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PROJECT REPORT ON
“WORKERS PARTICIPATION”
SUBMITTED TO
DEPARTMENT OF BUSSINESS ADMINISTRATION
IN THE PARTIAL FULFILLMENT OF
SY.BBA DEGREEE OF
SAVITRIBAI PHULE PUNE UNIVERSITY
SUBMITTED BY
SHUBHAM SURESH CHUARE
ROLL NO:-12
GUIDED BY
PROF:- VINITA KUYATE
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DECLARATION
I shubham suresh chaure student of (S.Y) BBA in the K.K.Wagh college, solemnly
declare that the project titled “workers participation” carried out by me in partial
fulfiillment of the BBA program under the university of Pune.
This project was undertaken as part of academic curriculum as per university rules
and by no commercial interest or motive. It is my original work and not submitted
elsewhere for any other purpose earlier.
Date : Signature
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GUIDE CERTIFICATE
This is certify that the project report “workers participation” is submitted in the
partial fulfiillment of the requirement for Bachelor of Business Administration and
has worked under my supervision & guidance and that no part of his report has been
submitted for the reward of any other Degree, Diploma, or any other similar titles or
prizes and that the work has not been published in any journal or magazine.
INDEX
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Sr.No Chapter Name Page No.
1 Introduction
2 Definitions
3 Importance
4 Objectives
5 Characteristics
6 Scope
7 Advantages
8 Disadvantages
9 Limitation
10 Forms
11 levels
12 Conclusion
13 Bibliography
14
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K.K. Wagh Education Society’s
K.K.Wagh Arts, Commerce, Science & Computer Science College, Nashik.
Saraswati Nagar, Adgaon Road, Panchavati, Nashik-422003, Maharashtra
(Affiliated to Savitirbai Phule Pune University)
Accredited by NAAC: ‘B’ Grade(CGPA 2.50)
SPPU ID : PU/NS/S/71/2002 College Code : 701 A.I.S.H.E. Code : C-41802
+ 91 253- 2303100, 2303373, 2303774 principal-seniornashik@kkwagh.edu.in www.ascn.kkwagh.edu.in
Completion Certificate
Date:
successfully completed his / her project titled WORKERS PARTICIPATION as per the norms of
Savitribai Phule Pune University under the guidance Mrs. VINITA KUYATE for the academic
year 2022-2023.
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INTRODUCTION WORKERS PARTICIPATION
MEANING:-
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DEFINITIONS OF WORKERS PARTICIPATION
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through their representatives, at all the appropriate levels of management in the
entire range of managerial action”.
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5) Industrial Democracy:
Industrial democracy refers to the involvement of employees in decision-
making and sharing of authority and responsibility related to important
industrial matters.
WPM brings about equality in the organization and provides a degree of
industrial balance.
6) Commitment towards Goals:
When the individual worker is involved in decision-making and gets an
opportunity to express his thoughts and opinions, he feels a deeper sense of
belongingness with the organization. He realises that he has a role to play in
the management of the business, and therefore is more committed towards
the organizational goals.
7) Individual Growth and Development:
Individuals get a chance to develop their skills and capabilities while
participating in the management processes. They are required to be creative,
Innovative and responsive in their interaction with the management and this
helps them to develop more as a human being in the process.
8) Responsiveness to Change:
Normally, workers in any organization are resistant to change. They are
reluctant to adopt the changes that the management forces upon them. But
when they get a chance to participate in the decision-making process, they
can clear their.. doubts and insecurities regarding the proposed changes. If the
workers are made aware of the consequences of the change, then they will be
more responsive towards it.
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OBJECTIVE OF WORKERS PARTICIPATION
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CHARACTERISTICS OF WORKERS PARTICIPATION
4. Worker’s participation in
management differs from
collective bargaining in the
sense that while the former is
based on mutual trust,
information sharing and
mutual problem solving; the
latter is essentially based on
power play, pressure tactics, and negotiations.
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LEVELS OF WORKERS PARTICIPATION
Having known the objectives of WPM, the question then is to what extent workers
can participate in decision-making process. In other words, it is important to know
the extents/levels of co-determination in an organisation. Viewed from this angle,
Mehtras has suggested five levels of workers’ participation ranging from the
minimum to the maximum. Since these levels of workers’ influence the process and
quality of decision making in an organisation. We are therefore highlighting here
these levels briefly ranking them from the minimum to the maximum level of
participation.
Informative Participation:
This refers to management’s information sharing with workers on such items those
are concerned with workers. Balance Sheet, production, economic conditions of the
plant etc., are the examples of such items. It is important to note that here workers
have no right of close scrutiny of the information provided and management has its
prerogative to make decisions on issues concerned with workers.
Consultative Participation:
In this type of participation, workers are consulted in those matters which relate to
them. Here, the role of workers is restricted to give their views only. However the
acceptance and nonacceptance of these views depends on management.
Nonetheless, it provides an opportunity to the workers to express their views on
matters involving their interest. The workers are consulted on matters that directly
affect them such as work safety and health.
