
management issues.”
          “In post liberalization participative management in the organization improves the operational efficiency of
the workers”, 54% of the sample employees are strongly agreed and 21% are agreed this statement. 12% of the
employees are neither agree nor disagree and 8% are disagreed, 5% are strongly disagreed this statement.
          One of union member of the jute mill in Srikakulam district opined that, “It is the duty of the management
to educate the employees and encourage them to participate in organizational issues”.
          Out of 366 sample employees 168 i.e. 46% are strongly agreed and 136 i.e. 37% are agreed that
organization makes the employee responsible by involving through participative management in post liberalization.
19 employees are disagreed, 13 are strongly disagreed and 30 are neutral on this statement.
          So, in post liberalization majority (overall weighted average 0.57) of the Srikakulam district employees
satisfied with participative management, this leads to the harmonious industrial relations.
8.4 Comparative Analysis of the three districts sample respondent’s opinions:
          The researcher makes a comparative analysis of the opinions of employees of these three districts i.e.
Visakhapatnam (developed), Vizianagaram (backward) and Srikakulam (developing) on the following five
statements with the help of weighted averages, which are elaborated in table 5.
          It can be observed from the table 5; in post liberalization the jute industry welcomes the employee’s
participative management in all the three sample districts. In this Vizianagaram district stands first position with the


                                                          41
European Journal of Business and Management                                                            www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

weighted average of 0.64, it was followed by Srikakulam district (with the weighted average of 0.57) and
Visakhapatnam district (0.35).
          Though Vizianagaram district may be the backward district, but participative management was welcomed
the both the employee and the employer at all levels in the jute industry which develops the cordial industrial
relations. This may be the one of the reason for reduction of strikes in Vizianagram district jute industry in post
liberalization.
          One of the management representatives at Vizianagaram district jute mill told that, “Due to participative
management the industrial unrest has reduced which is very much needed to face the competition in the global
market.”
          One of the Union members of Vizianagaram district jute industry said that, “The concept is applied by the
managers who understand the importance to human intellect and seek a strong relationship with their employees.”
          The Vizianagaram district employees are more satisfied with the implementation of participation
management in all levels of the organization in post liberalization. It was evident by 0.69 weighted average. Next
was Srikakulam district with the weighted average of 0.59. It was little bit low in Visakhapatnam district with the
weighted average of 0.42. So, there is a need to improve the implementation of participative management in all
levels in Visakhapatnam district.
          The labour officer in a jute mill situated at Visakhapatnam district opined that, “Open and honest
participation always helps the organization.”
          “Participative management promotes cordial industrial relations in post liberalization”, this statement is
accepted by Vizianagaram district employees with the weighted average of 0.74 which stands the highest among the
three districts. Srikakulam district with 0.60 and Visakhapatnam districts with the weighted averages of 0.33 stands
second and third position. Though Visakhapatnam is a developed district but the participative levels are very low.
This is due to lack of initiative by the management and the union.
          “Participative management in the organization improves the operational efficiency of the workers. It is as
high as in Vizianagaram district with the weighted average of 0.73 and followed by Srikakulam 0.55 and little bit
low in Visakhapatnam district with 0.43. So, there is a need to improve the participative management in
Visakhapatnam district which improves the operational efficiency of the workers.
          A management representative at Visakhapatnam district jute mill said that, “In post liberalization employers
welcome the innovative ideas, concepts and thoughts from the employees and involve them in decision making
process.”
          “Through participative management organizations make the employee more responsible,” this statement
was well accepted by the Vizianagaram district employees with the weighted average of 0.64 and Srikakulam district
with the weighted average of 0.58. It is low in Visakhapatnam district with the weighted average of 0.32. So, there is
a need to involve the employees more in participative management in Visakhapatnam district.
          The labour officer in a jute mill situated at Srikakulam district said that, “Participative management
motivate the employees with more commitment towards the organization”.
9. Conclusion:
          According to the above analysis, the employees of Vizianagaram district are more involved in participative
management compared with the other developed (Visakhapatnam) and developing (Srikakulam) districts of the
study. Though Visakhapatnam district is a developed district, but in participative management the employee’s
involvement is very low. This may be the one of the reason for poor industrial relations in jute industry compared
with the neighbouring districts. It is the responsibility of the management to take initiative and to explain the
importance of participative all in the working community and the organization. So, Participative management fosters
a team environment management and it’s advantageous to the one and. It is management's job to explain what's
expected, and work with employees to achieve goals.

         Participative management importance increased gradually over a period of years due to the growth of large-
scale enterprises, increases in workforce, paternalistic philosophy and practice of informal consultation. Moreover,
the growth of professionalism in industry, advent of democracy, and development of the principle of social justice
and transformation of traditional labour management relations have added new dimensions to the concept of
participative management.




