WORKERS PARTICIPATION IN MANAGEMENT

Meaning of WPM
WPM is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of an undertaking and through which they express their opinion and contribute to mgt decisions.

Objectives of WPM

Increasing productivity for the general benefit of the enterprise, the employees and the community; Giving employees a better understanding of their role in the working of the industry & of the production process; and Satisfying the workers urge for selfexpression, thus leading to industrial peace, better relations and increased cooperation.

Forms of WPM
Informative & associative participation Consultative participation Administrative participation Decision participation

Participative forums in India

Works committees; Joint mgt. Councils; Joint councils; Unit councils; Plant councils; Shop councils; Workers representative on the board of mgt; and

Conditions necessary for effective working of the scheme

Congenial work environment Well defined roles Faith in the efficacy of the scheme Wide publicity Free flow of information throughout the enterprise Should be based on mutual trust Decisions taken by different participatory forums must be sincerely carried out in the stipulated time

Reasons for failure of WPM

Ideological differences between the employer and the employees regarding the degree of participation. Failure to imbibe the spirit of participation by the parties Multiplicity of participative forums Lack of strong trade unionism Unhappy IR Illiteracy of workers Non co-operative attitude of the working class Delays in the implementation of the decisions of the participative bodies

Works Committee (1947)

The industrial disputes act, 1947 provides for the setting up of works committee consisting of representatives of management and workers
Establishment employing 100 or more workmen or any day on preceding 12 months. It meets frequently for discussion on common problems of the workers and the management.

After discussion, joint decisions are taken

problems of day to day working

List of items WC can deal with

Conditions of work such as ventilation, lighting, temperature and sanitation

Amenities such as drinking water, canteen, dining ,crches, rest rooms, medical and health rooms services Safety and accident prevention, occupational diseases and protective equipment. Adjustment of festivals and national holidays. Administration of welfare funds.

Educational and recreational such as libraries, reading rooms, cinemashows, sports, games, community welfare and celebrations, games,
Implementation and review of decisions arrived at meeting of works committees

Items excluded
Wages and allowances Bonus Profit sharing Work load fixation Retrenchment or layoff Housing services Retirement benefits, PF , gratuity etc.

Reasons for failure of WC

Exclusion of imp items Lack of competence of representatives Inter union rivalry Recommendations are just advisory in nature No machinery to enforce the decision

Joint Management Council(1958)

Consists of equal number of representatives of management and employees ,not exceeding 12 in all. Employees Representatives nominated by recognized trade union

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

FEATURES OR FUNCTIONS of JMC

1. Consultative Functions -council consulted by management on : Administration of standing orders New methods of production Retrenchment Closure, reduction in or cessation of operation

2.Information receiving and suggestion making functions: General economic situation. 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. Methods of manufacture and work long term plan for expansion etc.

3.Administrative functions :

Welfare measures Supervision of safety measures Operation of vocational training and apprenticeship schemes Preparation of schedules of working hours , breaks , holidays Payment of rewards for valuable suggestions

Reasons for unsatisfactory working or partial success

Trade union fear of loosing power Weak representatives Employers who already have WC and TU find it superfluous

Worker Participation scheme(1975)

SHOP COUNCILS

For each dept or shop floor, establishment having more than 500 workmen Each council consists of equal number of representatives of employers and workers.

Functions : Assistance to management in achieving monthly/yearly production targets Improvement of production-elimination of wastage and optimum utilization of resources Study of absenteeism in shops/dept and steps to reduce that Assistance in maintaining general discipline Physical conditions of working etc. Welfare and health measures Two way communication

JOINT COUNCILS Operate for industrial unit as a whole, more than 500 workmen The chief executive of the unit is the chairman of the JC Meets at least once in quarter Decision on the basis of consensus

Functions:
Optimum production Matters not solved in shop council or having bearing on another shop/dept Development of skills of workmen Awarding of rewards for valuable suggestions General health, safety and welfare measures for the unit or the plant

Workers Directors(1970)
Workers representative on the board of directors of public sector enterprise and nationalized bank Worker director is elected by the most representative TU

Reasons for failure

Wds were ill equipped to understand the intricacies of board level matters Secrets might be leaked out Union opposition

Direct participation
Two way communication: more imp in knowledge workers Suggestion schemes 5S concept : Japan for TQMhouse keeping practices

Shitseke: discipline- maintain and review standards Seiton : orderliness set in order Seiketsu: standardization of work practices Seiri: clearing (sorting) keep only essential

PDCA concept- to improve organizational effectiveness

Plan-set target Do-work to meet target Check : target achieved or not Act to remove difficulties or modify( to improve organizational effectiveness)

Quality of work life (QWL): joint programmes of cooperation or working together on the shop floor to improve quality of work life -refers to favourableness or unfavourableness of a job environment for employees in the organization

Adequate and fair compensation Safe and healthy working conditions Opportunity to use and develop human capacities Opportunity for career growth Social integration in work force etc.