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The workers' role is only advisory, the final decision is always taken by the top
management. They may or may not consider the workers' suggestions.
Associative Participation:
Here, the role of the workers’ council is not just advisory unlike consultative
participation. In a way, this is an advanced and improved form of consultative
participation. Now, the management is under a moral obligation to acknowledge,
accept and implement the unanimous decision of the council.
The managers and workers jointy take decisions. The management is obliged to
consider the decisions of the employees and implement them. This is a natural
extension of consultative participation.
Administrative Participation:
Decisive Participation:
Here, the decisions are taken jointly by the management and the workers of an
organisation. In fact, this is the ultimate level of workers’ participation in
management.
This is the highest level of participation where the management and the
employees interact on a regular basic , discuss issues related to various aspect of
management and jointly arrive at decision that are beneficial to all the parties
involved .
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SCOPE OF WORKERS PARTICIPATION
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Social Decision-Making:
It refers to employee involvement in decision making regarding hours of work,
rules and regulations at workplace, welfare measures, workers’ safety, employee
welfare, health and sanitation. In this category, employees have a say in decisions in
these areas. They may take an advantage of their liberty and sometimes, can
dominate the management.
Economic/Financial Decision-Making:
It includes involvement of employees on various financial or economic aspects
such as the methods of manufacturing, cost cutting, automation, shut-down,
mergers and acquisition and lay-offs. Inviting ideas from employees on various
issues like how to cut down the operating cost can work wonders.
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Personnel Decision-Making:
The employees’ participation in personnel decision-making refers to their
involvement in various management processes including recruitment and selection,
work distribution, promotions, demotions and transfers, grievance handling,
settlements, voluntary retirement schemes and so on. Participation of employees in
these processes can safeguard their interests and motivate them to work hard for the
betterment of self as well as the organization.
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ADVANTAGES OF WORKERS PARTICIPATION
Motivation:
Participation creates a positive work environment. Employees may have the chance
to show creativity and analytical ability. These opportunities make them more
motivated..
Increases Goodwill:
Participation helps to build a good relationship between management and
employees. It increases employee's efficiency and they can produce quality
products and services for the customers. A good working condition is available at
work. All this increases the goodwill of the organization.
Work Enthusiasm:
The manager may accept the employee's idea or not. When their ideas are accepted
they feel proud and become more enthusiastic about their work. When management
does not accept their ideas and shows the logic behind refusal work enthusiasm will
not reduce.
Better operations:
Organizations will run better if staffs are more loyal, feel needed, and wanted.
They feel that they are respected, and their opinions count. If management
proactively seeks their input into decision-making, decisions tend to be better when
they can call on a wider range of knowledge, information, and experience.
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When all employees, instead of just managers or executives, are given the
opportunity to participate, the chances are increased that a valid and unique idea
will be suggested.
Accept of Decision:
Employees accept any kind of decision without showing an argument. Because
management asks their suggestions and proposal while making a decision. As they
participate in the decision process so workers accept the decision and work to
implement it.
Effective decision:
Decision is the process of selecting the best alternative. For a single problem,
different people may give different solutions, even thousands of solutions. So
participation facilitates the decision process.
Increase trust:
Trust is an important factor in leadership. Participatory approaches usually mean
that decision making is more transparent. That, in turn, increases the trust of the
staff, and the leadership of the manager is increased. And transparency itself tins an
added benefit to this approach.
Effective decision:
Decision is the process of selecting the best alternative. For a single problem,
different people may give different solutions, even thousands of solutions. So
participation facilitates the decision process.
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Increase capacity & influence of management:
Participation creates mutual faith, understanding, and cooperation. So, employees
hardly disagree with the manager's decisions. It indicates that the manager can
easily influence the employees to implement various decisions.
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DISADVANTAGES OF WORKERS PARTICIPATION
Communication Complexity
More lines of communication and the potential for inconsistent decision making are
disadvantages with employee involvement systems. When more employees have
input and decision-making ability, more communication is necessary to make
certain that decisions are consistent across the organization. This consistency is
critical to brand recognition and consistency. Managers may have a hard time
monitoring decisions and activities with employee involvement to protect against
negative consequences and to restrict the potential for chaos.
Manager-Employee Boundary
One potential challenge of encouraging employee involvement is the risk that the
line of distinction between the management level and employee level becomes
blurred. Though managers may value employee involvement, a disciplined structure
with clear reporting lines have long been vital to stability in organizations.
Allowing employees to share ideas and make decisions without having them push
the envelope and try to take on responsibilities that are reserved for management
levels is a real risk.
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LIMITATION OF WORKERS PARTICIPATION
2. Workers Incompetence
Another difficulty arises when workers make proposals in areas where they are not
competent.
Then, when their idea is rejected, they refuse to support whatever course of action
was adopted and soon become alienated. A related problem is that some workers
expect to be consulted on every issuer, even those to which they cannot contribute.
When they are not consulted, they become resentful and uncooperative.
