Workers Participation In Management Management Essay

Workers amour In Management Management EssayWorkers employment is a system where workers and management share important information with each(prenominal) other and participate in decision taking. Workers participation in management is an essential ingredient of Industrial democracy. The concept of workers participation in management is base on Human Relations approach to Management which brought about a new set of values to labor and management.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-making. It is a process by which ascendence and responsibility of managing industry are shared with workers. purposes of Workers Participation in ManagementEconomic ObjectiveWorkers participation in management aims at increasing productivity of labor by improving cooperation between employer and employees. Productivity is sought to be addd by im proving job satisfaction and industrial relations.Social ObjectiveUnder participation, industry is considered as a social institution in which each and every worker has a vested interest. The purpose of participation is to ensure kind dignity and to get the workers a respectable status in the society.Psychological ObjectiveWorkers participation in management seeks to bring about a tilt in the attitude of the workers. Through participation, they will consider themselves an integral part of the industry rather than mere working hands. Participation provides the employees an opportunity to express themselves thereby satisfying their non-economic needs. It provides them a sense of belonging, pride and accomplishment.Importance of Workers Participation in ManagementWorkers Participation in Management provides the following benefitsMutual UnderstandingParticipation brings the two parties closer and makes them sure of each others problems. As a result, a better understanding and mutual trust can be created between employer and workers. high ProductivityCooperation between management and labor helps to increase production and profits of the industry. Participation improves employee motivation and job satisfaction which in turn help to increase their efficiency. Higher productivity leads to lower costs per unit and greater profits which are beneficial to all.Industrial HarmonyWorkers participation in management helps to come down industrial disputes and to improve workers loyalty. Continuous dialogue between management and workers improves peace in industry.Industrial DemocracyWorkers participation in management ushers in industrial democracy which is necessary for semipolitical democracy. Need for outside intervention between employer and employees is eliminated and workers are freed from exploitation.Less Resistance to ChangeWorkers often resist change delinquent to fear and ignorance. When workers participate in the decision making, they come to understand tha t change is ultimately in their own interest. They become more able and ready to suck in themselves to technological and other changes made to improve the competitive position of the company.Creativity and InnovationParticipation elevates workers to think and take initiative. Their talent and ability can be capitalized highly competent employees can be spotted and given prevention.Forms / Methods of Workers Participation in ManagementSuggestion schemesParticipation of workers can take place by suggestion scheme. Under this method workers are invited and encouraged to offer suggestions for improving the working of the enterprise. A suggestion box is installed and any worker can carry with his suggestions and drop them in the box. Periodically all the suggestions are scrutinized by the suggestion committee or suggestion screening committee. The committee is constituted by peer prototype from the management and the workers. The committee screens various suggestions received from the workers. Good suggestions are accepted for implementation and suitable awards are given to the concerned workers. Suggestion schemes encourage workers interest in the functioning of an enterprise.Works committeeUnder the Industrial Disputes Act, 1947, every establishment employing 100 or more workers is required to constitute a Works Committee. Such a committee consists of equal number of representatives from the employer and the employees. The main purpose of this committee is to provide measures for securing and preserving amity and good relations between the employer and the employees. voice Management CouncilsJoint consultation is the process whereby employer consults the workers either directly or through their representatives and seeks their opinion on various issues while retaining to him the right of taking last-place decisions. Joint consultation is a popular form of popular participation in management. These councils consist of equal number of representatives of the employers and employees, non exceeding 12 at the plant level. The council discusses various matters relating to the working of the industry. This council is entrusted with the responsibility of administering welfare measures, supervision of safety and health schemes, scheduling of working hours, rewards for suggestions etc.Work directorsUnder this method, one or two representatives ofworkers are nominated or elected to theBoard of Directors. This is the full-fledged and highest form ofworkers participation in management.The basic idea behind this method is thatthe representation of workers at the top-level wouldusher Industrial Democracy, congenial employee-employer relations and safeguard the workers