Participative Management in India

Topics: Trade union, Management, Labour relations Pages: 6 (1847 words) Published: March 22, 2013
Participative Management in the Indian context
Evolution of participative management in India
Pre- Independence era:
Participative management in India has taken to its roots quite early in time . This concept was introduced to the Indian soil by a few humanistic textile mill owners who sought the advice of workers' spokesmen so as to solve industrial disputes. After a few such minor incidents, business houses in India responded to the need of industrial democracy. The Tata Iron and Steel company at Jamshedpur was the first official business organization to set up a works committee which comprised of management and trade union representatives. In 1920, when the Government of India started joint committees encouraged the implementation of such an idea in private enterprises as well. So it can be said that it was that period in India when there were manager and worker bodies that maintained co-operation and provided a common platform for problems related to industrial management. The concept of participative management in the country took shape when the demand for industrial democracy was felt by the tripartite labour organization ( later on named Indian labour conference), trade unions and political leaders in 1940. Post - Independence era:

Participative management became a wider phenomenon post independence when the Industrial Disputes Act of 1947 provided for the establishment of a works committee in every industrial unit that employed more than a hundred employees. Along with this, the Industrial Truce Resolution that was adopted by the Tripartite conference in 1947 promoted labour management co-operation and Industrial Policy Resolution of 1948 provided for the workers' involvement in policies of industrial management. Industrial democracy has also been provided for in the constitution of independent India when it referred to all round democratic participation. In 1976, it was amended to the constitution by article 43- A that it would be imperative on the state to consider the participation of workers in industrial managers. Thereby, participative management became a constituent part of Five year plans and Industrial policy resolutions. There were several other developments with regards to the topic later on. Tripartite labour conference held in May 1977, recommended that a committee be set up to enable the smooth participation of labour in management issues. This led to the formation of a Tripartite committee on worker's participation in management and following were the recommendations of the committee in brief : •Corporate level and shop floor level should have a three tier system of labour participation •Supervisors or middle managers should have their representation in different participative forums •The scheme should be implemented and reviewed by organizations present both at the centre and state level Later on, the Sachar committee was formed to look into the introduction of workers' participation in the Board of Directors. This committee recommended that every company employing more than 1000 workers should comprise of labour participation in the Board of Directors. The committee also suggested that even if the number of employees is less than 1000 in a corporate organization, it should be allowed for workers to have their representation in the Board of Governors. Operating models for participative management in India

Since independence the government of India has promoted the participation of workforce in the management by introducing various models for operation from time to time. Five of such schemes introduced by the government are as follows. 1. Works Committee:

Among the first few steps taken to initiate industrial democracy in the country •Entailed in section 3 of the Industrial disputes act, 1947 •Equal number of employers and workmen representatives in a works committee for every organization with more than 100 employees •For Joint consultation in industrial...
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