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European Journal of Business and Management                                                            www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

10. References:

Virmani, B.R., "Workers Participation in Management", Macmillan, New Delhi 1978.
Mamoria, C.B. and Mamoria S., "Dynamics of Industrial Relations in India", New Delhi Himalaya, 2000.
Coleman, P.T. "Implicit Theories of Organizational Power and Priming Effects on Managerial Power-Sharing
Decisions: An Experimental Study." Journal of Applied Social Psychology 34, no. 2 (2004): 29721.
Venkat Ratnam, C.S., "Unusual Collective Agreements", Global Business Press, New Delhi, 1990.
Coye, R.W., and. Belohlav J.A., "An Exploratory Analysis of Employee Participation." Group and Organization
Management 20, no. 1 (1995): 47.
Greenfield, W.M. "Decision Making and Employee Engagement." Employment Relations Today 31, no. 2 (2004):
134.
Pais, H., "Employee Participation in Management", National Labour Institute, New Delhi 1988.
Hickey, J., and Cassner-Loft, J., "How to get the employee participation", Training and Development, 52, Feb. 1998.
Richardson, J.H. "An Introduction to the Study of Industrial Relations", George Allen, London, 1961.
Alexander, K.C. "Participation Management: The Indian Experience", Shri Ram Centre, New Delhi, 1972.
Zaheer, M.A. "Participation: A New Dimension", Integrated Management, May, 1980.
Dufty, N.F. "Industrial Relations in India", Allied, Bombay, 1964.
Samani, N.K. "Workers Participation in Management", Productivity, 1977.
Pramod Verma, "Management of Industrial Relations", Oxford IBH, New Delhi, 1981.

11. Tables:
                        Table 1: Details of selection of sample respondents of three districts
                                         of North Coastal Andhra Pradesh
                  S.    Name of the District     Employees having above        Sample employees
                  No.                              15 years experience
                  1.    Visakhapatnam                      2200                        220
                  2.    Vizianagaram                       4140                        414
                  3.    Srikakulam                         3660                        366
                                Total                      10,000                     1,000




                                                         43
European Journal of Business and Management                                                    www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

 Table 2: Opinions on Participative Management in Jute industry in Post Liberalization in Visakhapatnam
                                                District
 S.                 Statements                SA       A          N       D        SD       WA
No.                                          (+1.0)  (+0.5)     (0.0)   (-0.5)    (-1.0)
 1. Organization welcome employees             76      63        43       16        22      0.35
     participative management.              (34.55) (28.64) (19.55) (7.27) (10.00)
 2. Participative management is followed       83      64        42       15        16      0.42
     at all levels.                         (37.73) (29.09) (19.09) (6.82)       (7.27)
 3. Participative management promoting         71      73        31       18        27      0.33
     cordial industrial relations.          (32.27) (33.18) (14.09) (8.18) (12.27)
 4. Participative management in the            94      57        34       13        22      0.43
     organization improves operational (42.73) (25.91) (15.45) (5.91) (10.00)
     efficiency of workers.
 5. Organization        makes      employee    76      59        39       20        26      0.32
     responsible by involving through (34.54) (26.82) (17.73) (9.09) (11.81)
     participative management.
     Overall weighted average                                                               0.37
SA = Strongly Agree; A = Agree; N = Neither Agree nor Disagree; D = Disagree; SD = Strongly Disagree; WA =
Weighted Average

                      Table 3: Opinions on Participative management in Jute industry
                              in post liberalization in Vizianagaram District
 S.                                            SA          A          N       D       SD      WA
No.                 Statement                 (+1.0)     (+0.5)     (0.0)   (-0.5)   (-1.0)
 1. Organization welcome employees             242         94        46       19       13     0.64
     participative management.               (58.45)    (22.71)   (11.11)   (4.58)   (3.14)
 2. Participative management is followed       266         89        22       24       13     0.69
     at all levels.                          (64.25)    (21.50)    (5.31)   (5.80)   (3.14)
 3. Participative management promoting         285         86        14       14       15     0.74
     cordial industrial relations.           (68.84)    (20.77)    (3.38)   (3.38)   (3.62)
 4. Participative management improves          281         87        17       12       17     0.73
     the operational efficiency of the       (67.87)    (21.01)    (4.11)   (2.90)   (4.11)
     workers.
 5. Organization makes the employee            252        99        13        24       26     0.64
     responsible by involving through        (60.90)    (31.16)   (3.14)    (5.79)   (6.28)
     participative management.
     Overall weighted average                                                                0.69
SA = Strongly Agree; A =Agree; N = Neither   Agree nor Disagree; D = Disagree; SD = Strongly Disagree; WA =
Weighted Average




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European Journal of Business and Management                                                                www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

                        Table 4: Opinions on Participative Management in Jute industry
                                   in post liberalization in Srikakulam District
S.                                                SA          A          N       D          SD       WA
No.                Statement                     (+1.0)     (+0.5)     (0.0)   (-0.5)      (-1.0)
 1. Organization welcome employees                186         94        44       32         10       0.57
    participative management.                   (50.82)    (25.68)   (12.02)   (8.74)     (2.73)
 2. Participative management is followed          197         85        54       14         16       0.59
    at all levels.                              (53.83)    (23.22)   (14.75)   (3.83)     (4.37)
 3. Participative management promoting            206         91        32       12         25       0.60
    cordial industrial relations.               (58.19)    (24.86)    (8.74)   (3.28)     (6.83)
 4.  Participative management in the         197       78       43        30      18       0.55
     organization improves the operational (53.83) (21.31) (11.75) (8.20) (4.92)
     efficiency of the workers.
 5. Organization        makes   employee     168      136       30        19      13       0.58
     responsible by involving through (45.90) (37.16) (8.19)            (5.19) (3.56)
     participative management.
     Overall weighted average                                                              0.57
SA = Strongly Agree; A =Agree; N = Neither Agree nor Disagree; D = Disagree; SD = Strongly Disagree; WA =
Weighted Average