interests. TheGovernment of India introduced thisscheme in several public sectorenterprises such as Hindustan Antibiotics, Hindustan natural Chemicals Ltd etc. However the scheme of appointment of such adirector from among the employees failed miserably and thescheme was subsequently dropped.Co-partnershipCo-partnership involvesemployees participation in the share capital of a company inwhich they are employed. By virtue oftheir being shareholders, they havethe right to participate in themanagement of the company. Shares of thecompany can be acquired by workers making cash payment or by wayof stock options scheme. The basic objective of stock options is not topass on control in the hands ofemployees but providing better financial incentives forindustrial productivity.Shop councilsGovernment of India, on the 30th of October 1975 announced a new scheme in WPM. In every Industrial establishment employing 500 or more workmen, the employer shall constitute a support council. Shop council represents each department or a let on in a unit. Each shop council consists of an equal number of representatives fromboth employer and employees. The employers representatives will be nominated by the management and moldiness consist of persons in spite of appearance the establ ishment. The workers representatives will be from among the workers of the department or shop concerned. The total number of employees may not exceed 12.Workers Participation in Management in IndiaWorkers participation in Management in India was given importance only after Independence. The workers participation in management is not new even though it got encouragement only after independence. In 1920, Mahatma Gandhi observed Employees should not regard themselves as sole owners of mills and factories of which they may be legal owners. They should regard themselves trustees.Industrial Disputes Act, 1947 was the premier step in this direction, which recommended for the setting up of works committees. The joint management councils were established in 1950 which increased the labor participation in management. Since July 1975 the two-tier participation called shop councils at shop level and Joint councils were introduced. Workers participation in Management Bill, 1990 was introduced in Parliament which provided scope for upliftment of workers. But still in India, workers participation is not given so much importance because of several(prenominal) of the reasons. These reasons could be discussed below.Reasons for Failure of Workers Participation in IndiaSome of the reasons for the failure of Workers Participation in India can be are as followsEmployers have by and large resisted workers participation in decision-making. They feel that workers are not competent enough to take decisions. There is no clear evidence to convince coachs that participative management will really lead to higher productivity and profitability.Lower level needs of workers are not richly satisfied. Therefore majority of Indian workers are not motivated enough to assume decision making responsibility either directly or through their representatives.Workers representatives who participate in management have to perform the dual role of workers spokesmen and co-managers. Very few representa tives are competent enough to assume the two inconsistent roles.Generally trade union leaders, who represent workers, are also active members of political parties. While participating in management they give priority to political interest rather than the interests of the workers.Schemes of workers participation have been initiated and sponsored by the government. There has been a lack of initiative on the part of both the employers and the trade unions.The focus has been on participation at higher levels. As a result rank and file of workers are not involved in decision making on matters directly affecting them.In India, labor laws regulate virtually all terms and conditions of employment at the work place. Workers do not feel the push to participate.The unwillingness of the employer to share powers with the workers representatives, the disinterest of the workers and the perfunctory attitude of the government towards participation in management act as stumbling blocks in the way o f promotion of participative management.Measures for making Participation effectiveEmployershouldadopt aprogressiveoutlook. They shouldconsiderthe industry as a joint endeavor in whichworkers have an equal say. Workers should be provided and enlightened about the benefits of their participation in themanagement.Employersand workers should agreeon theobjectivesof theindustry.They should recognize and respect the rights of each other.Workers and theirrepresentatives should be provided education and trainingin thephilosophy and process of participative management. Workers shouldbe made aware ofthe benefits of participative managementThere shouldbe effective communicationbetweenworkersand management and effective consultation of workers by the management in decisions that have an impact on them.Participationshouldbe a continuousprocess.To beginwith, participation should start at the operating level ofmanagement.A mutual co-operation andcommitment to participationmust be developed by bot h management andlabor.Modern scholars are of the mind that the old adage a worker is a worker, a manager is a manager never thetwain shall meet should be replaced by managers and workers are partners in the progress of business. Thus the above given are some of the measures to improve upon the failure of workers participation in India.