WORKERS PARTICIPATION IN MANAGEMENT (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 management decisions.

MEANING
Workers participation in management means giving scope for workers to influence the managerial decision-making process at different levels by various forms in the organization. The principal forms of workers participation are information sharing, joint consultation, suggestion schemes, etc. Redistribution of power between management and workers in the direction of industrial democracy

Workers participation in Management

Within the last four decades in the realm of HRM, the technique of the workers participation in management has been regarded as a powerful behavioral tool for managing the industrial relations system. For management, It is joint consultations prior to decision making The management experts and executives look upon it as a tool for improving the overall performance of an enterprise. For them, it means that workers are given an opportunity to take part in those decisions which affect their working conditions, their very jobs and this participation increases productivity and efficiency.

Workers participation in Management

For laborers, it is just like co-decision or codetermination. The concept of workers participation in management crystallizes the concept of industrial democracy, and indicates an attempt on the part of an employer to build his employees into a team which works towards the realization of a common objective. Participation : taking part in sharing of power and status between the managers and the workers. WPM seeks to bridge this gap authorizing workers to take part in the managerial process. WPM gives scope for workers to influence the managerial at different levels by various forms in the organization.

EVOLUTION OF CONCEPT
The employers realization of the need for workers participation in management was considerably influenced b the following factors: The increased use of technology in the industry has necessitated the growing co-operation of workers because of the complex operation of the production.

The changed view that employees are no longer servant but are equal partners with their employers in their efforts to attain the goals of the enterprise.

EVOLUTION OF CONCEPT
The growth of the Trade Unions which safe guard the interest of the workmen and protect them against possible exploitation by their employers
The growing interest of the government in the development of industries and the welfare of workers. The need for increased and uninterrupted production which can be achieved only when there is a contented labor class.

IMPORTANCE OF WPM
1. Mutual Understanding 2. Higher Productivity 3. Industrial Harmony 4. Industrial Democracy (right of self expression and

opportunity to communicate views on policies,

worker as responsible partner in decision making)

5. Less Resistance to change

6. Creativity and Innovation

Forms/level/degree of Participation
Communication : to give and get info (sharing )

Consultation : exchange opinions and views before decision taken

Co-determination : joint decision making Self management : enjoying complete authority right from decision making to execution

List of items WPM 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.

List of items WC can deal with

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

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

GAINS
The participation enhances employees ability to influence decision making at different tiers of the Organizational hierarchy with concomitant (GOING TOGETHER) assumption of responsibility.

The participation has to be at different levels of management: 1. At the shop floor level, 2. At the departmental level, 3. At the board level.

Gains
The participation incorporates the willing acceptance of responsibilities by the body of workers. As they become a party to decision making, they have to commit themselves to the implementation of decisions made.
The participation is conducted through the mechanism of forum and practices which provide for the association of workers representatives, The broad goal of participation is to change basically the organizational aspect of production and transfer the management function entirely to the workers so that they can experience intricacies of auto management.

METHODS OF JOB DESIGNING

JOB DESIGNING

JOB ENLARGEMENT

JOB ENRICHMENT

SACHAR COMMITTEE
Sachar Committee on workers participation: Set up by the Government of India under the chairmanship of Rajinder Sachar in 1977. Main Recommendations: Regarding Representation of workers on Board of Directors: Participation shall be limited to companies which employ 1000 or more. The participation at the board level should be introduced if at least 51% of the workers vote in favor of participation. The worker Director will be elected by all the workers. The worker Director must be from amongst the workers employed by the company and not an outsider.

SACHAR COMMITTEE
Sachar Committee on workers participation: Regarding Workers Participation in Share Capital: In all future issues of shares by companies, a portion of new shares, say about 10%to 15%, should be reserved exclusively for workers called workers shares. Employees will be provided a loan up to 12 months salary or wages not exceeding Rs. 12,000 for the purchase of the shares of the company.

Varma Committee on Workers Participation in Industry:

The Janata Government set up a committee in September 1977 under the chairmanship of Ravindra Varma, the then Union Minister of Labor. Main Recommendations: A three tier system of participation, viz., at the shop floor, plant and board levels should be adopted. Legislation on workers participation should be introduced. The representative for the participative forms should be elected by secret ballot. The issue of equity participation was recommended as optional.

Comprehensive Scheme for WPM (1983):

Main Features:
The scheme will not have any legislative backing to begin with. It would cover all PSU. It will operate both at the Shop Floor and Plant Levels. The employees and employers shall have equal representation on all the participative forums. The function of the participative forum would be as laid down in the scheme and can be modified with the consent of both the parties.