                   Table 5: A comparative analysis of opinions on Participative Management
                   in Jute Industry in Post Liberalization in North Coastal Andhra Pradesh
S.                        Statement                                   Weighted averages
No.                                                        Visakhapatnam Vizianagaram Srikakulam
 1. Organization welcome employees participative                0.35          0.64        0.57
    management.
 2. Participative management is followed at all                  0.42              0.69             0.59
    levels.
 3. Participative management promoting cordial                   0.33              0.74             0.60
    industrial relations.
 4. Participative management in the organization                 0.43              0.73             0.55
    improves the operational efficiency of the
    workers.
 5. Organization makes responsible employee by                   0.32              0.64             0.58
    involving through participative management.
    Overall weighted average                                     0.37              0.69             0.57

Srinivas Subbarao Pasumarti, Professor and Head, Department of Management Studies, Commerce and HRM,
Maharajahs Post Graduate College, (A NAAC Accredited “A” Grade College) Affiliated to Andhra University
Vizianagaram. Presently he is also working as Director, Center for Management Research and Chief Coordinator,
Center for Entrepreneurship. He has 18 years of experience in teaching and research at Post Graduate level (MBA)
besides possessing industrial experience.    He obtained MBA (Int.Business), MBA (Fin), M.Com. M.H.R.M., MA,
M.Phil, B.L., Ph.D. PGDCS., P.G.D.Ex.M.M., PGD T & T.M from various reputed universities. Recently
Berhampur University awarded him the D.Litt (Post Doctoral) on his thesis on “Foreign Direct Investment in
Indian Tourism”. He is the first person in the faculty of Commerce & Management studies of Andhra university
area who received the D.Litt in Commerce & Management studies. He is an alumnus of Indian Institute of
Management (IIMA), Ahmedabad.           He was a recipient of National Merit scholarships continuously for five years
from the Andhra Pradesh State Government and Government of India. He is an approved research guide of Andhra
University, Nagarjuna University and JNT University, Kakinada and Rayalaseema University PhD students. At
present 12 scholars are pursuing their research under his guidance. He is an active member of various international
management associations.          He authored and edited 24 books in the area of Finance, Tourism, Cases in
Management and one in Entrepreneurship and Small Business Management. Besides a list (115) of articles, book


                                                          45
European Journal of Business and Management                                                       www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.8, 2012

chapters, case studies, book reviews and research papers were published and presented in various national and
international journals. He Presented papers in various national and international seminars & conferences held at
Singapore, Malaysia, Thailand, Australia, Srilanka, Turkey, China and Japan.

P. Suseela Rani, Associate Professor, Department of MBA, TRR College of Engineering & Technology,
Patancheru, Medak (Dt.), A.P., India. She has 14 years of IT industry experience and three years of teaching
experience. She obtained her master degrees i.e., MBA (Human Resource Management), M.Com. (Banking) and
DCS (Diploma in computer Science) from Andhra University. At present she is pursuing her Ph.D. from
Rayalaseema University. She published (15) articles, book chapters and research papers in various national
journals. She presented papers in various national seminars and conferences.




                                                      46
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Participative management in post liberalisation a case study of indian jute industry

