BBA PROGRAMME

UNIVERSITY OF PUNE

A
PROJECT REPORT
ON
THE
WORKER’S PARTICIPATION IN MANAGEMENT
SUBMITTED BY
RAVI KATARE
T.Y.BBA
SUBMITTED TO
UNIVERSITY OF PUNE
AS A PARTIAL FULFILLMENT
OF THE REQUIREMENT OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINSTRATION
UNDER THE GUIDANCE OF
PROF. (Mrs.) PRIYA RANBISHE
AUDYOGIK SHIKSHAN MANDALS,
COLLEGE OF COMMERCE, SCIENCE AND
INFORMATION TECHNOLOGY.
CHIKHALI ROAD, PUNE – 411019

COLLEGE OF COMMERCE, SCIENCE AND INFORMATION TECHNOLOGY, CHINCHWAD

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SR.NO PARTICULARS PAGE.

NO
CHAPTER INTRODUCTION
-1
CHAPTER RESEARCH DESIGN
-2
a)Objective of the study
b) Methodology of Data
Collection
c)Scope of the study
d)Limitations of the study
CHAPTER THEORETICAL FRAMEWORK
-3

CHAPTER PRESENTATION ANALYSIS

-4 AND INTERPRETATION OF
DATA
CHAPTER FINDINGS & SUGGESTIONS
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-5

CHAPTER CONCLUSION
-6
CHAPTER BIBLIOGRAPHY & ANNEXURE
-7

CHAPTER-
III
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COMPANY
PROFILE

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MASK POLYMERS COMPANY PROFILE

Basic Information
Company Name: Mask Polymers Pvt. Ltd

Business Type: Manufacturer /supplier/Exporter

Teflon(Ptfe) Products, Rubber moulded Products,

Product/Services: Teflon rods, Ptfe seals, Du(Teflon coated) bearings,
Ptfe filled gaskets, Teflon seals, Teflon bushes etc

Number of
101 - 500 People
Employees:

Company Website
http://www.maskpolymer.com
URL:

Bankers: SBI,IDBI

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Ownership
BBA PROGRAMME & Capital
UNIVERSITY OF PUNE
Year Established: 1998

Legal
Representative/Business Mr.Rajendra Maske
Established Owner:
in 2000 is a one – stop shop for rubber & Teflon components dedicated to
develop a radically new product gramet, consistent quality, reliability and time supplies. We
are specialized in manufacturing Rubber to Teflon & Metal to Teflon bonded products.

Our Sister concern M/s Mask Seals Company established in 1997 is high quality Teflon
products. The Company started with fluoropolymers and gradually expanded to an increasingly
wide range of technical products in high quality technopolymers

Introduction
An ISO/TS 16949:2009 certified company offering a wide range of products like Air Intake
Ducts, Bellows, Centre Support Bearings, Chain Guide & Chain Tensioners, Computerized
Mixing Systems, Engine Mounts, etc.

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Banking on our rich experience, we, Mask Polymers Pvt. Ltd., have created a niche for
ourselves in this highly competitive market. Since the commencement of our business operation
in the year 2000, we have been forging strong and mutually-enriching relationships with our
valued customers. Our unmatched designing and engineering techniques has helped us in
providing superior quality range of products at highly competitive prices to clients.

We are known as a leading manufacturer, exporter and supplier of Air Intake Ducts, Bellows,
Centre Support Bearings, Chain Guide & Chain Tensioners, Computerized Mixing Systems,
Engine Mounts, etc. Our products are packed with exemplary features and find multifarious
application across diverse industrial sectors. These products are developed after intensive
research work conducted as per ongoing market dynamics. Thus, our entire product range is
highly advanced and offers complete satisfaction to the user.

