eHRM 8 Employee Participation.ppt about employee relations

HRM

1. HRM
Employee Participation
Prof R K Singh
AIMA CME

2. Employee Participation
“The participation resulting from practices
which increases the scope for employee’s
share of influence in decision making at
different tiers of organizational hierarchy
with concomitant assumption of
responsibility.”
-The International Institute of Labour Studies.

3. Implications of Workers’ Participation
1.Workers have ideas which can be useful
2.Upward Communication facilitates sound
decision making. Workers may accept
decisions better if they participate in them.
3.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.

4. Implications of Workers’ Participation
4.Workers may work harder if they share in
decisions that affect them.
5.Workers participation may foster a more co-
operative attitude amongst workers and
management thus raising efficiency by
improving team spirit and reducing the loss
of efficiency arising from industrial disputes
6.Workers participation may act as a spur to
managerial efficiency.
-International Labour Organization.

5. 5 Interpretation of Participations
1.Informative Participation:
Sharing of information with workers regarding,
•Economic position of the firm
•State of the market
•Production & Sales programme
•Work Methods
•Balance Sheet
•Expansion Plans
The workers have no right to scrutinize the
information provided by Management.

6. 5 Interpretation of Participations
2Consultative Participation:
This involves a higher degree of sharing of
views of the workers and giving them a
chance to express their views on various
issues concerning Work, Workplace, Working
Conditions, Market Standing, Financial
Status etc.
Here, the joint council of workers and
Management works as an advisory body only.
Management may or may not accept the
suggestions.

7. 5 Interpretation of Participations
3.Associative Participation:
Here the council is not purely advisory. The
Management is under a moral obligation to
accept and implement the unanimous
decisions of the council.
4.Administrative Participation:
Here there are a greater degree of sharing authority
and responsibility of managerial work and allows
workers a little more autonomy in exercising
administrative and supervisory powers in respect of
welfare, safety, benefits, rewards, etc

8. 5 Interpretation of Participations
5.Decisive Participation:
This is the highest form of participation where
decisions are taken jointly on matters relating
to production, safety, welfare, etc.

9. Works Committees : 1947
“The Industrial Disputes Act, 1947”provides for
the setting up of Bipartite Works Committees
as a scheme of workers participation in
management which consist of representatives of
employers and employees.
The aim is to promote measures for maintaing
harmonious relations in the work place and to
sort out differences of opinion on work related
issues. E.g. Work Condition and Benefits.

10. Structure of Works Committee
President : Employer Nominee
Vice-president: Workers’ Representative
Secretary
Joint Secretary
Tenure: 2 Years
Total Strength : 20
Examples: TISCO, Indian Aluminium Works at
Belur, Hindustan Lever.
Compulsory for every undertaking employing 100
or more workers.

11. 10
Joint Management Councils (JMCs)
1958, 2
nd
Five Yr Plan)
Objectives:
1.To increase the association of employers and
employees by promoting cordial industrial
relations
2.To improve the operational efficiency of the
workers
3.To provide welfare facilities
4.To educate workers so that they are well
prepared to participate in these schemes and
5.To satisfy the psychological needs of workers

12. 11 12
Functions of JMCs
1.To be consulted on matters like,
-Standing Orders,
-Retrenchment,Closure,
-Reduction of Operations etc.
2.To receive information, to discuss and offer
suggestions
3.To shoulder administrative responsibilities
like maintaining Welfare Measures, Safety
Measures, Training Schemes, Working Hours,
Payment of Rewards

13. 12
Worker Director (1970)
Following the recommendations of
Administrative Reforms Committee the
Government has accepted that
representatives of workers be taken on the
Board of Directors of Public Sector
Undertakings.
It was introduced in Hindustan Antibiotics
Ltd., Hindustan Organic Chemicals Ltd.,
National Coal Mines Development
Corporation, BHEL etc.

14. 13
Shop & Joint Councils (1975 & 77)
This envisaged the setting up of,
-Shop Councils at the Shop/Departmental
level and
-Joint Councils at the enterprise level.
These were to be introduced in
manufacturing and mining units
employing 500 or more workers-whether
in public, private or co-operative sector.

15. 14
The New Scheme (1984)
A new scheme of Workers’ Participation in
management was prepared and notified in
1984 after reviewing the progress of various
schemes in industry.
1.Its applicable to all central Public Sector
Enterprises
2.It was decided to allow workers to participate
at the Shop level, the Plant level, and the
Board level.
3.The mode of representation of Workers’
Representatives was to be determined by
consultations with Union/s.

16. 15
The New Scheme (1984)
4.A wide range of work related issues
(Personnel, Welfare, Plant
Management, Operations, Financial
Matters, etc.) were brought within the
ambit of the Councils.
5.The Ministry of Labour constituted a
Tripartite Committee to review the
working of the scheme and to suggest
corrective measure.

17. 16
The 1990 Bill
The existing non-statutory schemes of Workers’
Participation have failed to give meaningful
participation to workers at the enterprise
level.
To remedy the situation the Government
introduced a Bill in the parliament on 25
th
May, 1990 to,
1.Offer Meaningful Three-tier participation to
workers in Management at three levels,
-Shop Floor
-Enterprise and
-Board Level

18. 17
The 1990 Bill
2. The proportionate share of worker
representatives and the persons representing
other workers in the Board of Management in
every undertaking is put as 13% and 12%
respectively.
3.Formulate schemes specifying detailed criteria
regarding nomination of representatives from
workers, the power of Shop Floor Councils
and Establishment Council have also been
extended to cover a wide range of Production,
Operational, Economic, Financial, Personnel,
Welfare and Environmental issues.

19. 18
The 1990 Bill
4.Provide for the principle of secret ballot
for choosing representatives of workers
5.Provide for rules for monitoring the
program
6.Extend the coverage of the scheme to all
corporate establishments.