Unit 2

UNIT - II
WORKERS PARTICIPATION IN MANAGEMENT
S.Suresh Kumar,Asst.Professor,FMS,SSGI
21/01/2013
Meaning of Working Participation in Management

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 management decisions.
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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 self-expression, thus leading to industrial peace, better relations and increased co-operation.
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Forms of WPM
Informative & associative participation Consultative participation Administrative participation Decision participation
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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 Workers participation in share capital.
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Conditions necessary for effective working of the scheme

Congenial work environment Well defined roles Faith in the efficacy of the scheme Wide publicity Should be evolutionary 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
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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
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Workers Participation in Management in India
Workers participation in Management in India was given importance only after Independence. Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the setting up of works committees. The joint management councils were established in 1950 which increased the labour participation in management. Since July 1975 the two-tier participation called shop councils at shop level and Joint councils were introduced. Workers participation in Management Bill, 1990 was introduced in Parliament which provided scope for up liftment of workers.
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Reasons for failure of Workers participation Movement in India:
Employers resist the participation of workers in decisionmaking. This is because they feel that workers are not competent enough to take decisions. 2) Workers representatives who participate in management have to perform the dual roles of workers spokesman and a comanager. Very few representatives are competent enough to assume the two incompatible roles. 3) Generally Trade Unions leaders who represent workers are also active members of various political parties. While participating in management they tend to give priority to political interests rather than the workers cause.
1)
9 S.Suresh Kumar,Asst.Professor,FMS,SSGI 22/01/2013
Schemes of workers participation have been initiated and sponsored by the Government. However, there has been a lack of interest and initiative on the part of both the trade unions and employers. 5) In India, labour laws regulate virtually all terms and conditions of employment at the workplace. Workers do not feel the urge to participate in management, having an innate feeling that they are born to serve and not to rule. 6) The focus has always been on participation at the higher levels, lower levels have never been allowed to participate much in the decision-making in the organizations.
4)
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7)
The unwillingness of the employer to share powers with the workers representatives, the disinterest of the workers and the perfunctory attitude of the government towards participation in management act as stumbling blocks in the way of promotion of participative management
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Measures for making Participation effective:

Employer should adopt a progressive outlook. They should consider the industry as a joint endeavour in which workers have an equal say. Workers should be provided and enlightened about the benefits of their participation in the management. 2) Employers and workers should agree on the objectives of the industry. They should recognize and respect the rights of each other. 3) Workers and their representatives should be provided education and training in the philosophy and process of participative management. Workers should be made aware of the benefits of participative management.
1)
Measures for making Participation effective:
cont
There should be effective communication between workers and management and effective consultation of workers by the management in decisions that have an impact on them. 5) Participation should be a continuous process. To begin with, participation should start at the operating level of management. 6) A mutual co-operation and commitment to participation must be developed by both management and labour. Modern scholars are of the mind that the old adage a worker is a worker, a manager is a manager; never the twain shall meet should be replaced by managers and workers are partners in the progress of business
4)
COLLECTIVE BARGANING
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Collective bargaining is concerned with the relations between employers acting through management and organised labour. It is concerned not only with the negotiation of a formal labour agreement but also with the day-to-day dealings between management and the union
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Evolution of Collective Bargaining

Coined by Sydney and Beatrice Webb Industrial Revolution Great Britain The Indian Scenario:
Gandhiji - the leader of the Ahmedabad textile workers Idea gathered interest only after the Second World War GOI took steps like setting up of machinery for
negotiations, conciliation and arbitration
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Definition:
According to Dale Yoder, Collective bargaining is the term used to describe a situation in which the essential conditions of employment are determined by bargaining process undertaken by representatives of a group of workers on the one hand and of one or. more employers on the other .
In the words of Flippo, Collective bargaining is a process in
which the representatives of a labour organization and the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer-union relationship.
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Features of Collective Bargaining

It is a collective process. The representatives of both workers
and management participate in bargaining. It is a continuous process. It establishes regular and stable relationship between the parties involved. It involves not only the negotiation of the contract, but also the administration of the contract. It is a flexible and dynamic process. The parties have to adopt a flexible attitude through the process of bargaining. It is a method of partnership of workers in management
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Subject-matter of Collective Bargaining