  • 1. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 Participative Management in Post Liberalisation- A case study of Indian Jute industry Prof. P. Srinivas Subba Rao1* , Mrs. P. Suseela Rani2 1. HOD, Department of Commerce and Management Studies, MRPG College, Phool bagh, Vizianagaram – 535001, A.P., India. 2. Associate Professor, Department of MBA, TRR College of Engineering & Technology, Inole (V), Patancheru (M), Medak (Dt.) - 502319, A.P., India. * E-mail of the corresponding author: ss_pasumarti@yahoo.co.in Abstract The concept of employee participation in organization’s decision making is not new. However, the idea couldn’t gain that much popularity among organizations. Studies have shown that only 3-5 percent of organizations have actually implemented this concept in their daily operations. Jute Industry is one of the oldest and high labour intensive industries particularly unskilled and semiskilled. This industry lost huge number of manly hours and productivity due to poor industrial relations. Various studies revealed that the industrial relations are improved in post liberalization in India. So, the researcher studied the importance and application of participative management in post liberalization in this industry. The researcher collected the opinions from the sample respondents through a questionnaire and analyzed with five point Likert scale and weighted average. It reveals in post liberalization employers recognized the importance of participative management which improve the operational efficiency of the employees and maintain cordial industrial relations. Keywords: Participative Management, industrial relations, liberalization, jute industry, operational efficiency, productivity, employee involvement, job enrichment. 1. Introduction: Participative Management refers to as an open form of management where employees are actively involved in organization’s decision making process. The concept is applied by the managers who understand the importance to human intellect and seek a strong relationship with their employees. They understand that the employees are the facilitators who deal directly with the customers and satisfy their needs. To beat the competition in market and to stay ahead of the competition, this form of management has been adopted by many organizations. They welcome the innovative ideas, concepts and thoughts from the employees and involve them in decision making process. Other ways of participative management include increasing the responsibility of employees (job enrichment); forming self- managed teams, quality circles, or quality-of-work-life committees; and soliciting survey feedback. Participative management means, involves more than allowing employees to take part in making decisions. It also involves management treating the ideas and suggestions of employees with consideration and respect. The most appropriate form of participative management is direct employee ownership of a company. Participative Management can also be termed as ‘Industrial Democracy’, ‘Co-determination’, ‘Employee Involvement’ as well as ‘Participative Decision Making’. Participative management is developed by managers who actively seek a strong cooperative relationship with their employees. The logic behind employee participation is quite simple. By involving workers in making decisions, affect the employees by increasing their autonomy and control over their work lives. So, employees will become motivated, more committed to the organization, more productive and more satisfied with their jobs. The advantages of participative management include increased productivity, improved quality, and reduced costs. Participative management holds employees responsible, accountable, for their work. It allows them to determine the out-come of work-related activities. Participative management affords employees a voice. Employees take their jobs seriously, and become loyal to the organization. The idea behind employee involvement at every stage of decision making is absolutely straight. Freedom and transparency in company’s operations take it to the next level and strengthens the basis of the organization. On the other hand, there are several companies that straightway rule out the possibility of participative decision making process. According to them, employees misuse their freedom of expression and participation in decision making as it provides higher status to employees and empowers them. Significance of Participative Management: Participative management holds employees responsible, accountable, for their work. It allows them to determine the out-come of work-related activities. 37
  • 2. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 It affords employees a voice. Employees take their jobs seriously, and become loyal to the organization. It delegates control to employees, but the organizational goals must be adhered to. Participative management fosters a team environment. 2. Liberalization: The Government of India started the economic liberalization policy in 1991. Before 1991, changes within the industrial sector in the country were modest to say the least. The sector accounted for just one-fifth of the total economic activity within the country. The sectoral structure of the industry has changed, albeit gradually. Most of the industrial sector was dominated by a select band of family-based conglomerates that had been dominant historically. Post 1991, a major restructuring has taken place with emergence of more technologically advanced segments among industrial companies. Nowadays, more small and medium scale enterprises contribute significantly to economy. By the mid-90s, the private capital had surpassed the public capital. The management system had shifted from the traditional family based system to a system of qualified and professional managers. One of the most significant effects of the liberalization era has been the emergence of a strong, affluent and buoyant middle class with significant purchasing powers and this has been the engine that has driven the economy since. Another major benefit of the liberalization era has been the shift in the pattern of exports from traditional items like clothes, tea and spices to automobiles, steel, IT etc. The ‘made in India’ brand, which did not evoke any sort of loyalty has now become a brand name by itself and is now known all over the world for its quality. Also, the reforms have transformed the education sector with a huge talent pool of qualified professionals now available, waiting to conquer the world with their domain knowledge. 