of 32
8/2/2019 ir notes 2011 01
1/32
WORKERSPARTICIPATION IN
MANAGEMENT
8/2/2019 ir notes 2011 01
2/32
Meaning of WPM
WPM is a system of communication andconsultation, either formal or informal, bywhich employees of an organization arekept informed about the affairs of an
undertaking and through which theyexpress their opinion and contribute tomgt decisions.
8/2/2019 ir notes 2011 01
3/32
Objectives of WPM
Increasing productivity for the generalbenefit of the enterprise, the employeesand the community;
Giving employees a better understandingof their role in the working of the industry& of the production process; and
Satisfying the workers urge for self-expression, thus leading to industrialpeace, better relations and increased co-operation.
8/2/2019 ir notes 2011 01
4/32
Forms of WPM
Informative & associative
participation Consultative participation
Administrative participation
Decision participation
8/2/2019 ir notes 2011 01
5/32
Participative forums in India
Works committees;
Joint mgt. Councils;
Joint councils; Unit councils;
Plant councils;
Shop councils;
Workers representative on the board ofmgt; and
8/2/2019 ir notes 2011 01
6/32
Conditions necessary for effectiveworking of the scheme
Congenial work environment
Well defined roles
Faith in the efficacy of the scheme Wide publicity
Free flow of information throughout theenterprise
Should be based on mutual trust Decisions taken by different participatory
forums must be sincerely carried out inthe stipulated time
8/2/2019 ir notes 2011 01
7/32
Reasons for failure of WPM
Ideological differences between the employerand the employees regarding the degree ofparticipation.
Failure to imbibe the spirit of participation by theparties
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 ofthe participative bodies
8/2/2019 ir notes 2011 01
8/32
Works Committee (1947) The industrial disputes act, 1947 provides for the setting up of
works committee consisting of representatives of management andworkers
Establishment employing 100 or more workmen or any day onpreceding 12 months.
It meets frequently for discussion on common problems of theworkers and the management.
After discussion, joint decisions are taken
problems of day to day working
8/2/2019 ir notes 2011 01
9/32
List of items WC can dealwith
Conditions of work such as ventilation, lighting,temperature and sanitation
Amenities such as drinking water, canteen,dining ,crches, rest rooms, medical and healthrooms services
Safety and accident prevention, occupational
diseases and protective equipment.
Adjustment of festivals and national holidays. Administration of welfare funds.
8/2/2019 ir notes 2011 01
10/32
Educational and recreational such aslibraries, reading rooms, cinema-
shows, sports, games, communitywelfare and celebrations, games,
Implementation and review ofdecisions arrived at meeting ofworks committees
8/2/2019 ir notes 2011 01
11/32
Items excluded
Wages and allowances
Bonus
Profit sharing
Work load fixation
Retrenchment or layoff
Housing services
Retirement benefits, PF , gratuityetc.
8/2/2019 ir notes 2011 01
12/32
Reasons for failure of WC
Exclusion of imp items
Lack of competence of
representatives Inter union rivalry
Recommendations are just advisory
in nature No machinery to enforce the
decision
8/2/2019 ir notes 2011 01
13/32
Joint ManagementCouncil(1958)
Consists of equal number ofrepresentatives of management and
employees ,not exceeding 12 in all. Employees Representatives
nominated by recognized trade
union
8/2/2019 ir notes 2011 01
14/32
AN UNDERTAKING MUST MEET THEFOLLOWING REQUIREMENTS FORSETTING UP JMCs
It must have 500 or more employees.
It should have a fair record of industrial relations.
It should have a strong and well organised tradeunion.
Willingness of employers, workers and tradeunions
8/2/2019 ir notes 2011 01
15/32
FEATURES OR FUNCTIONSof JMC
1. Consultative Functions -councilconsulted by management on :
Administration of standing orders New methods of production
Retrenchment
Closure, reduction in or cessation ofoperation
8/2/2019 ir notes 2011 01
16/32
2.Informationreceiving and suggestion making functions:
General economic situation.
The state of market, production and sales programmes.
Organisation and general running of the undertaking. The annual balance sheet and profit and loss account statement and
connected documents with explanations.
Methods of manufacture and work
long term plan for expansion etc.
8/2/2019 ir notes 2011 01
17/32
3.Administrative functions : Welfare measures
Supervision of safety measures Operation of vocational training and
apprenticeship schemes
Preparation of schedules of working hours ,
breaks , holidays Payment of rewards for valuable suggestions
8/2/2019 ir notes 2011 01
18/32
Reasons for unsatisfactoryworking or partial success
Trade union fear of loosing power
Weak representatives
Employers who already have WCand TU find it superfluous
8/2/2019 ir notes 2011 01
19/32
Worker Participationscheme(1975)
SHOP COUNCILS
For each dept or shop floor,
establishment having more than 500workmen
Each council consists of equal
number of representatives ofemployers and workers.
8/2/2019 ir notes 2011 01
20/32
Functions :
Assistance to management in achieving monthly/yearlyproduction targets
Improvement of production-elimination of wastage andoptimum 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
8/2/2019 ir notes 2011 01
21/32
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
8/2/2019 ir notes 2011 01
22/32
Functions: Optimum production
Matters not solved in shop council or havingbearing on another shop/dept
Development of skills of workmen
Awarding of rewards for valuable suggestions
General health, safety and welfare measures forthe unit or the plant
8/2/2019 ir notes 2011 01
23/32
Workers Directors(1970)
Workers representative on theboard of directors of public sector
enterprise and nationalized bank Worker director is elected by the
most representative TU
8/2/2019 ir notes 2011 01
24/32
Reasons for failure
Wds were ill equipped tounderstand the intricacies of board
level matters Secrets might be leaked out
Union opposition
8/2/2019 ir notes 2011 01
25/32
Direct participation
Two way communication: moreimp in knowledge workers
Suggestion schemes 5S concept : Japan for TQM-
house keeping practices
Shitseke: discipline- maintain and reviewstandards
Seiton : orderliness set in order
Seiketsu: standardization of work practices
Seiri: clearing (sorting)
keep only essential
8/2/2019 ir notes 2011 01
26/32
8/2/2019 ir notes 2011 01
27/32
8/2/2019 ir notes 2011 01
28/32
8/2/2019 ir notes 2011 01
29/32
8/2/2019 ir notes 2011 01
30/32
PDCA concept- to improve organizational
effectiveness
Plan-set target
Do-work to meet target
Check : target achieved or not
Actto remove difficulties or modify( to
improve organizational effectiveness)
8/2/2019 ir notes 2011 01
31/32
Quality of work life (QWL): joint programmes ofcooperation or working together on the shop floor toimprove quality of work life
-refers to favourableness or unfavourableness of a jobenvironment for employees in the organization
Adequate and fair compensation
Safe and healthy working conditions Opportunity to use and develop human capacities
Opportunity for career growth
Social integration in work force etc.
8/2/2019 ir notes 2011 01
32/32