Product Range
Established in 2000, Mask Polymers Pvt. Ltd., is a one-stop shop for Rubber & Teflon
Components. We are dedicated to develop a radically new product gamut with consistent
quality, reliability and timely supplies. We are specialized in manufacturing:

Air Intake Ducts Head Lamp Caps & Blinker Stay

Bellows Injection Moulding
Centre Support Bearings Moulded Ducts
Chain Guide & Chain Tensioners Silicon Rubber Components
Computerized Mixing Systems Starps & Packings
Engine Mounts Suspension Bumpers
Extruded Hoses TPE & TPU Moulded Products
Flexible Couplings Viton Rubber Components
Gaskets & O-Rings Grommets

Some of the salient features of our products are:

• Rugged construction
• Dimensionally accurate
• Standardized finishes
• Easy to install.

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Unmatched Quality
We at Mask Polymers Pvt. Ltd. are committed to enhancing customer satisfaction through
continual improvement in the effectiveness of quality management system., by providing the
products as per customer's specific requirements and involvement of employees and suppliers.
Thus, we unfailingly give paramount importance to the quality of all our products, which helps
us attain utmost satisfaction of our customers.

Our comprehensive quality policy states in detail different norms and standards that we hold fast
to as a customer-centric organization. Following high quality benchmarks, we additionally
improve the efficacy of our quality management system and its process, time to time. Our
unwavering efforts and uncompromising attitude towards quality has endowed us with the
ISO/TS 16949:2009 quality certification that aptly bears testimony to the quality of all our
offerings.

Being an ISO certified professional body, we also recruit a team of quality experts having
excellent knowledge and rich experience in their domain. This QA team implements latest
techniques and established strategies in a streamlined manner to ensure that final product strictly
conform to international quality standard and design specifications.

State-Of-The-Art Infrastructure
We are equipped with a state-of-the-art infrastructure that allows us to meet the specific
requirements of our clients. Our production unit is spread over a sprawling area and has a large
installation capacity. It is supported with sophisticated technology and superior machines, which
are operated and managed by an efficient workforce. With the help of our product development
team, R&D experts and sales professionals, we utilize all available resources at this unit and
tailor our products to meet the specific needs of clients.

Our Strengths
Some of the factors that have helped us leapfrog market competition and forge longstanding
business relations with our clients are:

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• Well-knit workforce comprising dynamic professionals

• Sound infrastructure with a robust production unit
• Stringent quality control measures
• Wide client network across the world
• On time delivery of products
• Easy modes of payment
• Competitive pricing policy.

QUALITY POLICY:-
We at Mask Polymers Pvt. Ltd. are committed for enhancing customer satisfaction through
continual improvement in effectiveness of quality management system, by providing the
products as per customer specified requirements and involvements of employees and suppliers.

QUALITY OBJECTIVES:-
We at Mask Polymers Pvt. Ltd .are committed for enhancing customer satisfaction through
continual improvement in effectiveness of quality management system, by providing the product
as per customer specified requirements and involvements of employees and suppliers.

STANDARD CERTIFICATIONS:-
The Mask Polymers Pvt.Ltd is certified by ISO/TS 16949:2009 and other certifications include

OUTLINE OF OPERATIONS

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1. AUTO WEIGHING SYSTEM :-

• Chemical Weighing Station With Centralized control of all Recipe.

• Computerized batch weighing system, mistake proofing in wrong weighing.

Salient Features :-

• Consistency in each & every batch.

• Auto-loading of Carbon & Oil directly into the Kneader, making Carbon Less / Clean
Factory
• 100 % Mistake proofing, Eliminating any possibility of mixing wrong chemical /
missing chemical.
• FIFO for all the chemicals used in Mixing.
• Better traceability of batches Mixed

CHEMICAL WEIGHING

OIL WEIGHING:-

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CARBON LOADING:-

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2. MIXING SYSTEM :-

MIXING:-

o Dispersion kneader.
o Mixing mills with stock blender.
o Auto rubber performer (To control moulding inputs + 2% for better quality &
weighing control).
o Hot feed extruders.

