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Workers participation in management

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Workers participation in management

  1. 1. CHANDAN RAJ Workers Participation in Management
  2. 2. Meaning <ul><li>Workers’ participation in management means giving scope for workers to influence the managerial decision-making process at different levels by various forms in the organisation. </li></ul><ul><li>The principal forms of workers’ participation are information sharing, joint consultation, suggestion schemes, etc. </li></ul><ul><li>Redistribution of power between management and workers in the direction of industrial democracy </li></ul>
  3. 3. <ul><li>Worker’s participation </li></ul><ul><li>arrangements resulting into the creation of various participative forums to associate workers with management </li></ul><ul><li>v/s </li></ul><ul><li>Participative management </li></ul><ul><li>Manager’s specific style in which he interacts with his people, leadership pattern </li></ul>
  4. 4. Objectives of Workers participation in management <ul><li>1. Economic objective </li></ul><ul><li>2. Social Objective </li></ul><ul><li>3. Psychological Objective </li></ul><ul><li>1 .Aware of Democratic right to influence the managerial decisions </li></ul><ul><li>2. Raise worker’ level of motivation and commitment (own decisions) </li></ul><ul><li>3.Cross-fertilisation and speedy communication of ideas </li></ul><ul><li>4. Avoid conflict and Foster better co-operation between labour and management . </li></ul>
  5. 5. Importance of Workers’ Participation in Management <ul><li>Mutual Understanding </li></ul><ul><li>Higher Productivity </li></ul><ul><li>Industrial Harmony </li></ul><ul><li>Industrial Democracy (right of self expression and opportunity to communicate views on policies, worker as responsible partner in decision making) </li></ul><ul><li>Less Resistance to change </li></ul><ul><li>Creativity and Innovation </li></ul>
  6. 6. Forms/level/degree of Participation <ul><li>Communication : to give and get info (sharing ) </li></ul><ul><li>Consultation : exchange opinions and views before decision taken </li></ul><ul><li>Co-determination : joint decision making </li></ul><ul><li>Self manageme nt : enjoying complete authority right from decision making to execution </li></ul>
  7. 7. Workers Participation in Management in India <ul><li>Indirect Representative : introduced by govt through legal provisions or notifications. </li></ul><ul><li>E.g Works Committee,Joint Management Council </li></ul><ul><li>Worker’s director etc. </li></ul><ul><li>Direct Participation : opportunity for each and every worker to participate in management through variety of mechanisms like suggestion schemes, small group activity ,quality circles etc. </li></ul>
  8. 9. Works Committee (1947) <ul><li>The industrial disputes act, 1947 provides for the setting up of works committee consisting of representatives of management and workers </li></ul><ul><li>Establishment employing 100 or more workmen or any day on preceding 12 months. </li></ul><ul><li>It meets frequently for discussion on common problems of the workers and the management. </li></ul><ul><li>After discussion, joint decisions are taken </li></ul><ul><li>problems of day to day working </li></ul>
  9. 10. List of items WC can deal with <ul><li>Conditions of work such as ventilation, lighting, temperature and sanitation </li></ul><ul><li>Amenities such as drinking water, canteen, dining ,crèches, rest rooms, medical and health rooms services </li></ul><ul><li>Safety and accident prevention, occupational diseases and protective equipment. </li></ul><ul><li>Adjustment of festivals and national holidays. </li></ul><ul><li>Administration of welfare funds. </li></ul>
  10. 11. <ul><li>Educational and recreational such as libraries, reading rooms, cinema-shows, sports, games, community welfare and celebrations, games, </li></ul><ul><li>Implementation and review of decisions arrived at meeting of works committees </li></ul>
  11. 12. Items excluded <ul><li>Wages and allowances </li></ul><ul><li>Bonus </li></ul><ul><li>Profit sharing </li></ul><ul><li>Work load fixation </li></ul><ul><li>Retrenchment or layoff </li></ul><ul><li>Housing services </li></ul><ul><li>Retirement benefits, PF , gratuity etc. </li></ul>
  12. 13. Reasons for failure of WC <ul><li>Exclusion of imp items </li></ul><ul><li>Lack of competence of representatives </li></ul><ul><li>Inter union rivalry </li></ul><ul><li>Recommendations are just advisory in nature </li></ul><ul><li>No machinery to enforce the decision </li></ul>
  13. 14. Joint Management Council(1958) <ul><li>Consists of equal number of representatives of management and employees ,not exceeding 12 in all. </li></ul><ul><li>Employees Representatives nominated by recognized trade union </li></ul>
