1. Workers Participation in
Management

2. 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 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

3. Worker’s participation
arrangements resulting into the creation of various participative
forums to associate workers with management
v/s
Participative management
Manager’s specific style in which he interacts with his people,
leadership pattern

4. Objectives of Workers participation in
management
1.Aware of Democratic right to
1. Economic influence the managerial
objective decisions
2. Social  2. Raise worker’ level of
motivation and commitment
Objective (own decisions)
3.  3.Cross-fertilisation and speedy
Psychological communication of ideas
Objective 4. Avoid conflict and Foster better
co-operation between labour and
management.

5. Importance of Workers’ Participation in
Management
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

6. 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

7. Workers Participation in Management
in India
Indirect Representative : introduced by govt through legal
provisions or notifications.
E.g Works Committee,Joint Management Council
Worker’s director etc.
Direct Participation : opportunity for each and every worker to
participate in management through variety of mechanisms like suggestion
schemes, small group activity ,quality circles etc.

9. 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 or any day on
preceding 12 months.
 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

10. List of items WC can deal with
Conditions of work such as ventilation, lighting, temperature
and sanitation
Amenities such as drinking water, canteen, dining ,crèches,
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.

11. 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

12. Items excluded
Wages and allowances
Bonus
Profit sharing
Work load fixation
Retrenchment or layoff
Housing services
Retirement benefits, PF , gratuity etc.

13. 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

14. 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

15. AN UNDERTAKING MUST MEET THE FOLLOWING
REQUIREMENTS FOR SETTING UP JMC’s
It must have 500 or more employees.
It should have a fair record of industrial relations.
It should have a strong and well organised trade
union.
Willingness of employers, workers and trade
unions
.

16. FEATURES OR FUNCTIONS of JMC
1. Consultative Functions -council consulted by
management on :
Administration of standing orders
New methods of production
Retrenchment
Closure, reduction in or cessation of operation

17. 2.Information –receiving 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.

18. 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

19. Reasons for unsatisfactory working or
partial success
Trade union fear of loosing power
Weak representatives
Employers who already have WC and TU find it superflous

20. Workers’ Directors(1970)
Workers’ representative on the board of directors of public
sector enterprise and nationalized bank
Worker director is elected by the most representative TU

21. Reasons for failure
Wd’s were ill equipped to understand the intricacies of
board level matters
Secrets might be leaked out
Union opposition

22. Worker Participation scheme(1975)
SHOP COUNCILS
For each dept or shop floor, establishment having more than
500 workmen
Each council consists of equal number of representatives of
employers and workers.

23. 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

24. 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

25. 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

26. Direct participation
Two way communication: more imp in knowledge
workers
Suggestion schemes
5S concept : Japan for TQM-house keeping
practices
 Shitseke: discipline- maintain and review standards
 Seiton : orderliness –set in order
 Seiketsu: standardization of work practices
 Seiri: clearing (sorting) – keep only essential items rest discarded
 Seiso: sweeping/washing,cleanliness of workplace

31. PDCA concept- to improve organizational effectiveness
Plan-set target
Do-work to meet target
Check : target achieved or not
Act –to remove difficulties or modify( to improve
organizational effectiveness)

32.  Quality of work life (QWL): joint programmes of cooperation
or ‘working together’ on the shop floor to improve quality of
work life
-refers to favourableness or unfavourableness of a job environment
for employees in the organization
 E.G 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.