3. Jute Industry: Jute is cheap and important among all textile fibers, after cotton. The jute industry has been expanding really fast spanning from a wide range of life style consumer products, with all courtesy to the versatility of Jute. Innovative ways of bleaching, dyeing and finishing processes - the jute industry now provides finished jute products that are softer, have a luster and also an aesthetic appeal. The jute sector in India engages a key role in the Indian economy, providing direct employment to about 0.26 million workers, and supporting the lives of around 4.0 million farm families. Around 0.14 million people are believed to be engaged in the tertiary sector, that supports the jute industry. Currently it also contributes to exports to the tune of about 1000 crore. In entire state of the Andhra Pradesh Visakhapatnam, Vizianagaram and Srikakulam districts which are having cultivation of Jute and Mesta. Basing on the availability of the raw material, nearest to the national market (Kolkata in West Bengal) and availability of labour this industry is established and concentrated in these districts. 4. Objectives of the Study: To study the Participative Management in jute industry in North Coastal Andhra Pradesh. To study the effect of liberalization policies on Participative Management in North Coastal Andhra Pradesh jute industry. To make a comparative analysis of the opinions of the sample respondents on Participative Management in developed (Visakhapatnam), developing (Srikakulam) and backward (Vizianagaram) districts of Andhra Pradesh in post liberalization. 5. Methodology: The study focuses on perceptions & attitudes of employees in relation to Participative Management in post liberalization. While the views & opinions on broad issues have been collected from selected employees who have more than 15 years of experience from various departments in the jute industry in North coastal Andhra Pradesh i.e. Visakhapatnam, Vizianagaram and Srikakulam districts. 95 per cent of the jute growing area and jute industry concentrated in the North coastal Andhra Pradesh which is consisting of Visakhapatnam (developed), Vizianagaram (backward) and Srikakulam (developing) districts. The researcher selected and collected the data from these three districts because three are commonly having jute industry with different economic development. The sample respondents constituted the main source of information which is collected by administering a structured questionnaire. The secondary data has been collected from records, annual & management reports and wage & trade union agreements of various jute mills. Here the researcher takes 10% employees as sample which is showing in table 1. 38
  • 3. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 6. Techniques for Analysis: The researcher analyzed the collected data by using SPSS (Statistical Package for Social Science). The researcher also used the Likert scale survey method for the analysis of the data. It is a five point scale which is used to allow the individual to express how much they agree or disagree with a particular statement. The weighted mean is similar to an arithmetic mean. Formally, the weighted mean of a non-empty set of data with non-negative weights is the quantity which means: According to this method, values are given to the scale as: Strongly agree +1, Agree +0.5, Neither agree nor disagree 0, Disagree -0.5 and Strongly disagree -1. Based on the survey data the tables were prepared and calculated with weighted averages. 7. Review of Literature: Sashkin and Marshall1 reveals that, "participative management is not merely effective in terms of performance, productivity, and other output measures of organizational effectiveness, but that it is a moral and ethical imperative. Employees may participate as individuals; as part of a manager–employee pair; or as members of a group, with a manager and co-workers. A model of effects of participative management demonstrates that such management has positive effects because it fulfils the three basic human work needs of increased autonomy, increased meaningfulness, and decreased isolation." The opinions of surveys conducted by Ira Mitra2 and Supriya Roychowdhury3 as "works divulge that, in pre-liberalization jute mill labour was most unstable and floating in character, and the labour supply in jute mills was greatly affected by the seasons. The bad living and working conditions, the low wage rates, and the fluctuations in the international jute market and hence in employment, leads to the failure of leadership of jute mill workers." Rana Hasan and Devashish Mitra4 said that, "in the post liberalization, volatility in productivity and output gets translated into larger wage and employment volatility, theoretically a possible consequence of larger labour- demand elasticities, leads to the deleterious effect on the wages and employee relations." K. R. Shyam Sundar studies reveal that, 5 “In the past two decades the incidence of lockouts has been high and increase. This rise is said to be accompanied by the decline in strikes. The workers militancy period from the mid-1960s to the late 1970s is said to be followed by employer militancy in mid-1980s and 1990s. The relative incidence of the two forms of industrial action has assumed greater significance in the wake of the introduction of economic and labour reforms in the 1990s”. 1 Sashkin, Marshall, Participative management is an ethical imperative, Organizational Dynamics, Vol 12(4), 1984. 2 Ira Mitra, Growth of Trade Union Consciousness among Jute Mill Workers, 1920-40, Economic and Political Weekly, Vol. 16, No. 44/46, Nov., 1981. 3 Supriya Roychowdhury, Public Sector Restructuring and Democracy: The State, Labour and Trade Unions in India, Journal of Development Studies, Volume 39, Issue 3, 2003, pages 29-50. 4 Stephen Frenkel and Sarosh Kuruvilla, Industrial and Labour Relations Review, Vol.55, No. 3 (April 2002) by Cornell University. 5 K. R. Shyam Sundar, Lockouts in India, 1961-2001, Economic and Political Weekly, Vol. 39, No. 39 (Sep. 25 - Oct. 1, 2004), pp. 4377-4385. 39
  • 4. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 Debashish Bhattacherjee6 studies reveal that, "In India for the period 1960–86, where the changing strength, structure & activities of unions are considered explicitly. The objective is to disentangle the effects of factors specific to the bargaining process from the effects of overall economic development." 8. Study on impact of Liberalization on Participative Management: In pre liberalization organizations have not given much importance to the employee’s opinions. In post liberalization the researcher assumed basing on the various studies the employees’ participation in management has given importance. Opinions on participative management in jute industry in Post Liberalization in North Coastal Andhra Pradesh have been elicited and discussed in the following pages. Five statements are included in measuring the status of participative management. These are shown in Table 2, 3 and 4. A comparative analysis of the three districts with the help of the weighted averages is shown in the table 5. 