  14. 15. <ul><li> AN UNDERTAKING MUST MEET THE FOLLOWING REQUIREMENTS FOR SETTING UP JMC’s </li></ul><ul><li>It must have 500 or more employees. </li></ul><ul><li>It should have a fair record of industrial relations. </li></ul><ul><li>It should have a strong and well organised trade union. </li></ul><ul><li>Willingness of employers, workers and trade unions </li></ul>
  15. 16. FEATURES OR FUNCTIONS of JMC <ul><li>1. Consultative Functions - council consulted by management on : </li></ul><ul><li>Administration of standing orders </li></ul><ul><li>New methods of production </li></ul><ul><li>Retrenchment </li></ul><ul><li>Closure, reduction in or cessation of operation </li></ul>
  16. 17. <ul><li>2.Information –receiving and suggestion making functions: </li></ul><ul><li>General economic situation. </li></ul><ul><li>The state of market, production and sales programmes. </li></ul><ul><li>Organisation and general running of the undertaking. </li></ul><ul><li>The annual balance sheet and profit and loss account statement and connected documents with explanations. </li></ul><ul><li>Methods of manufacture and work </li></ul><ul><li>long term plan for expansion etc. </li></ul>
  17. 18. <ul><li>3.Administrative functions : </li></ul><ul><li>Welfare measures </li></ul><ul><li>Supervision of safety measures </li></ul><ul><li>Operation of vocational training and apprenticeship schemes </li></ul><ul><li>Preparation of schedules of working hours , breaks , holidays </li></ul><ul><li>Payment of rewards for valuable suggestions </li></ul>
  18. 19. Reasons for unsatisfactory working or partial success <ul><li>Trade union fear of loosing power </li></ul><ul><li>Weak representatives </li></ul><ul><li>Employers who already have WC and TU find it superflous </li></ul>
  19. 20. Workers’ Directors(1970) <ul><li>Workers’ representative on the board of directors of public sector enterprise and nationalized bank </li></ul><ul><li>Worker director is elected by the most representative TU </li></ul>
  20. 21. Reasons for failure <ul><li>Wd’s were ill equipped to understand the intricacies of board level matters </li></ul><ul><li>Secrets might be leaked out </li></ul><ul><li>Union opposition </li></ul>
  21. 22. Worker Participation scheme(1975) <ul><li>SHOP COUNCILS </li></ul><ul><li>For each dept or shop floor, establishment having more than 500 workmen </li></ul><ul><li>Each council consists of equal number of representatives of employers and workers. </li></ul>
  22. 23. <ul><li>Functions : </li></ul><ul><li>Assistance to management in achieving monthly/yearly production targets </li></ul><ul><li>Improvement of production-elimination of wastage and optimum utilization of resources </li></ul><ul><li>Study of absenteeism in shops/dept and steps to reduce that </li></ul><ul><li>Assistance in maintaining general discipline </li></ul><ul><li>Physical conditions of working etc. </li></ul><ul><li>Welfare and health measures </li></ul><ul><li>Two way communication </li></ul>
  23. 24. <ul><li>JOINT COUNCILS </li></ul><ul><li>Operate for industrial unit as a whole, more than 500 workmen </li></ul><ul><li>The chief executive of the unit is the chairman of the JC </li></ul><ul><li>Meets at least once in quarter </li></ul><ul><li>Decision on the basis of consensus </li></ul>
  24. 25. <ul><li>Functions: </li></ul><ul><li>Optimum production </li></ul><ul><li>Matters not solved in shop council or having bearing on another shop/dept </li></ul><ul><li>Development of skills of workmen </li></ul><ul><li>Awarding of rewards for valuable suggestions </li></ul><ul><li>General health, safety and welfare measures for the unit or the plant </li></ul>
  25. 26. Direct participation <ul><li>Two way communication: more imp in knowledge workers </li></ul><ul><li>Suggestion schemes </li></ul><ul><li>5S concept : Japan for TQM-house keeping practices </li></ul><ul><li>Shitseke: discipline- maintain and review standards </li></ul><ul><li>Seiton : orderliness –set in order </li></ul><ul><li>Seiketsu: standardization of work practices </li></ul><ul><li>Seiri: clearing (sorting) – keep only essential items rest discarded </li></ul><ul><li>Seiso: sweeping/washing,cleanliness of workplace </li></ul>
  26. 31. <ul><li>PDCA concept - to improve organizational effectiveness </li></ul><ul><li>Plan-set target </li></ul><ul><li>Do-work to meet target </li></ul><ul><li>Check : target achieved or not </li></ul><ul><li>Act –to remove difficulties or modify( to improve organizational effectiveness) </li></ul>
  27. 32. <ul><li>Quality of work life (QWL ): joint programmes of cooperation or ‘working together’ on the shop floor to improve quality of work life </li></ul><ul><li>-refers to favourableness or unfavourableness of a job environment for employees in the organization </li></ul><ul><li>E.G Adequate and fair compensation </li></ul><ul><li>Safe and healthy working conditions </li></ul><ul><li>Opportunity to use and develop human capacities </li></ul><ul><li>Opportunity for career growth </li></ul><ul><li>Social integration in work force etc. </li></ul>