4. Means of Manipulation
A serious drawback with worker’s participation is that it can be used to manipulate
employees. This manipulation is not necessarily by management. It may be
manipulation by the union or by experts who are skilled in group dynamics.
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5. Feudalistic Concept
The feudalistic concept of the master and the servant s still prevalent among
industrial workers, especially in India. Workers have an innate feeling that they are
born to serve and not to rule. Participative management, naturally, is of little
interest to such workers.
6. Lack of Initiative
Employees lack initiative, expertise, and self-confidence in participating
in managerial decision-making.
7. Unskilled Representatives
Participation of unskilled representatives of employees may result in arriving at
unfavorable decisions which may adversely affect the interests of employees.
8. Avoidance of Ideas
It leads to frustration among employees if their suggestions are not accepted by the
management.
9. Unwillingness
The unwillingness of the employers to share power with the worker’s
representatives is also a serious problem. Workers also remain disinterested.
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FORMS OF WORKERS PARTICIPATION
Co-Ownership:
Workers are made shareholders by allotting those shares in the company.
They are employees as well as owners of the business concern. Thus, their
participation in the management is automatically guaranteed.
Works Committee:
The Industrial Disputes Act, 1949 provides for the setting-up of works,
committees as a scheme of workers participation in management which consist
of representatives of employers and employees. The Act provides for these
bodies in every undertaking employing 100 or more workmen.
The Bombay Industrial Relations Act, 1946 also provides for these bodies. but
under the provisions of this Act they can be set-up only in units which have a
recognized union and they are called joint committees. The workers directly
elect their representatives where there is no union.
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Joint Management Councils (JMCs):
The Second Five Year Plan recommended the setting-up of joint councils of
management consisting of representatives of workers and management. The
Government of India deputed a study group (1957) to study the schemes of
workers' participation in management in countries like U.K., France, Belgium
and The report of the study group was considered by the Indian Labour
Conference (ILC) in its 15th session in 1957/and it made certain
recommendations:
(a) That workers' participation in management schemes should be set-up in
selected undertakings on a voluntary basis.
(b) A sub-committee consisting of representatives of employers, workers and
government should be set-up for considering the details of workers'
participation in management schemes. This Committee should select the
undertakings where workers' participation in management schemes would be
introduced in the first stage on an experimental basis.
Joint Councils:
The joint councils are for the whole unit and its membership remains
confined those who are actually engaged in the organization. The tenure of
the joint councils is for two years. The Chief Executive of the unit becomes
its Chairman. Workers members of the council nominate the Vice Chairman.
The joint council appoints the Secretary The Secretary is responsible for
discharging the functions of the council. The joint councils will meet once in
four months, but the periodicity of the meeting varies from unit to unit, it
may be once in a month, quarter etc.
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The decisions taken at the joint council meetings are by the process of
consensus and the management shall implement the decisions within one
month. The scheme was implemented by the major units of the central and
State governments.
Shop councils:
The shop council represents each department or a shop in a unit Each shop
council will consist of an equal number of representatives of employers and
workers.
The employers' representatives will be nominated by the management and
must consist of persons from within the unit concerned. The workers
representative will be from among the workers of the department or shop
concerned. The number of members of each council may be determined by
the employers in consultation with the recognized union. The total number of
members, however, may not generally exceed twelve. The decisions of the
shop council are to be taken on the basis of consensus but not by voting
Management has to implement the decisions within one month.
The tenure of the shop council is for a period of two years. Members of the
shop councils meet at least once in a month. Management nominates the
Chairman of the shop council whereas workers' members of the council elect
the Vice-chairman of the council.
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Unit Councils:
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LEVELS OF WORKERS PARTICIPATION
workers participation may exist in all levels of management, however it may vary
from management to management. Participation of workers in management is more
likely at lower level and less involvement at top level of management. Broadly
speaking there are following file levels of participation of workers in management.
1. Information participation of workers:
It ensures that employees are able to receive information and express their views
pertaining to the matters of general economic importance.
2. Consultative participation of workers:
Under this kind of workers participation in management, May act as a consultant in
the matters of workers safety, health and their welfare at workplace. Even so,
ultimate decision lie in the hands of management, only employees views are
considered as advise.
3. Associative participation of workers:
This kind of workers participation in management is next level to consultative
participation. under associative participation of workers in management, morally
bound to accept and implement the opinion of employees.
4. Administrative participation of workers:
Under this kind of participation of workers in management, workers the part in
discharge of managerial functions. Here employees take part in decisions, which
were already taken by the management, thereupon employees have to select the best
from those decisions for the purpose of implementation.
5. Decisive participation of workers:
Decisive participation is the highest level of workers participation in management,
where employees and management together taking decisions on the matters related
to workers welfare and production related issues.
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CONCLUSION
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BIBLIOGRAPHY
Websites:
www.google.com
www.edukedar.com
www.theintactone.com
www.managementstudyguide.com
BOOK: AUTHOR
HUMAN RESOURCE MANAGEMENT Dr. Shalaka Parker
FUNCTIONS AND PRACTICES
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