employee participation

This power point presentation will be useful for management students.

1. EYE - CATCHERS Group Leader :- Seema Ansari Group Membe rs :- Anamika Chauhan Yashika Vala Barot Shital Sumitra Thakor Krunal Khatri Afzal Khan Iqbal Baluch

2. employee PARTICIPATION

3. Introduction Workers’ participation in management is an essential ingredient of Industrial democracy. 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. Traditionally the concept of Workers’ Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organization. Workers’ participation is also known as ‘labour participation’ or ‘employee participation ’ in management.

4. The International Labour Organization has been encouraging member nations to promote the scheme of Workers’ Participation in 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- The philosophy underlying workers’ participation stresses :-  Democratic Participation In Decision-making; Maximum Employer-employee Collaboration; Minimum State Intervention; Realisation Of A Greater Measure Of Social Justice; Greater Industrial Efficiency; And Higher Level Of Organisational Health And Effectiveness.

5. Definitions

6. Workers’ participation, may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves The main implications of workers’ participation in management as summarized by ILO: Workers have ideas which can be useful; Workers may work more intelligently if they are informed about the reasons for and then intention of decisions that are taken in a participative atmosphere

7. According to  Keith Davis , Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share the responsibility of achievement.

8. Objectives of employee participation Economic Objective Social Objective Psychological Objective

9. Development of Participation Schemes Before Participation After Participation Directive Principle of State Policy Article – 43 A The Indian Labour Conference, 1957 Second Seminar on Labour -Management Co-operation was held in 1960 Standing Committee, 1961 The New Scheme (1984) The 1990 Bill

10. Forms of employee participation Collective Bargaining Works Committees Profit Sharing Workers’ co-partnership Suggestions Scheme Joint Management Councils and Committees Employee’s Representation on the Board of Directors

11. Collective Bargaining Collective bargaining results in collective agreements which lay down certain rules and conditions of service in an establishment. Such agreements are normally binding on the parties. Theoretically, collective bargaining is based on the principle of balance of power, but, in actual practice, each party tries to outbid the other and get maximum advantage by using, if necessary, threats and counterthreats like; strikes, lockouts and other direct actions. Joint consultation, on the other hand, is a particular technique which is intended to achieve a greater degree of harmony and cooperation by emphasising matters of common interest. Workers prefer to use the instrument of collective bargaining rather than ask for a share in management.

12. Works Committees Work committees were expected to discuss matters of common interest and to maintain cordial relations between workers and employees. The Industrial Disputes Act, 1947, provides for the setting up of bipartite works committees as a scheme of workers participation in management that consist of representatives of employers and employees. The Act provides for these bodies in every undertaking employing 100 or more workmen.

13. Profit Sharing Profit Sharing implies payment of a specified share to the works in the annual profit of the firm where he is employed. In Profit sharing “a certain percentage as the profit is distributed at fixed intervals , usually annually in some definite ratio to all employees who have been in the employment of the firm for a status term.” -- Kimball and Kimball

14. Workers’ co-partnership This method is wider scope than profit sharing under this method a worker receives some share in the final profits of the firm over and above his standard wages and other benefits . Thus they become shareholders of the firm and gain all the rights and responsibilities of the shareholders.

15. Suggestions Scheme Under this method suggestion boxes are installed in all departments and it is publicly announced that all the employees are invited to suggest or the improvement in the method or technique of working department into the suggestion boxes installed in their respective departments. A suitable reward of prize is also announced for the really original & useful suggestion. In India the Tata Iron & Steel Co., Jamshedpur was the first to employ this method with much success. They have given it name of ‘partnership for Progress’ .

16. Joint Management Council Mainly these bodies are consultative and advisory , with decision-making being left to the top management. This system of participation is prevalent in many countries, including Britain and India . As they are consultative and advisory, neither the managements nor the workers take them seriously.

17. Employee’s Representation on the Board of Directors It recommended the appointments of workers representatives on the board of management. The role of a worker representative in the board of directors is essentially one of negotiating the worker’s interest with the other members of the board. At times, this may result in tension and friction inside the board room. The effectiveness of workers’ representative at the board depend upon his ability to participate in decision-making, his knowledge of the company affairs, his educational background, his level of understanding and also on the number of worker representatives in the Board.

18. Advantages of employee participation Increase in Mutual Understanding Increase in Production Industrial Peace Way to self - expression Avoidance of External Intervention Minimized the Problems of Labour turnover Increasing in worker’s commitment Better utilization of creative capabilities of workers

19. Effective employee Participation Managerial Attitude Union Cooperation Meaningful Participation Workers’ Attitude

20. Workers‘ Participation at TISCO Since Tata Iron and Steel Company are the pioneers in establishing joint consultation in India, it isworthwhile to look at workers' participation at TISCO.Closer association of employees with management at TISCO began in 1919 and was formalized inAugust 1956. The purpose was to promote increased productivity, provide a better understanding to theemployees of their role and importance, and to satisfy the urge for self expression. The scheme as set upat  TISCO consist f a three-tiered system with joint department councils (JDCs) constituted at  thedepartmental level. Next, joint works councils (JWC) for the entire work, and at the top the jointconsultative council of management (JCCM). The specific functions of these three bodies were asfollows : JDCs were “to study operational results and production problems, advice on the steps deemed necessaryto  promote and rationalize production, improve productivity and discipline and economize  cost.Promotion of welfare and safety, encouragement of suggestions and improvement of working conditionsalso fell within their purview.”JWCs were “to discharge special function of reviewing every month the working of JDCs and other committees such as Suggestion Box Committee, Safety Committee, Canteen Managing Committee, etc.”JCCM was given the task of advising management on production and welfare and also looking at mattersreferred to by JDCs and JWCsIn order to ensure that these committees did not overlap the functions of other committees, separate task groups were formed. Special courses were offered to prepare both management and union representativesto effectively utilize the facility. TISCO's experience with workers' participation has been satisfactory.From 1957 to the middle of 1972 JDCs have discussed a total of 14,104 suggestions of which 70.3 per cent have been implemented. These suggestions have covered a wide range of topics and issues, but themost important point to remember, perhaps, is that the councils have been successful in involvingworkers equally in the process of production

21. Referances Prof. Santosh Gupta & Sachin Gupta, Human Resource Development,Concepts and Practices, Second Edition (2008). Dr. Ratna Sen , ILO ,Employee participation in India ( 2012 ) K . Ashwathapa : “human Resource Management. Text And Cases, Sixth Edition (2011)

22. Useful Web-Based Resources http://www.whatishumanresource.com http://www.scribd.com