8.1 Analysis of the opinions of Visakhapatnam District employees: The researcher tabulated the sample employees’ opinion on Participative Management in jute industry in post liberalization in Visakhapatnam District is explained in table 2. Basing on the opinions expressed by the Visakhapatnam district sample respondents, in pre liberalization organizations have not given importance to employee participation in management. Impact of economic reforms, influence of MNCs the Indian industry also realized the importance of participative management. In post liberalization 35% of the sample respondents are strongly agreed and 29% are agreed that management gave importance to employee’s participation in organizational issues. 7% are disagreed, 10% are strongly disagreed and 10% are neutral with this statement. “In post liberalization the organizations not only welcome the participative management it also implemented in all levels of the organization”, this statement was strongly agreed by 38% of the sample respondents and 29% are agreed. However, 7% of the sample respondents are disagreed and 7% are strongly disagreed this statement. 19% of the employees are neither agree nor disagree with this. One of the union member of jute industry in Vizianagaram district opined that “besides management encouragement in participative management, the individual’s attitude and perception also plays an important role in developing participative management.” Out of 220 sample employees 71 employees are strongly agreed and 73 are agreed that participative management makes the employee and employer work together for development of the organization. It develops cordial industrial relation. 31 employees are neutral, 18 are disagreed and 27 are strongly disagreed with this statement. “In post liberalization Participative management in the organization improves the operational efficiency of the workers”, this statement was accepted by 69% (strongly agreed by 43% and agreed by 26%) of the sample respondents. 6% are disagreed, 10% are strongly disagreed and 16% of the respondents were neutral with this statement. Out of 220 sample employees 76 are strongly agreed and 59 are agreed that participative management improves the responsibility of the employee in the organization. But, 39 employees are neutral, 20 are disagreed and 26 are strongly disagreed with this statement. One of the senior workers who are not interested in participative management in jute mill in Srikakulam district said that, “Several times trade union leaders only involving in the management decisions and many of the management decisions accepted by these because of different reasons.” According to the above analysis and the overall weighted average 0.37 reveals that most of the employees in Visakhapatnam district satisfied with participative management in post liberalization when compared with the pre liberalization. 8.2 Analysis of the opinions of Vizianagaram District employees: The researcher tabulated the sample employees’ opinion on Participative management in jute industry in post liberalization in Vizianagaram District in table 3. According to the opinion of the Vizianagaram district, out of 414 sample employees 242 are strongly agreed and 94 are agreed that, “organization welcome the employees participation in organizational issues in post liberalization.” This statement was disagreeing by 19 respondents, strongly disagreed by 13 and remaining 46 employees neutral with this statement. 6 1 Debashish Bhattacherjee and Tamal Datta Chaudhuri, Unions, wages and labour markets in Indian industry, 1960–86, Journal of Development Studies, Volume 30, Issue 2, 443-465, 1994. 40
  • 5. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 “Organization gave equal opportunity to all levels of the employees in participation management in post liberalization”, this statement was strongly agreed by 64% of the sample respondents and agreed by 22%. But, 6% are disagreed, 3% are strongly disagreed and 5% of the employees are neutral on this statement. “In post liberalization organization participative management promoting cordial industrial relations”, this statement was strongly agreed by 69% of the sample respondents and agreed by 21%. But, it was disagreed by 3%, strongly disagreed by 4% and 3% are neutral on this statement. One of the employees in mechanical section said that, “In pre liberalization employees are not having sufficient knowledge of participative management because of the lack of awareness about the various aspects of the organization”. Out of 414 sample employees 281 are strongly agreed and 87 are agreed the statement that “in post liberalization participative management in the organization improves the operational efficiency of the workers”. It was disagree by 12 respondents, strongly disagree by 17 respondents and 17 employees are neutral about this statement. “In post liberalization organization makes the employee responsible by involving through participative management”, this statement was strongly agreed by 61% of the sample employees and 21% are agreed. 6% of the employees are disagreed, 6% are strongly disagreed and 3% are neutral on this statement. The overall weighted average 0.69 reveals that majority of the Vizianagaram district jute employees are interested to involve in the affairs of the organization through participative management. 8.3 Analysis of the opinions of Srikakulam District employees: The researcher gives the sample employees’ opinion on Participative management in jute industry in post liberalization in Srikakulam District in the table no. 4. Though Srikakulam is a developing district the opinions expressed by the sample respondents are favourable to the participative management, this is proved by 77% of the respondents are accepted this (strongly agreed by 51% and agreed by 26%). But, 9% are disagreed, 3% are strongly disagreed and 12% of the sample respondents are neutral with this statement. Out of 366 sample employees 197 are strongly agreed and 85 are agreed that the, “In post liberalization organizations gave equal opportunity to all levels of the employees in participation management”. 14 of the sample employees disagreed, 16 are strongly disagreed and the remaining employees are neutral on this statement. One of the management representative said that, “Though the organization is interested to welcome the opinions from the employees through participative management but some are not participated due to lack of education and inferiority complex.” “In post liberalization organizations promoting participative management for harmonious industrial relations”, this statement was strongly agreed 58% and agreed by 25%. But 3% of the employees are disagreed, 7% are strongly disagreed and 9% are neutral on this statement. One of the employees in production section said that, “In post liberalization employees are also educated and know about the labour laws and policies. So, managements also ready to give opportunity to participate in management issues.” “In post liberalization participative management in the organization improves the operational efficiency of the workers”, 54% of the sample employees are strongly agreed and 21% are agreed this statement. 