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3. MOULDING TECHNOLOGY :-

MOULD SHOP:-

MOULD SHOP:-

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RESEARCH & DEVELOPMENT :-

RUBBER :

1. Rubber Compounding – Formulation as per component, requirement

and / or application.
2. Testing of compound / formulation.
3. Design and Manufacturing of Compression, Transfer & Injection Mould.

TESTING :-

FULLY EQUIPPED IN HOUSE TEST LAB

RUBBER TESTING FACILITIES :-

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• Rheometer
• UTM for tensile, Elongation and modulus checking
• Polymer identification set up
• Muffle furnace for checking ash content
• Compression set apparatus.
• Soxhelt extraction apparatus (carbon content).
• Melting point apparatus.
• Electronic Specific gravity tester.
• Oil/Air Ageing Oven.
• PH- Meter.
• SPM Machine to check Leakage and Blockage in CNG / LPG & Petrol Duct Assy.

TESTING MACHINES :-

TESTING MACHINES:-

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PRODUCTS:-

Air Filter Ducts AVM Engine Mounts

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Bellows Center Support Bearing

CNG Duct Ducts

Gear Shifter Components Guide Chains

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Head Lamp Caps LPG Ducts

O Rings Rubber Sleeves

Rubber Straps
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Rubber Stay

S Suspensi
Silicon Grommets ons Grommets

Wiring Harness Grommets

CLIENTS :-

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CHAPTER-
IV

THEORETICAL
FRAMEW
ORK

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WORKER’S PARTICIPATION IN MANAGEMENT

INTRODUCTION

Three groups of¬ managerial decisions affect the workers of any industrial establishment and
hence the workers must have a say in it.

 Economic decisions – methods of manufacturing, automation, shutdown, lay-offs, mergers.

 Personnel decisions – recruitment and selection, promotions, demotions, transfers, grievance

settlement, work distribution

 Social decisions – hours of work, welfare measures, questions affecting work rules and conduct
of individual worker’s safety, health, sanitation and noise control.

Participation basically means sharing the decision-making power with the lower ranks of the
organization in an appropriate manner.

DEFINITIONS

“WPM is the participation resulting from the practices which increase the scope for
employees’ share of influence in decision-making at different tiers of organizational
hierarchy with concomitant (related) assumption of responsibility.”
- INTERNATIONAL INSTITUTE OF LABOUR
STUDIES

“The organization of any factory or other business institution into a little democratic state
with the representative government which shall have both the legislative and executive phases
- JOHN LEITCH

“ Workers’ participation, may broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of information,

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consultations, decisions and negotiations, to more institutionalized forms such as the presence of
workers’ member on management or supervisory boards or even management by workers
themselves (as practiced in Yugoslavia.”
- ILO

The main implications of workers’ participation in management as summarized by ILO:

• Workers have ideas which can be useful;
• Workers may work more intelligently if they are informed about the reasons for and the
intention of decisions that are taken in a participative atmosphere.

OBJECTIVES

According to Gosep, workers’ participation may be viewed as:

 An instrument for increasing the efficiency of enterprises and establishing harmonious
relations.

 A device for developing social education for promoting solidarity among workers and for
tapping human talents.

 A means for achieving industrial peace and harmony which leads to higher productivity
and increased production

 A humanitarian act, elevating the status of a worker in the society

 An ideological way of developing self-management and promoting industrial democracy

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OTHER OBJECTIVES OF WPM INCLUDES:-

 To improve the quality of working life (QWL) by allowing the workers greater influence
and involvement in work and satisfaction obtained from work.

 To secure the mutual co-operation of employees and employers in achieving industrial

peace; greater efficiency and productivity in the interest of the enterprise, the workers,
the consumers and the nation.

IMPORTANCE OF WORKER PARTICIPATION IN

MANAGEMENT

 Higher Productivity: -The increased productivity is possible only when

there exists fullest co-operation between labour and management. It has been
found that poor labour management relations do not encourage the workers to
contribute anything more than the minimum desirable to retain their jobs. Thus
participation of workers in management is essential to increase industrial
productivity.

