WORKER’S

EMPOWERMENT AND
PARTICIPATION IN
MANAGEMENT
 WORKER’S EMPOWERMENT

¶ Empowerment means encouraging and allowing

individuals to take personal responsibility for
improving the way they do their jobs and contribute to
the organisation’s goals.

¶ It requires the creation of culture which would

encourage people at all levels to feel that they can
make a difference and also help them to acquire the
confidence and skills to do so.
 WORKER’S EMPOWERMENT
¶ The famous example of empowerment is Total
Quality Management which is an employee
driven process for ensuring best possible quality
products and services for the satisfaction of
customers.

¶ TQM empowers employees at all levels in order

to tap their full creativity, motivation and
commitment.

¶ The other practices which encourage employee

involvement include suggestion system, job
enlargement, job enrichment, quality circle,
participative leadership, self-managed team etc.
 INDUSTRIAL DEMOCRACY
 MEANING:
¶ It means the application of democratic principles in managing
industrial units.

¶ In industrial democracy, workers are treated as responsible

partners of an enterprise and are allowed to participate in the
decision-making process.

¶ Workers are given the right of self-expression and an opportunity

to communicate their own views on framing the policies of the
company.
 WORKER’S PARTICIPATION
¶ . There are two distinct groups of people in an
undertaking:

¶ Managers performing managerial functions

¶ Workers performing operative functions the basic

distinction between those who occupy managerial
positions and workers is that managers are held
responsible for the work of their subordinates while
workers are accountable only for their own work.
 WORKER’S PARTICIPATION
¶ Participation may be defined as taking part in sharing
of power and status between the managers and the
workers.

¶ Workers’ participation in management seeks to bridge

this gap authorising workers to take part in the
managerial process.

¶ Thus, 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.
 OBJECTIVES OF WORKERS’ PARTICIPATION

¶ Increasing productivity for the general benefit of the

enterprise, the employees and the community.

¶ Giving employees a better understanding of their role.

¶ Satisfying the worker’s urge for self-expression.

¶ Achieving industrial peace, better relations and

increased co-operation in industry.

¶ Development of human personality.

¶ Development of leaders from within the industry.

 FORMS OF WORKERS’ PARTICIPATION

¶ Ascending participation : In this case, the workers may

be given an opportunity to influence managerial
decisions at higher levels through elected
representatives to joint councils or the board of
directors of the company.

¶ Descending participation : In this case, they may be

given more power to plan and to make decisions about
their own work (e.g. delegation and job enlargement).
This form of participation is quite popular in many
organisations.
  NATURE OF WORKERS’
PARTICIPATION
 THREE SCHOOLS OF THOUGHT:

¶ Influencing through information sharing: It looks at

participation as a process of decision-making in which
subordinates are allowed to have a ‘say’ or ‘to influence’
the decision-making.

¶ Joint decision-making: It views participation as actual

decision-making by the workers and not merely having a
‘say’ in it or influencing it.

¶ Self-control: It implies a process in which the workers

exercise control on the mechanism of decision-making as
full- fleged and active members.
  MODES OF PARTICIPATION

