Worker's Participation in Management

Topics: Trade union, Employment, Collective bargaining Pages: 9 (2264 words) Published: April 3, 2013
National Seminar on Inclusive Growth & Innovative Practices in Management

Topic: worker’s participation in management



The logic behind employee participation is quite simple. By involving workers in those division that affects them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive and more satisfied with their jobs. The article unfolds the mystery surrounding employees involvement in a clear way, keeping the peculiar Indian work environment in the back ground. The article deals with the definition, importance, objectives and forms of participation of workers in the management along with its gradual evolution in India.



WPM is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of an undertaking and through which they express their opinion and contribute to mgt decisions.

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 worker’s urge for self-expression, thus leading to industrial peace, better relations and increased co-operation.

The main implications of workers’ participation in management as summarized by ILO: o Workers have ideas which can be useful;
o Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere.

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.

o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas.

Evolution of participative management in India:

-The beginning towards WPM was made with the Industrial Disputes Act, 1947, which made Works Committees mandatory in industrial establishments employing 100 or more workers. -The Industrial Policy Resolution adopted by the government in 1956 stated that there should be some joint consultation to ensure industrial peace, and improve employer-employee relations. -The functions of both these joint bodies were to be consultative and were not binding on the management. -The response to these schemes was encouraging to begin with, but gradually waned. -A study team was appointed in 1962 to report on the working of joint councils and committees.  -The team identified some reasons for their failure.

- No concrete steps were taken to remove the difficulties, or change the pattern of participative management. -During the emergency of 1975-77, the interest in these schemes was revived by the then Prime Minister by including Workers’ Participation in industry in the government’s 20-point programme. -The government started persuading large enterprises to set up joint consultative committees and councils at different levels. -The Janata Government who came to power in 1977 carried on this initiative. It was again emphasized by the Congress government who came back n 1979. This continued in a “non-statutory vein” till the late 1980s, and the response from the employers and employees stayed luke-warm. - Then, the 42nd Amendment to the Constitution was made.

- Now, Article 43-A reads: The State shall take steps, by suitable legislation, or in any other way, to secure the participation of workers in the management of undertakings, establishments or other...

References: * V.G. Mhetras, “participation in management”.
* B.R. Vermani, “workers participation in management”.
* Internet sources:
* http://users.ids.net_brim/sdwtt.html
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