 Greater Commitment:- An important prerequisite for forging greater

individual commitment is the individual’s involvement and opportunity to express
himself. Participation allows individuals to express themselves at the work place
rather than being absorbed into a complex system of rules, procedures and
systems. If an individual knows that he can express his opinion and ideas, a
personal sense of individual knows that he can express his opinion and ideas, a
personal sense of gratification and involvement takes place within him. I am sure
you will agree that participation increases the level of commitment and the
employees start relating to the organization.

 Reduced Industrial Unrest:-Industrial conflict is a struggle between two

organized groups, which are motivated by the belief that their respective interests
are endangered by the self-interested behaviour of the other. Participation cuts at
the very root of industrial conflict. It tries to remove or at least minimize the
diverse and conflicting interests between the parties, by substituting it with

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cooperation, homogeneity and common interests. Both sides are integrated and
decision arrived at are mutual rather than individual.

 Improved Decisions:-I am sure that you will agree that communication is

never a one way process, Also note that it is seldom, if ever, possible for
managers to have knowledge of all alternatives and all consequences related to the
decisions which they must make. Because of the existence of barriers to the
upward flow of information in most enterprises, much valuable information
possessed by subordinates never reaches their managers. Participation tends to
break down the barriers, and makes the information available to managers. To the
extent such information alters the decisions, the quality of decisions is improved.

 Human Resource Development:- Participation provides education to

workers in the management of industry. It fosters initiative and creativity among
them. It develops a sense of responsibility. Informal leaders get an opportunity to
reinforce their position and status by playing an active role in decision-making
and by inducing the members of the group to abide by them.

 Reduced Resistance to Change:- Last but not the least, it should be

noted that changes are arbitrarily introduced from above without explanation.
Subordinates tend to feel insecure and take counter measures aimed at sabotage of
changes. But when they have participated in the decision making process, they
have had an opportunity to be heard. They know what to expect and why. Their
resistance to change is reduced

ESSENTIAL CONDITION FOR WPM

The success of workers portion in management depends upon the following

conditions:-
• The attitude and outlook of the parties should be enlightened and impartial so that a free
and frank exchange of thoughts and opinions could be possible. Where a right kind of
attitude exists and proper atmosphere prevails the process of participation is greatly
stimulated.

• Both parties should have a genuine faith in the system and in each other and be willing to
work together. The management must give the participating institution its right place in
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the managerial organization of the undertaking and implementing the policies of the
undertaking. The labor, on the other hand, must also whole heartedly co-operate with the
management through its trade unions. The foremen and supervisory cadre must also lend
their full support so that the accepted policies could be implemented without any
resentment on either side.

• Participation should be real. The issues related to increase in production and productivity,
evaluation of costs, development of personnel, and expansion of markets should also be
brought under the jurisdiction of the participating bodies. These bodies should meet
frequently and their decisions should be timely implemented and strictly adhered to.
Further,
o Participation must work as complementary body to help collective bargaining,
which creates conditions of work and also creates legal relations.
o There should be a strong trade union, which has learnt the virtues of unit and self-
reliance so that they may effectively take part in collective bargaining or
participation.
o A peaceful atmosphere should be there wherein there are no strikes and lock-outs,
for their presence ruins the employees, harms the interest of the society, and puts the
employees to financial losses.
o Authority should be centralized through democratic management process. The
participation should be at the two or at the most three levels.
o Programs for training and education should be developed comprehensively. For
this purpose, Labor is to be given education not to the head alone, not to the heart
alone, not to the hands alone, but it is dedicated to the three; to make the workers
think, feel and act. Labor is to be educated to enable him to think clearly, rationally
and logically; to enable him to feel deeply and emotionally; and to enable him to act
in a responsible way.

SCOPE AND WAYS OF PARTICIPATION

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 One view is that workers or the trade unions should, as equal partners, sit with the
management and make joint managerial decisions.

 The other view is that workers should only be given an opportunity, through their
representatives, to influence managerial decisions at various levels.

