Workers participation in management and its present status in india
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Workers' participation in management aims to involve workers in enterprise decision-making. This document outlines the history and forms of workers' participation in India. It began in the 1920s but gained momentum post-independence through acts like the Industrial Disputes Act of 1947. Common forms of participation included works committees, joint management councils, and worker directors. However, progress has been limited due to factors like ideological differences between workers and management.
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Workers participation in management and its present status in india
2. INTRODUCTION
• Workers’ participation in management implies mental and
emotional involvement of workers in the management of
Enterprise. It is considered as a mechanism where workers have a
say in the decision.
• It is a system of joint consultation in the industry, as a form of
labour industry
• The concept of workers’ participation in management is based on
Human Relations approach to Management which brought about
a new set of values to labour and management.
3. COLLECTIVE BARGAINING
• It is a source of solving the problems of employees in the work situation
collectively.
• It provides a good climate for discussing the problems of workers with their
employers.
• The employees put their demands before the employers and the employers
also give certain concession to them. Thus it ensures that the management
cannot take unilateral decision concerning the work ignoring the workers.
• It also helps the workers to achieve responsible wages, working conditions,
working hours, fringe benefits etc.
• It provides them a collective strength to bargain with employer. It also
provides the employers some control over the employees.
4. OBJECTIVES OF WPM
• Raise the level of motivation of workers
• Opportunity of expression and sense of importance to workers
• Counter balance power of managers
• Establish industrial democracy
• Satisfy workers social and esteem needs
5. • The philosophy underlying workers’ participation stresses:
– Democratic participation in decision-making;
– Maximum employer-employee collaboration;
– Minimum state intervention;
– Realization of a greater measure of social justice;
– Greater industrial efficiency; and
– Higher level of organizational health and effectiveness.
6. IMPORTANCE OF WPM
• Reduced industrial conflict
• Reduced misunderstandings
• Higher productivity
• Better communication
• Industrial democracy
• Less resistance to change
7. SUCCESS OF WPM
• Strong, democratic and representative unionism
• Mutually agreed objectives
• Effective consultation of workers
• Faith
• Legislative support
• Education and training
• Specific guidelines
13. WORKS COMMITTEE
• Under section 3 of Industrial
Disputes Act 1947 the appropriate
government mar require an
enterprise employing 100 or more
workers, to constitute a works
committee..
14. JOINT MANAGEMENT
COUNCILS (JMCS)
• Introduced in 1958.
• Formed at plant level with equal number of representatives from the
employers and the employees.
• Matters discussed – working conditions, indiscipline, absenteeism, training,
safety, accident prevention, etc.
15. BOARD REPRESENTATION
• One or two representatives of
workers are nominated.
• Highest form of workers
participation
• Government itself, as an employer
introduced this scheme in several
public sector enterprises.
16. CO-PARTNERSHIP
• Employees participation in the
share capital of their own
company.
• Workers are allowed to make
payments in installments,
advanced loans or even give
financial assistance to workers to
buy equity shares of the company.
17. WORKERS’ COMPLETE
OWNERSHIP
• Under this scheme the workers
acquire complete control of the
management of their enterprise
through the elected board.
• It is also known as “SELF
MANAGEMENT”
• This scheme mostly prevails in
Yugoslavia.
21. BEFORE INDEPENDENCE
• In 1920, Mahatma Gandhi has suggested the idea of worker participation in
India.
• In the same year workers and employees in Ahemdabad Textile industry
agreed to settle their disputes by joint discussions and consultations, i.e,
participative management in India and such committees were also setup in the
Tata Iron and Steel company.Jamshedpur.
22. AFTER INDEPENDENCE
• The first major step in the direction of workers participation in management
in India was the enactment of the INDUSTRIAL DISPUTES ACT,1947 with the
dual purpose of prevention and settlement of industrial disputes.
• The first five year plan and the successive plans emphasized the need of the
workers participation in management.
• The government of India set up a “STUDY GROUP ON WORKERS’
PARTICIPATION IN MANAGEMENT”, in 1956 to examine the system of WPM
in the UK, Sweden, France, Belgium, Yugoslavia and to make
recommendation for the Indian case.
23. • Upto July 1975, there had been three forms of workers participation in
management introduced in India
– Works Committees, Joint Management Councils and Workers-
Directors(public sector) on board of director.
• In June 1977, the Indian Government setup up a high powered Expert
Committee on companies and MRTP Acts under the Chairmanship of Rajinder
Sachar.
• The Janta Government also set up a “Committee on Workers Participation in
Management and Equity” in September 1977 under the Chairmanship of
Ravindra Varma, the then Union Minister of Labour.
• Finally, in May 25 1990 the “PARTICIPATION OF WORKERS IN MANAGEMENT
BILL 1990” was introduced.
24. CONCLUSION
• It gives worker a feeling that he is an integral and important part of the
organization.
• Participation creates a climate in which he may get a reasonable opportunities
to show his skills and worth.
• So far the progress of WPM in India has not been satisfactory because of the
reason like ideological differences, absence of strong trade unions, illiteracy of
the workers, absence of positive spirit.