summary and conclusions -...
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CHAPTER VI
Summary and Conclusions
Introduction
Workers participation In management as an integral part on the
industrial system was recognised in 1984-85 though the generic
philosophy of workers participation in management was already a part of
the directive principle of state policy in the Constitution Article 43-A.
But workers participation in management had not made much impact in
india. In the meantime government of india began to introduce new
policy initiatives since early 1980's in terms of procedural and structural
reform in the industrial sector culminating in the new industrial policy of
1991 to make the indian industries attain international competetiveness,
sustained growth in productivity and efficiency. To facilitate the process
of restructuring the industrial sector, concomitant labour policy initiatives
directed towards amending the Trade Union Act and the Industrial
Disputes Act, were taken.
The focus of the research therefore, is on assesing the perception
of the participants whether the environment created by the new policy
packages would be conducive for the growth of workers' participation in
management and the participative culture. This chapter summarises the
problem of the study and its objectives, the methodology and major
findings. The implications for pollcy alternatives that emerge out of the
findings are then discussed as also the suggestions for areas of future
research.
The Concept
Participative management concept has been associated with differing
practices in real world situations, I t means different degrees and types
of involvement by workers in management, "mental and emotional
involvement in the affairs of the organistion" "Psychological concept of
Power-eqalizationu "tool for achieving greater organizational health and
effectiveness". Though different authors define the concept differently in
degrees, purposes and processes, the central Idea remains the same viz
that workers partlcipaion in management is concerned with increasing
employees' role En decision making or management of the enterprise.
6.1 .I Object of the Study
The objective of the study is to assess the economic, industrial
labour and organisational climate In the light of the reform policy
packages for participation, as perceived by the workers, management
personnel and trade union representatives, and to formulate a strategy
for effective implementation of the scheme of workers participation in
management.
6.1.2 Methodology
6.1.2.1 Sample
The twenty nine organisations implementing the scheme of workers
participation were stratified into public and private sector companies and
three from each were selected at random; at the first stage, from each
stratum a proportionate sample was randomly drawn. One hundred
workers, ten management personnel and ten trade unions were selected
on random basis. In all 600 workers, 60 management personnel and
60 trade union representatives were selected for primary data.
Information was collected on three basic domains viz policy domain,
structural domain and environmental domain.
With reference to the following statements the workers in the
public and private sectors differ in their perception as t o whether they
facilitate particpatory management or not.
1. Effective participation can be achieved by legislative compulsion.
2.' Effective participation can be achieved by voluntarism.
3. The Industrial Relations Bill is antilabour.
4. Government reform programmes enhance participation.
5. Privatisation will improve participation culture.
6. Transition from tripartism to bipartism improves participation.
7. Workers and management respect the rights 'and responsibilities
of each other.
8. Workers participate without fear of victimisation.
9. Workers have the propensity and competence to do fruitful par-
ticipation.
10. Participation through representatives creates communication prob-
lem.
11. Limited representation of outsiders in the union will enhance the
degree of role confirmity of the workers.
12. The scheme of workers participation is mere consultation without
commitment.
6.1.2.2 Tools
I t is a 26 items Likert type scale technique to score the
perceptionslattitudes of the participants.
6.1.2.3 Data Analysis.
For analysis of data summated ratings statistical were employed:
The following mean and standard deviation, coefficient of variation, chi
square tests.
6.1.2.4 Validity
Content and Construct validity were established.
6.1.2.5 Reliability
Test-retest technique was used to measure the reliability. The
reliability coefficient worked on was 0.92.
6.2 Summary of findings and conclusions:
The major findings of the study are summed up below:-
6.3 A model for development of a strategy for workers
Participation in management,
India is opening itself to the world in terms of trade and
technology as a result of new labour, economic and industrial policy
initiatives. The policy thrust aims at creating an abiding value of
pursuit of excellence to match the world class companies. I t aims to
develop a "work climate" in which the individuals find opportunity to be
more creative and to come up with ideas beneficial to the organisation,
to increase the degree of "we" feeling or cohesiveness; to provide the
workers with an overall organisational point of view; to reduce the
amount of conflict and hostility. A long run and mutual approach to
Competitiveness would warrant labour to accept the need for continued
improvement in the productivity and commitment to quality, expansion of
a sustained commitment to joint labour management activities, such as
training, quality improvement. work design, cost control and cost
effectiveness, and other related activities tailored to the specific needs
and competitive conditions of the enterprise concerned.