The participation of workers can take place by one or all the methods listed
below:-
• Board level participation
• Ownership participation
• Complete control
• Staff or work councils
• Joint councils and committees
• Collective Bargaining
• Job enlargement and enrichment
• Suggestion schemes
• Quality circles
• Empowered teams
• TQM
• Financial participation

PARTICIPATION AT THE BOARD LEVEL:-

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• This would be the highest form of industrial democracy.

• The workers’ representative on the Board can play a useful role in safeguarding the
interests of workers.
• He or she can serve as a guide and a control element
• He or she can prevail upon top management not to take measures that would be
unpopular with the employees.
• He or she can guide the Board members on matters of investment in employee benefit
schemes like housing, and so forth.
• The Government of¬ India took the initiative and appointed workers’ representatives on
the Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized
banks. The Tatas, DCM, and a few others have adopted this practice.

PROBLEMS ASSOCIATED WITH THIS METHOD:-

• Focus of workers’ representatives is different from the focus of the remaining members
of the Board.
• Communication and subsequently relations between the workers’ representative and the
workers suffers after the former assumes directorship.
• He or she tends to become alienated from the workers.
• As a result, he or she may be less effective with the other members of the Board in
dealing with employee matters.
• Because of the differences in the cultural and educational backgrounds, and differences in
behaviour and manners, such an employee’s representative may feel inferior to the other
members, and he or she may feel suffocated. Hence, his or her role as a director may not
be satisfying for either the workers or the management.
• Such representatives of workers’ on the Board, places them in a minority. And the
decisions of the Board are arrived at on the basis of the majority vote.

PARTICIPATION THROUGH OWNERSHIP:-

• This involves making the workers’ shareholders of the company by inducing them to buy
equity shares.

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• In many cases, advances and financial assistance in the form of easy repayment options
are extended to enable employees to buy equity shares.
• Examples of this method are available in the manufacturing as well as the service sector.

ADVANTAGE:-
• Makes the workers committed to the job and to the organization.

DRAWBACK:-
• Effect on participation is limited because ownership and management are two different
things.

PARTICIPATION THROUGH COMPLETE CONTROL:-

• Workers acquire complete control of the management through elected boards.

• The system of self-management in Yugoslavia is based on this concept.
• Self-management gives complete control to workers to manage directly all aspects of industries
through their representatives.

ADVANTAGES:-

• Ensures identification of the workers with their organization.

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• Industrial disputes disappear when workers develop loyalty to the organization.

• Trade unions welcome this type of participation.

DRAWBACK:-

• Complete control by workers is not an answer to the problem of participation because the
workers do not evince interest in management decisions

PARTICIPATION THROUGH STAFF AND WORKS

COUNCILS:-

• Staff councils or works councils are bodies on which the representation is entirely of the
employees.
• There may be one council for the entire organization or a hierarchy of councils. The
employees of the respective sections elect the members of the councils. Such councils
play a varied role.
• Their role ranges from seeking information on the management’s intentions to a full
share in decision-making.

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• Such councils have not enjoyed too much of success because trade union leaders fear the
erosion of their power and prestige if such workers’ bodies were to prevail.

PARTICIPATION THROUGH JOINT COUNCILS AND

COMMITTEES:-
• Joint councils are bodies comprising representatives of employers and employees.
• This method sees a very loose form of participation, as these councils are mostly
consultative bodies.

• Work committees are a legal requirement in industrial establishments employing 100 or

more workers.

• Such committees discuss a wide range of topics connected to labour welfare.

• Examples of such committees are welfare committee, safety committee, etc.
• Such committees have not proven to be too effective in promoting industrial democracy,
increasing productivity and reducing labour unrest

PARTICIPATION THROUGH COLLECTIVE BARGAINING:-

• Through the process of Collective Bargaining, management and workers may reach
collective agreement regarding rules for the formulation and termination of the contract
of employment, as well as conditions of service in an establishment.

• Even though these agreements are not legally binding, they do have some force.
For Collective Bargaining to work, the workers’ and the employers’ representatives need
to bargain in the right spirit.