12% of the employees are neither agree nor disagree and 8% are disagreed, 5% are strongly disagreed this statement. One of union member of the jute mill in Srikakulam district opined that, “It is the duty of the management to educate the employees and encourage them to participate in organizational issues”. Out of 366 sample employees 168 i.e. 46% are strongly agreed and 136 i.e. 37% are agreed that organization makes the employee responsible by involving through participative management in post liberalization. 19 employees are disagreed, 13 are strongly disagreed and 30 are neutral on this statement. So, in post liberalization majority (overall weighted average 0.57) of the Srikakulam district employees satisfied with participative management, this leads to the harmonious industrial relations. 8.4 Comparative Analysis of the three districts sample respondent’s opinions: The researcher makes a comparative analysis of the opinions of employees of these three districts i.e. Visakhapatnam (developed), Vizianagaram (backward) and Srikakulam (developing) on the following five statements with the help of weighted averages, which are elaborated in table 5. It can be observed from the table 5; in post liberalization the jute industry welcomes the employee’s participative management in all the three sample districts. In this Vizianagaram district stands first position with the 41
  • 6. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 weighted average of 0.64, it was followed by Srikakulam district (with the weighted average of 0.57) and Visakhapatnam district (0.35). Though Vizianagaram district may be the backward district, but participative management was welcomed the both the employee and the employer at all levels in the jute industry which develops the cordial industrial relations. This may be the one of the reason for reduction of strikes in Vizianagram district jute industry in post liberalization. One of the management representatives at Vizianagaram district jute mill told that, “Due to participative management the industrial unrest has reduced which is very much needed to face the competition in the global market.” One of the Union members of Vizianagaram district jute industry said that, “The concept is applied by the managers who understand the importance to human intellect and seek a strong relationship with their employees.” The Vizianagaram district employees are more satisfied with the implementation of participation management in all levels of the organization in post liberalization. It was evident by 0.69 weighted average. Next was Srikakulam district with the weighted average of 0.59. It was little bit low in Visakhapatnam district with the weighted average of 0.42. So, there is a need to improve the implementation of participative management in all levels in Visakhapatnam district. The labour officer in a jute mill situated at Visakhapatnam district opined that, “Open and honest participation always helps the organization.” “Participative management promotes cordial industrial relations in post liberalization”, this statement is accepted by Vizianagaram district employees with the weighted average of 0.74 which stands the highest among the three districts. Srikakulam district with 0.60 and Visakhapatnam districts with the weighted averages of 0.33 stands second and third position. Though Visakhapatnam is a developed district but the participative levels are very low. This is due to lack of initiative by the management and the union. “Participative management in the organization improves the operational efficiency of the workers. It is as high as in Vizianagaram district with the weighted average of 0.73 and followed by Srikakulam 0.55 and little bit low in Visakhapatnam district with 0.43. So, there is a need to improve the participative management in Visakhapatnam district which improves the operational efficiency of the workers. A management representative at Visakhapatnam district jute mill said that, “In post liberalization employers welcome the innovative ideas, concepts and thoughts from the employees and involve them in decision making process.” “Through participative management organizations make the employee more responsible,” this statement was well accepted by the Vizianagaram district employees with the weighted average of 0.64 and Srikakulam district with the weighted average of 0.58. It is low in Visakhapatnam district with the weighted average of 0.32. So, there is a need to involve the employees more in participative management in Visakhapatnam district. The labour officer in a jute mill situated at Srikakulam district said that, “Participative management motivate the employees with more commitment towards the organization”. 9. Conclusion: According to the above analysis, the employees of Vizianagaram district are more involved in participative management compared with the other developed (Visakhapatnam) and developing (Srikakulam) districts of the study. Though Visakhapatnam district is a developed district, but in participative management the employee’s involvement is very low. This may be the one of the reason for poor industrial relations in jute industry compared with the neighbouring districts. It is the responsibility of the management to take initiative and to explain the importance of participative all in the working community and the organization. So, Participative management fosters a team environment management and it’s advantageous to the one and. It is management's job to explain what's expected, and work with employees to achieve goals. Participative management importance increased gradually over a period of years due to the growth of large- scale enterprises, increases in workforce, paternalistic philosophy and practice of informal consultation. Moreover, the growth of professionalism in industry, advent of democracy, and development of the principle of social justice and transformation of traditional labour management relations have added new dimensions to the concept of participative management. 42
  • 7. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 10. References: Virmani, B.R., "Workers Participation in Management", Macmillan, New Delhi 1978. Mamoria, C.B. and Mamoria S., "Dynamics of Industrial Relations in India", New Delhi Himalaya, 2000. Coleman, P.T. "Implicit Theories of Organizational Power and Priming Effects on Managerial Power-Sharing Decisions: An Experimental Study." Journal of Applied Social Psychology 34, no. 2 (2004): 29721. Venkat Ratnam, C.S., "Unusual Collective Agreements", Global Business Press, New Delhi, 1990. Coye, R.W., and. Belohlav J.A., "An Exploratory Analysis of Employee Participation." Group and Organization Management 20, no. 1 (1995): 47. Greenfield, W.M. "Decision Making and Employee Engagement." Employment Relations Today 31, no. 2 (2004): 134. Pais, H., "Employee Participation in Management", National Labour Institute, New Delhi 1988. Hickey, J., and Cassner-Loft, J., "How to get the employee participation", Training and Development, 52, Feb. 1998. Richardson, J.H. "An Introduction to the Study of Industrial Relations", George Allen, London, 1961. Alexander, K.C. "Participation Management: The Indian Experience", Shri Ram Centre, New Delhi, 1972. Zaheer, M.A. "Participation: A New Dimension", Integrated Management, May, 1980. Dufty, N.F. "Industrial Relations in India", Allied, Bombay, 1964. Samani, N.K. "Workers Participation in Management", Productivity, 1977. Pramod Verma, "Management of Industrial Relations", Oxford IBH, New Delhi, 1981. 11. Tables: Table 1: Details of selection of sample respondents of three districts of North Coastal Andhra Pradesh S. Name of the District Employees having above Sample employees No. 15 years experience 1. Visakhapatnam 2200 220 2. Vizianagaram 4140 414 3. Srikakulam 3660 366 Total 10,000 1,000 43
