WORKERS PARTICIPATION IN

MANAGEMENT
18 August2017
Introduction
 Since the beginning of industrialization there has been constant debate
on the status of workers in industrial society

 Earlier in the feudal system before the industrial revolution, the units
were used to be small and there used to be a joint decision making
through consultation between the owner and worker

 Social thinkers like Comte and Omen had advocated about the
participation of workers in management for achieving social and
distributive justice.
 Karl Marx advocated complete control of enterprise by workers.

 Webb and Cole propagated that participation of worker in management

Introduction
 They believed that if the workers are also given opportunity to
participate in the management process, there would be positive gains
for the enterprise through higher productivity and efficiency

 It was during the First World War that a need to study the relationship
between employer and employee was felt, which has adversely
affected the industrial situation.

 The government appointed a committee headed by Lord Whitley

 He suggested that factories and other workplaces should form
works committees comprising equal representatives from both
sides.

 Whitley’s suggestions were implemented by the government and a

works committee was set up in all the factories.
Workers Participation
 Participation is a psychological concept which
essentially denotes

 Power equalization

 Democratic use of power

 Sharing / Partaking of power

 Forms of Participation

Participation

Operational Financial

Co-
Delegatory Informatory Consultative Ownership Income
determinatory
Sources of Participation

Source

Non-
Legislative
Legislative

Management Negotiation Workforce

Motives of Participation

Motives

Equity Efficiency
WPM Practices
 UNITED KINGDOM

 The history of the workers' participation in the U.K. goes back t o

1920 when a committee, headed by Mr. Witley, was appointed.

 In 1975, the Government established another committee under the

chairmanship of Lord Bullock

 The Bullock Committee report recommend that employees should

be given the right to representation on a unitary board in all
companies employing 2000 or more workers in U.K.
WPM Practices
 GERMANY

 In Germany workers' participation in management was introduced

through "mitbestimnung" which means codetermination
 Employee participation at board level in Germany was first
introduced by the occupation powers of the "Ruhr barons" and
became federal law in those industries by the Act of 1951.
Participation was extended to limited companies with more than
500 employees by another Act in 1952, and has recently after a
long debate been further amended by a new Act of 1976. In all
cases, employee participation at board level applies to the
supervisory board within a two-tier structure.
WPM Practices
 YUGOSLAVIA

 Yugoslavia provides the most classic example of workers'

participation in management.
 The self-management in industrial undertakings was formally
instituted in February 1922, but the basic law of introducing
workers participation in management was passed in 1950.
 The most important institutions under the Yugoslavian workers'
participation are workers' council, Management Board, Local
peoples' committee and Trade unions.

 POLAND

 The “Employee Councils" and "Works Committee" were set up

spontaneously in many parts of Poland, The workers' council was
granted full legal status by a law passed in November, 1956
WPM in India
 Study and advocacy for its implementation in industrial establishment
has relatively long history in India

 Importance of worker has been felt right since first plan of independent
India

 A closer association of employees with management was in practice at

TISCO since 1919
WPM in India
 Royal Commission on Labour in India in 1929 headed by Lord
Whitley

 Recommended that
 Management must consult labour on issue related to production.

 Greater involvement and commitment of labour in promoting

industrial production.
 He suggested formation of works committees comprising equal
representatives from both sides.
 This committee would suggest mean to increase productivity
through workers’ participation
WPM in India
 Aimed at institutionalization of the times or concept of industrial
democracy

 The first form of participation can be seen in the Works Committee

under the Industrial Dispute Act, 1947.

 The Section 3 of this Act states that, central and state governments
have the right to declare the formation of works committee in
industrial establishments that employs 100 or more workers.
WPM in India
 During the 1950s the discourse on WPM was done between unions and
the state but the WCs were not fully geared to workers’ participation.

 The Industrial Policy Resolution of 1956 had stressed on the need for
labour being a partner in development. It also recommends that labour
should participate in the process and joint consultation should be held
by management and workers to deal with managerial problems

 The scheme of WPM in India has following forms:

 Works committees,

 joint management councils and

 workers-director
Rationale
 The issue of WPM is important for involving workers in the
production process.

 It empower them to make independent decisions and be more

confident about their own capabilities

 The WPMs in India were not much inclusive as their counterparts in

the Other countries esp. European countries

 Despite of Statutory regulations and schemes the role of workers

participation in management is negligible in India.

 No significant study has been done on WPM in India.

Objectives
 To understand role of WPM practices followed in large engineering
Industries.

 Study the impact of WPM practices on the productivity.

 To study the WPM practices:

 Shop Councils,

 Works Committee,

 Joint Management Council,

 Unit Council,

 Plant Council,

 Apex Joint Council.

Objectives
 To study WPM and its impact on

 Achieving production targets,

 Improving working techniques,
 Reducing absenteeism,
 Maintaining discipline,
 Improving physical working condition,
 Suggesting welfare measures,
 Communication,
 Innovation ,
 Cost reduction
 THANK YOU