Workers Participation in Management

Workers Participation in Management
Presented by: Muhanned Mahamood
M.S.Ramaiah School of Advanced Studies
AIM
To study and understand the benefits of Workers Participation in Management
OBJECTIVES
To conduct the literature survey on Workers Participation in Management
To understand the concept of Workers Participation in

Management To analyze the study of Workers Participation in Management
Workers Participation in Management

Workers participation in management means giving scope for workers to influence the managerial decision-making process at
different levels by various forms in the organisation.

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.
Cont
International Institute of Labour Studies: WPM is the participation resulting from the practices which increase the scope for employees share of influence in decisionmaking at different tiers of organizational hierarch with
concomitant assumption of responsibility.
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.
Importance of WPM
Unique motivational power and a great psychological value. Peace and harmony between workers and management.
Workers get to see how their actions would contribute to the overall
growth of the company. They tend to view the decisions as `their own and are more enthusiastic in their implementation. Participation makes them more responsible. They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas.
Scope and ways of participation

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.
In practice, the participation of workers can take place by one or all

the methods listed below: Board level participation, Ownership participation, Complete contro, Staff or work councils, Joint councils and committees, Collective Bargaining, Job enlargement and enrichment, etc
Participation at board level

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 prevail upon top management not to take measures
that would be unpopular with the employees.

The Government of India took the initiative and appointed workers representatives on the Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized banks.
Cont
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. Because of the differences in the cultural and educational backgrounds, and differences in behaviour and manners, such an
employees 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.
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Participation through ownership

This involves making the workers shareholders of the company
by inducing them to buy equity shares. 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.
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Participation through staff & works council

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 managements intentions to a full share of

decision making.
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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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Conclusion
In Modern Management practices, Workers of a company are also considered Partners of the firm. Partner in the sense, they
are partners in the success of the organization. The success of

an organization though partly depends upon the Management, participation of the workers in the management heavily enhance the chances of success of the business.
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Reference
http://www.buzzle.com/articles/ethics-in-the-workplace.html http://managementhelp.org/blogs/businessethics/2010/11/18/ethics-management-programs-an-overview/ http://www.ato.gov.au/businesses/content.aspx?doc=/content/3308 9.htm http://www.makemoneyfreemoney.com/workers-participation-inmanagement.html http://www.andrewbibby.com/telework/workers-participation-inmanagement.html http://www.murlu.com/workers-participation-in-management/ http://www.bizine.com/advantag.htm http://www.homebasedwork.com/advantages.shtml
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THANK YOU
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Workers Participation in Management

Presented by: Muhanned Mahamood

M.S.Ramaiah School of Advanced Studies

To study and understand the benefits of Workers Participation in Management

M.S.Ramaiah School of Advanced Studies

To understand the concept of Workers Participation in

M.S.Ramaiah School of Advanced Studies