¶ WORKS COMMITTEE: It consists of equal

number of representatives of both employers
and workers. It meets frequently for
discussion on common problems of the
workers and the management. After
discussion, joint decisions are taken and such
decisions are binding on both the parties.
Matters like wage payment, bonus, training,
discipline etc are discussed in such meetings.
  MODES OF PARTICIPATION
¶ JOINT MANAGEMENT COUNCIL: It
involves setting up of joint committees
represented by the workers and the
management to discuss and give
suggestions for improvement with
regard to matters of mutual interest. The
decisions of such committees are not
binding on either party, yet they are
implemented as they are arrived at by
mutual consultations. The subject-
matter of joint consultations includes
such problem areas as labour welfare,
safety measures, grievance redressal,
training, working hours, etc.
¶ COLLECTIVE BARGAINING: It is an industrial relations process
in which employees through their elected leaders, participate on
equal basis with management in negotiating labour agreements,
in administering the agreements, and in redressing grievances of
the workers.
¶ CO-PARTNERSHIP: In this, workers are allowed to purchase
shares of the company and thus become its co-owners. In this
way, they can participate in the management of the company
through their elected representatives on the Board of Directors.
As shareholders, the workers can also attend general meetings of
shareholders and exercise their voting rights.
¶ WORKER-DIRECTOR: In this, a workers’ representative is being
given a seat on the board of directors. In countries where the
trade unions are very strong as in Britain and U.S.A., the trade
unions definitely reject the idea. A worker-director would be in
minority and thus his views would carry little weight with the
board. Since the worker-director is the representative of a trade
union, he will always take a biased for the benefit of workers. He
may overlook the interests of the organistaion which has certain
obligations towards the society.
¶ SUGGESTION SCHEME: Under this scheme, the
workers are encouraged to give their suggestions
to the management on various administrative
matters, and their suggestions are considered
carefully and accepted, if found suitable. In
addition, rewards are also given to those who
make constructive suggestions.
¶ GRIEVANCE PROCEDURE: It provides an
opportunity to workers to participate in
decisions on matters affecting their interests.
The Model Grievance Procedure evolved by the
15th Indian Labour Conference has a three-tier
system for settlement of grievance at the level of :
a) the immediate supervisor, b) departmental
head and c) a bipartite grievance committee
representing the management and the union.
¶ QUALITY CIRCLE: It is a unique concept which
provides for voluntary participation by the
workers in the direction of quality improvement
and self-development.
 WORKERS PARTICIPATION IN
MANAGEMENT IN INDIA
 WORKS COMMITTEES
¶ The industrial disputes act, 1947, provides for the
setting up of works committee consisting of
representatives of management and employing 100 or
more workmen.
 FUNCTIONS:
¶ Conditions of work such as ventilation, lighting,
temperature and sanitation.
¶ Amenities such as drinking water, canteen, dining
rooms, crèches, rest rooms, medical and health
services
¶ Safety and accident prevention, occupational diseases
and protective equipment.
¶ Adjustment of festivals and national holidays.
¶ Administration of welfare funds.
¶ Educational and recreational activities, such as
libraries, reading rooms, cinema-shows, sports,
games, community welfare and celebrations.
¶ Promoting thrift and savings.
¶ Implementation and review of decisions arrived
at meeting of works committees.
The national commission on labour (1969)
pointed out that the effectiveness of the works
committees depends upon the following factors:
¶ A more responsive attitude on the part of the
management.
¶ Adequate support from the unions.
¶ Proper appreciation of the scope and functions
of the works committees.
¶ Whole-hearted implementation of the
recommendations of the works committees.
¶ Proper co-ordination of the functions of the
multiple institutions at the plant.
 JOINT MANAGEMENT COUNCIL
¶ JMCs represent a higher form of workers participation
in management. The aim is to change the social
structure of enterprises from inside. They lead the
private sector to fit into the framework of socialist
order – the idea that socialist order should be achieved
by gradual and peaceful changes.
 AN UNDERTAKING MUST MEET THE FOLLOWING
REQUIREMENTS FOR SETTING UP JMCS:
¶ It must have 500 or more employees.
¶ It should have a fair record of industrial relations.
¶ It should have a strong and well organised trade
union.
¶ Willingness of employers, workers and trade unions.
¶ Private employers ought to be members of the leading
employers organisation.
¶ The union should be affiliated to one of the central
federations.
 FEATURES OR FUNCTIONS:
 The JMC should be consulted by the
management on the matters such as:
¶ Retrenchment
¶ Closure, reduction in or cessation of operation
 The council would also have to receive
information to discuss and to give suggestions
on:
¶ General economic situation of the concern.
¶ The state of market, production and sales
programmes.
¶ Organisation and general running of the
undertaking.
¶ The annual balance sheet and profit and loss
account statement and connected documents
with explanations.
¶ Long term plan for expansion, re-development
etc.
 The council would be entrusted with administrative
responsibility in respect of:
¶ Administration of welfare measures.
¶ Supervision of safety measures.
¶ Operation of vocational training and apprenticeship
schemes.
¶ Preparation of schedules of working hours and breaks
of holidays.
¶ Payment of reward for valuable suggestions received
from the employers.
¶ All matters, such as, wages, bonus etc, which are
subjects for collective bargaining are excluded from
the scope of the council. Individual grievances are also
excluded from its scope.
 WORKER DIRECTORS
¶ The idea of worker-directors has gained some support
in India, particularly in public sector undertakings and
nationalised organisations. this arrangement,
however, is far from being common. The few
undertakings where it has been implemented are the
Hindustan Aeronauticals and 14 nationalised banks.
 SHOP COUNCILS
¶ The scheme was introduced as a part of the 20 point
programme during the period of emergency.
 FUNCTIONS:
¶ Assist management in achieving monthly/yearly
targets.
¶ Improvement of production, productivity and
efficiency, including elimination of wastage and
optimum utilisation of machine capacity and
manpower.
¶ Specifically identify areas of low productivity and take
necessary corrective steps at shop level.
¶ To study absenteeism in the shop/department and
recommend steps to rectify the situation.
¶ Safety measures.
¶ Assist in maintaining general discipline in the
shop/department.
¶ Physical conditions of working, such as, lighting,
ventilation, noise, dust etc and reduction of fatigue.
¶ Welfare and health measures to be adopted for
efficient running of the shop/department
¶ Ensure proper flow of adequate two-way
communication between the management and the
workers, particularly on matters relating to
production figures, production schedules and progress
in achieving the targets.
 REQUIREMENTS OF SUCCESSFUL
WORKER’S PARTICIPATION
¶ The attitude of the management must be broad,
progressive and democratic. It must be willing to
associate workers and discuss the problems freely with
them.
¶ The workers must have a strong trade union with
enlightened leadership. They must have willingness to
participate in the management of the enterprise.
¶ Management and workers must understand clearly the
objectives of such participation. Management should
not take it as an imposed liability and workers should
not use it for expressing their grievances and demands
only.
¶ Existence of atmosphere of trust, faith, confidence and
recognition is a must. There must be a genuine desire
on the part of management and workers to understand
each other to arrive at decisions acceptable to both the
parties.
¶ Labour - management relations should be cordial or
atleast there should be no tension in the relations.
There should be no blockage in communication
between them.
¶ For successful participation, it is necessary that
employees are sufficiently informed about
participation programme and they are given proper
training in the field. They must be taught just what is
expected of them and how they are expected to
perform.