  • 8. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 Table 2: Opinions on Participative Management in Jute industry in Post Liberalization in Visakhapatnam District S. Statements SA A N D SD WA No. (+1.0) (+0.5) (0.0) (-0.5) (-1.0) 1. Organization welcome employees 76 63 43 16 22 0.35 participative management. (34.55) (28.64) (19.55) (7.27) (10.00) 2. Participative management is followed 83 64 42 15 16 0.42 at all levels. (37.73) (29.09) (19.09) (6.82) (7.27) 3. Participative management promoting 71 73 31 18 27 0.33 cordial industrial relations. (32.27) (33.18) (14.09) (8.18) (12.27) 4. Participative management in the 94 57 34 13 22 0.43 organization improves operational (42.73) (25.91) (15.45) (5.91) (10.00) efficiency of workers. 5. Organization makes employee 76 59 39 20 26 0.32 responsible by involving through (34.54) (26.82) (17.73) (9.09) (11.81) participative management. Overall weighted average 0.37 SA = Strongly Agree; A = Agree; N = Neither Agree nor Disagree; D = Disagree; SD = Strongly Disagree; WA = Weighted Average Table 3: Opinions on Participative management in Jute industry in post liberalization in Vizianagaram District S. SA A N D SD WA No. Statement (+1.0) (+0.5) (0.0) (-0.5) (-1.0) 1. Organization welcome employees 242 94 46 19 13 0.64 participative management. (58.45) (22.71) (11.11) (4.58) (3.14) 2. Participative management is followed 266 89 22 24 13 0.69 at all levels. (64.25) (21.50) (5.31) (5.80) (3.14) 3. Participative management promoting 285 86 14 14 15 0.74 cordial industrial relations. (68.84) (20.77) (3.38) (3.38) (3.62) 4. Participative management improves 281 87 17 12 17 0.73 the operational efficiency of the (67.87) (21.01) (4.11) (2.90) (4.11) workers. 5. Organization makes the employee 252 99 13 24 26 0.64 responsible by involving through (60.90) (31.16) (3.14) (5.79) (6.28) participative management. Overall weighted average 0.69 SA = Strongly Agree; A =Agree; N = Neither Agree nor Disagree; D = Disagree; SD = Strongly Disagree; WA = Weighted Average 44
  • 9. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 Table 4: Opinions on Participative Management in Jute industry in post liberalization in Srikakulam District S. SA A N D SD WA No. Statement (+1.0) (+0.5) (0.0) (-0.5) (-1.0) 1. Organization welcome employees 186 94 44 32 10 0.57 participative management. (50.82) (25.68) (12.02) (8.74) (2.73) 2. Participative management is followed 197 85 54 14 16 0.59 at all levels. (53.83) (23.22) (14.75) (3.83) (4.37) 3. Participative management promoting 206 91 32 12 25 0.60 cordial industrial relations. (58.19) (24.86) (8.74) (3.28) (6.83) 4. Participative management in the 197 78 43 30 18 0.55 organization improves the operational (53.83) (21.31) (11.75) (8.20) (4.92) efficiency of the workers. 5. Organization makes employee 168 136 30 19 13 0.58 responsible by involving through (45.90) (37.16) (8.19) (5.19) (3.56) participative management. Overall weighted average 0.57 SA = Strongly Agree; A =Agree; N = Neither Agree nor Disagree; D = Disagree; SD = Strongly Disagree; WA = Weighted Average Table 5: A comparative analysis of opinions on Participative Management in Jute Industry in Post Liberalization in North Coastal Andhra Pradesh S. Statement Weighted averages No. Visakhapatnam Vizianagaram Srikakulam 1. Organization welcome employees participative 0.35 0.64 0.57 management. 2. Participative management is followed at all 0.42 0.69 0.59 levels. 3. Participative management promoting cordial 0.33 0.74 0.60 industrial relations. 4. Participative management in the organization 0.43 0.73 0.55 improves the operational efficiency of the workers. 5. Organization makes responsible employee by 0.32 0.64 0.58 involving through participative management. Overall weighted average 0.37 0.69 0.57 Srinivas Subbarao Pasumarti, Professor and Head, Department of Management Studies, Commerce and HRM, Maharajahs Post Graduate College, (A NAAC Accredited “A” Grade College) Affiliated to Andhra University Vizianagaram. Presently he is also working as Director, Center for Management Research and Chief Coordinator, Center for Entrepreneurship. He has 18 years of experience in teaching and research at Post Graduate level (MBA) besides possessing industrial experience. He obtained MBA (Int.Business), MBA (Fin), M.Com. M.H.R.M., MA, M.Phil, B.L., Ph.D. PGDCS., P.G.D.Ex.M.M., PGD T & T.M from various reputed universities. Recently Berhampur University awarded him the D.Litt (Post Doctoral) on his thesis on “Foreign Direct Investment in Indian Tourism”. He is the first person in the faculty of Commerce & Management studies of Andhra university area who received the D.Litt in Commerce & Management studies. He is an alumnus of Indian Institute of Management (IIMA), Ahmedabad. He was a recipient of National Merit scholarships continuously for five years from the Andhra Pradesh State Government and Government of India. He is an approved research guide of Andhra University, Nagarjuna University and JNT University, Kakinada and Rayalaseema University PhD students. At present 12 scholars are pursuing their research under his guidance. He is an active member of various international management associations. He authored and edited 24 books in the area of Finance, Tourism, Cases in Management and one in Entrepreneurship and Small Business Management. Besides a list (115) of articles, book 45
  • 10. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.8, 2012 chapters, case studies, book reviews and research papers were published and presented in various national and international journals. He Presented papers in various national and international seminars & conferences held at Singapore, Malaysia, Thailand, Australia, Srilanka, Turkey, China and Japan. P. Suseela Rani, Associate Professor, Department of MBA, TRR College of Engineering & Technology, Patancheru, Medak (Dt.), A.P., India. She has 14 years of IT industry experience and three years of teaching experience. She obtained her master degrees i.e., MBA (Human Resource Management), M.Com. (Banking) and DCS (Diploma in computer Science) from Andhra University. At present she is pursuing her Ph.D. from Rayalaseema University. She published (15) articles, book chapters and research papers in various national journals. She presented papers in various national seminars and conferences. 46
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