Collective bargaining has two pronged concerns: 1) Chalking out a broad contract of employment relationship between employers and workers, and 2) The administration of the contract. In fact, it has been recognized as a method of determining the wage rates and other terms and conditions of employment and of regulating the relations between the management and organized labour. Collective bargaining includes provisions with respect to hiring, lay-offs, promotions, transfers, work scheduling, work assignment, wages, welfare programmes, retirement benefits, discipline, etc.
The Indian Institute of Personnel Management suggested the following subject matter of collective bargaining: Purpose of agreement, its scope, and the definition of important terms. Rights and responsibilities of the management and of the trade union . Wages, bonus, production norms, leave, retirement benefits, and terms and conditions of service. Grievance redressal procedure. Methods and machinery for the settlement of possible future disputes . Termination clause.
TYPES OF BARGAINING
1. Conjunctive/Distributive Bargaining Here, the parties try to maximize their respective gains. In this method, the parties try to settle economic issues through a zerosum game. Zero-sum game is where my gain is your loss and your gain is my loss. Neither party is willing to yield an inch. 2. Co-operative / Integrative Bargaining Both parties are more open to coming down from their high horses and co-operating. They are willing to negotiate the terms of employment in a flexible way. This willingness is because of recession and the need to be able to survive in such difficult times. This would not be possible without each others support and hence co-operative bargaining
Levels At Which Collective Bargaining Is Undertaken
Enterprise Or Plant Level
Industry-Cum-Region wide Agreements
Sectoral Collective Bargaining At National Level
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Levels At Which Collective Bargaining Is Undertaken
cont
1.
National Level Agreement : Bargaining between one or more employers/companies/corporations or one or more employers association on one side and one or more unions established at national ,industry,nation,region or plant level on the other.
2. Industry cum region wide Agreements :Bargaining between one or more employers/companies/corporations or one or more employers association on one side and one or more unions established at industry, region or plant level on the other. 3. Firm/plant level agreement With unions established at plant, locality level
Collective Bargaining Process

Prepare
Discuss Propose
Bargain
Agreement
Types of Collective Agreements in India
In India, there are three types of agreements, namely 1. Voluntary agreements(Bipartite Agreement) 2. Settlements, and 3. Consent awards
1.Voluntary/Bipartite Agreement: Bipartite agreements which are totally voluntary for the purpose of implementation. Bipartite settlements negotiated and settled primarily by the parties but registered before a conciliator.
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Cont
2. Settlement : Written agreement between employer and
workers arrived during Conciliation proceeding is applicable to all the present and future workers.
3. Consent awards: When the parties have a dispute pending
before a tribunal, but yet negotiate a contract, which is recorded by the tribunal, the contracts so negotiated acquire legal status.
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CONDITIONS FOR SUCCESSFUL COLLECTIVE BARGAINING

Trade Union Recognition Knowledge , awareness and skills of workers Support of Labour Administration Authorities Good Faith : transparency Proper Internal Communication
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Pre-requisites for collective bargaining:

Recognition of the Bargaining Agent(TU) Deciding the Level of Bargaining Determining the Scope and Coverage of Bargaining. Open mind Home Work on demands Internal union democracy Importance to output Strikes/ lockouts
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PERCEPTIONS ON COLLECTIVE BARGAINING

1. CB essentially means negotiations between the labor and
management 2. CB should just not stop at the negotiations but also go on to be implemented; otherwise the entire process of CB will be rendered futile. 3. It is mostly the formal sector that benefits out of the CB process. 4. Once both the parties know what they want, negotiations become easier and better.
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Cont.
5. Obviously all the above mentioned conditions are required
successful for CB but the most essential among them is the good faith 6. CB agreement is a written format and it is essential because that acts as a legal framework and as a guide to their relationships on certain matters for a specified period of time. 7. Today because of the weakening unions, collective bargaining is not highly practiced, yet at the other end there are organizations which take care of the workers well enough so that collective bargaining is not highly required.

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UNIT - II

WORKERS PARTICIPATION IN MANAGEMENT

Meaning of Working Participation in Management

Participative forums in India

Conditions necessary for effective working of the scheme

be sincerely carried out in the stipulated time

Reasons for failure of WPM

Workers Participation in Management in India

Reasons for failure of Workers participation Movement in India:

Measures for making Participation effective:

Measures for making Participation effective:

Evolution of Collective Bargaining

negotiations, conciliation and arbitration

In the words of Flippo, Collective bargaining is a process in

Features of Collective Bargaining

Subject-matter of Collective Bargaining

Levels At Which Collective Bargaining Is Undertaken

Enterprise Or Plant Level

Industry-Cum-Region wide Agreements

Sectoral Collective Bargaining At National Level

Levels At Which Collective Bargaining Is Undertaken

Collective Bargaining Process

Types of Collective Agreements in India

2. Settlement : Written agreement between employer and

3. Consent awards: When the parties have a dispute pending

CONDITIONS FOR SUCCESSFUL COLLECTIVE BARGAINING

Pre-requisites for collective bargaining:

PERCEPTIONS ON COLLECTIVE BARGAINING

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