Second Meeting of Labor Ministers on WPM (1985):

Salient Features: The scheme shall have legislative backing. It shall cover industrial establishments employing 500 or more persons. The Scheme shall work at three levels i.e. shop level, the plant level and the board level. Only employees of the establishment shall be eligible for representation in the participative forums. The functions of various participative forums shall be laid down in the framework of the scheme. All the decisions of the shop and plant councils shall be arrived at by the consensus.

PARTICIPATIVE FORMS PREVALENT IN INDIA:

1. Works Committees. 2. Joint Management Councils.

3. Joint Councils.
4. Unit Councils.

5. Plant Councils.
6. Shop Councils

1. 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.

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 are attended to.

Reasons for failure of WC

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

2. 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

2. Joint Management Council (1958)

AN UNDERTAKING MUST MEET THE REQUIREMENTS FOR SETTING UP JMCs FOLLOWING

It must have 500 or more employees. It should have a fair record of industrial relations. It should have a strong and well organized trade union. Willingness of employers, workers and trade unions

FEATURES OR FUNCTIONS of JMC

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

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

Shop Council
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

4. 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

JOINT COUNCILS
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

UNIT COUNCILS
It consists of representatives of workers and management of the organization employing 100 or more workers may be formed in each unit to discuss day to day problems and find solutions. Every unit shall consist of an equal number of representatives of management and workers All decisions of an unit council shall be implemented within the month

PLANT COUNCIL
There shall be one plant council for the whole unit
Each plant council should consist of not less than six and not more than 18 members Should meet once in a quarter Every decision of the plant council shall be on the basis of consensus and not by voting and shall be binding on both the employees and the employer

WPM IN INDIA
1947 - ID Act Works Committee

1958 - Ind. Policy

1970 - Nationalization 1975 - Article 43 A 1985 - ESOP

Joint Mgmt. Committees

Director on Banks WPM Workers Share in Equity

LEVELS OF PARTICIPATION
INFOMATIVE PARTICIPATION
CONSULTATIVE PARTICIPATION

ASSOCIATIVE PARTICIPATION
ADMINISTRATIVE PARTICIPATION DECISIVE PARTICIPATION

INFORMATIVE PARTICIPATION
Refers to sharing of information with workers regarding: Economic position, State of market, Production & sales programmes, Work methods, Balance sheet..etc. But here workers have no right to analyze or investigate the information.

CONSULTATIVE PARTICIPATION
Workers are given the chance to express their views on various issues concerning work, workplace, working condition, market standing, financial status etc. But joint council works as advisory body only. Management may or may not accept the suggestion.

ADMINISTRATIVE PARTICIPATION
Can be said BOARD LEVEL PARTICIPATION The workers representative on the Board can play a useful role in : Safeguarding the interests of workers Can prevail upon top management not to take measures that would be unpopular with the employee Can guide the Board members on matters of investment in employee benefit schemes like housing, and so forth

 DECISIVE PARTICIPATION
This is the form of participation where decisions are taken jointly on matters related to production, safety, welfare etc.

ASSOCIATIVE PARTICIPATION
Council is not purely advisory. The management is under moral obligation to accept and implement the decision of the council.

PARTICIPATIVE SCHEMES IN INDUSTRIALLY ADVANCED COUNTRIES

UK
The whitley councils have been functioning since 1917. The addition of joint consultation machinery was made in 1947 These are single committees with sub committees in small forums, while shop committees function in large factories. At the national level, joint consultation is the rule. The management nominates its representatives, while the representatives of workers are elected by secret ballot. The free and frank discussions generally take place on such subjects as safety, health, welfare, training, discipline among employees improving production etc.

PARTICIPATIVE SCHEMES IN INDUSTRIALLY ADVANCED COUNTRIES FRANCE

The schemes was started in 1945 when works committees and joint consultation started under legal sanctions prescribing that all non state organizations must have works committees if 50 or more workers are employed and workers delegates if 10 or more employees are employed.

These bodies perform both advisory and administrative functions and cooperate with the management by offering valuable suggestions on increasing production, fixing prices, welfare schemes, housing facilities etc.

 GERMANY The scheme is known as co-determination which may be economic, personnel and social co- determination. The economic co-determination relates to management policy. The personnel co-determination relates to policy including recruitment, training, transfer etc. The social co-determination deals working hours, vacations , sanitations etc. In all industries employing up to 500 employees, one third of the members of the supervisory boards must be elected by the employees qualified to vote. The work councils consist exclusively workers representatives which make recommendations to the employer for benefitting the employees, hear their grievances, promote employment of disabled person, combat accidents and dangers to health etc.

PARTICIPATIVE SCHEMES IN INDUSTRIALLY ADVANCED COUNTRIES