• But in practice, while bargaining, each party tries to take advantage of the other.
This process of Collective Bargaining cannot be called WPM in its strongest sense as in
reality; Collective Bargaining is based on the crude concept of exercising power for the
benefit of one party.

• WPM, on the other hand, brings both the parties together and develops appropriate
mutual understanding and brings about a mature responsible relationship

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PARTICIPATION THROUGH JOB ENLARGEMENT AND JOB

ENRICHMENT:-

• Excessive job specialization that is seen as a byproduct of mass production in industries,

leads to boredom and associated problems in employees.

• Two methods of job designing job enlargement and job enrichment are seen as methods
of addressing the problems.

• Job enlargement means expanding the job content – adding task elements horizontally.
• Job enrichment means adding `motivators’ to the job to make it more rewarding.

• This is WPM in that it offers freedom and scope to the workers to use their judgment.
But this form of participation is very basic as it provides only limited freedom to a
worker concerning the method of performing his/her job.

• The worker has no say in other vital issues of concern to him – issues such as job and
income security, welfare schemes and other policy decisions.

PARTICIPATION THROUGH SUGGESTION SCHEMES:-

• Employees’ views are invited and reward is given for the best suggestion.

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• With this scheme, the employees’ interest in the problems of the organization is aroused
and maintained. Progressive managements increasingly use the suggestion schemes.
Suggestions can come from various levels.

• The ideas could range from changes in inspection procedures to design changes, process
simplification, paper-work reduction and the like.

• Out of various suggestions, those accepted could provide marginal to substantial benefits
to the company. The rewards given to the employees are in line with the¬ benefits
derived from the suggestions.

PARTICIPATION THROUGH QUALITY CIRCLES:-

• Concept originated in Japan in the early 1960s and has now spread all over the world.
• A Quality Circle consists of seven to ten people from the same work area who meet
regularly to define, analyze, and solve quality and related problems in their area. Training
in problem-solving techniques is provided to the members.

• Quality Circles are said to provide quick, concrete, and impressive¬ results when
correctly implemented.

ADVANTAGES:-
• Employees become involved in decision-making, acquire communication and analytical
skills and improve efficiency of the work place.

• Organization gets to enjoy higher savings-to-cost ratios.

• Chances of QC members to get promotions are enhanced.

THE INDIAN SCENARIO:-

• Tried by BHEL, Mahindra and Mahindra, Godrej and Boyce among others.

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• Experienced mixed results:-

Mahindra & Mahindra (jeep division) with 76 QCs has experienced favourable results.
• Technical problems got solved.
• Workers got to get out of their daily routine and do something challenging.

• Trade unions look at it as:-

• A way of overburdening workers, and
• An attempt to undermine their role. These circles require a lot of time and commitment
on the part of members for regular meetings, analysis, brainstorming, etc. Most Quality
Circles have a definite life cycle one to three years. Few circles survive beyond this limit
either because they lose steam or they face simple problems.

• Quality Circle can be an¬ excellent bridge between participative and non-participative
approaches. For QCs to succeed in the long run, the management needs to show its
commitment by implementing some of the suggestions of the groups and providing
feedback on the disposition of all suggestions.

EMPOWERED TEAMS:-

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• Empowerment occurs when authority and responsibility are passed on to the employees
who then experience a sense of ownership and control over their jobs.

• Employees may feel more responsible, may take initiative in their¬ work, may get more
work done, and may enjoy the work more.

• For empowerment¬ to occur, the following approach needs to be followed as compared

to the traditional approach:

Traditional
Element Empowered Teams
Organization

Layered, individual Flat, team

Organizational
structure Narrow, single task Whole process, multiple
tasks
Job design Direct, control
Coach, facilitate
Management role Top-down
Shared with the team
Leadership Controlled, limited
Open, shared
Information flow Individual, seniority
based Team-based, skill-based
Rewards
Managers plan, control, Teams plan, control, and
Job process
improve improve

FEATURES OF EMPOWERED OR SELF-DIRECTED

TEAMS:-
• Empowered to share various management and leadership functions.

• Plan, control and improve their work.

• Often create their schedules and review their performance as a group.

• May prepare their own budgets and co-ordinate their work with other departments.

• Usually order materials, keep inventories and deal with suppliers.

• Frequently responsible for acquiring any new training they might need.

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• May hire their own replacement to assume responsibility for the quality of their products
or services.

• Titan, Reliance, ABB, GE Plastics (India), Wipro Corporation and Wipro InfoTech are
empowering employees both frontline as well as production staff, and are enjoying
positive results.

TOTAL QUALITY MANAGEMENT:

TQM refers to the deep commitment, almost obsession, of an organization to quality.
Every step in company’s processes is subjected to intense and regular scrutiny for ways to
improve it.

Some traditional beliefs are discarded.

• High quality costs more.
• Quality can be improved by inspection.
• Defects cannot be completely eliminated.
• Quality in the job of the QC personnel.

New principles of TQM are:

• Meet the customer’s requirement on time, the first time, and 100% of the time.
• Strive to do error-free work.
• Manage by prevention, not correction.
• Measure the cost of quality.
• TQM is called participative because it is a formal programme involving every employee
in the organization; making each one responsible for improving quality everyday.

FINANCIAL PARTICIPATION:
This method involves less consultations or even joint decisions. Performance of the organization
is linked to the performance of the employee. The logic behind this is that if an employee has a
financial stake in the organization, he/she is likely to be more positively motivated and involved.

Some schemes of financial participation:

• Profit-linked pay

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• Profit sharing and Employees’ Stock Option schemes.

• Pension-fund participation.

PRE-REQUISITES FOR SUCCESSFUL

PARTICIPATION

 The overall climate in the organisation should be favourable to workers’

participation. There should be an attitude of mutual co-operation, confidence, and
respect for each other. Management, in particular, should be genuinely receptive to
the labour’s ideas so that the latter can perceive that their ideas are useful.
 There must be sufficient time to participate before action is required; because
participation in emergent situations is hardly advisable.
 The subject of participation must be relevant to the enterprise; it must concern
something in which both the parties are interested, otherwise the parties are likely to
become indifferent to the process of participation.
 The workers’ representatives should have the ability such as intelligence and
knowledge, to participate. It is not appropriate to ask workers to participate in
technical aspects of the machinery; but they can participate successfully in problems
relating to their work. The contributions made by the workers should be worthwhile
and should benefit the workers in the long run. It should be in the interest of the
management as well. Now maintaining that balance is not that easy but that is what
experience is all about.
 There must be effective system of communication. Both labour’s representatives and
management’s representatives must be able to understand each other and express
themselves without any inhibitions. The whole idea after all is to be able to speak out
one’s mind and listen to the counterpart’s point of view.
 Participation should not adversely affect the status or authority of the participants.
Managers will not participate, if their authority is threatened. Workers will hesitate in
participating if they think that their status is being adversely affected. In fact for
worker’s participation to be effective, both the management and the labour should
get rid of their ego problems and share their ideas. I am sure that you will agree that
no get rid of their ego problem that you will agree that relationship can continue for
long if there are ego clashes. Both the parties should make efforts to come closer
rather than moving away.

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 The financial cost of participation should always be lesser than the benefits-both
economic and non-economic-of participation. We all can understand the economic
aspect but as far as the non-economic part is concerned, it will depend on the
organisations.
 Participation should be within the framework of overall policy of the enterprise in
question .Every decision has to be in line with the Vision and Mission statements of
the organisation.

LIMITATIONS OF PARTICIPATION:

Technology and organizations today are so complex that specialized work-roles are required.
• This means employees will not be able to participate effectively in matters beyond their
particular environment. Everybody need not want participation.
• The role of trade unions in promoting participative management has been far from
satisfactory.
• Employers are unwilling to share power with the workers’ representatives. Managers
consider participative management a fraud.

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