Based on the above emerging scenario and the findings of the
present study scenario a model of participative management is suggested
here below.
The following objectives of participative management are considered
in the model:
a) Harmonious and effective industrial relations to accomplish con-
structive relationships
b) Commitment to work and convergence of individual and organisa-
tional goals; abiding values of pursuit of excellence
c) Employees self development in terms of skills and career
d) Perspective of the economy industry and labour
e) A genuine concern for human values that can safeguard technol-
ogy making man a mere instrument of production
f) Work related and interest related issues
g) The inclusion of major subjects such as wages, norms of ef-
ficiency etc within the scope of joint consultative machinery
h) Adequate training of workers representatives.
T h e Model for workers participation in management is
diagramatically represented a s under
To facilitative operationalising the model, participation is essentially
considered as sharing of power, reflected in information sharing, equity
participation, consuitation, joint control and joint decision making and at
strategic levels representation of workers in the board. But basic to
all forms, level, content and representation is human resource
development through worker education, training and development for
worker, management and trade union representatives. Though the
Central Board for Workers Education (CBWE) is the nodal agency for
worker education, it should be upgraded into a centre for participative
management training and education and its curriculum should be
designed in collaboration with Work Education Departments of universities
and various recognised labour institutes, besides a few selected
industrial houses. This kind of university-industry-institutes interaction has
not been attempted to make HRD more purposeful as a starting point
for effective participation at different levels.
Participative management should provide equal importance to both
interest related issues and work related issues unlike as in the present
traditional industrial relations culture where workers, management and
unions are active in protecting the interests and are passively
participating in work related issues. To deal with the basic
interest-related issues such as wage structure, age differentials fringe
and other benefits, medical health, safety measures, education,
recruitment, and personnel policies, norms of discipline and dispute
resolution there can be three forums at
i) National-level council
ii) Enterprise level council
iii) Unit level council for work related issues.
There is no need for a National level set up. There has to be a
corporate . level council to deal with product mix, sales and export
strategy, expansion schemes, introduction of new technology and new
projects. At this level there will be information sharing, consultation,
joint decision making. The second tier will be the unit-level council
which will deal with:
i) Technical areas like planning, implementation, fulfilment of objec-
tives and review of monthly targets and schedules, material
supply, quality, storage and inventory, house keeping, suggestion
schemes, quality circles,(QC's),capacity utilisation, design, develop-
ment, process development, profit loss statement, balance sheet
etc.
ii) Economic areas such as incentives, cost effectiveness, value
analysis, methods improvement, budget, operating results revew,
plant performance in financial terms, labour and management
costs, market analysis, overtime problems of casual and tem-
porary labourers, women workers etc.
iii) Welfare areas such as medical benefits, safety measures,
transport facilities, sports and games, housing, education, training
career development, canteen, absenteeism, soci'al and cultural ac-
tivities etc.
Iv) Environmental areas such as pollution control, community
development projects, control of gambling, drinking and social
extravagance, development of ancillary units, sub contracting etc.
Shop Level Council
All matters which are significantly important for running successfully
a production concern or a unit in a commmercial/service organisation
will be included. Some issues will come under joint decision making
while other issues initially may become the subject matter of
consultation and information sharing.
The industrial relations environment in the country is undergoing a
period of major changes with accents chainging towards quality and
productivity improvements and competitive environment. The New
Industrial Relations Bill, Trade Union Act Amendments are awaited to
achieve the above objectives. In the circumstances the presence of a
reasonable degree of mutual understanding, goodwill on all sides
covering workers, management and trade unions becomes imperative.
The model outlined above has been worked out to move in this
direction.
Areas for Future Research
The centre of focus has to turn to education and traning and self
development of workers, management personnel and trade union leaders
and office bearers. The Central Board for workers education and its
regional directorates have been conducting training programmes and
catering to the educational needs of the workers. At the regional .level
the following courses are being conducted.
i) Workers teacher training course
ii) Leadership development course
iii) Unit level class/functional adult Literacy class
iv) Joint Labour-management programme
v) Participative management programme
vi) Need-based training programme
vii) Role of public sector in national development
viii) Quality of life
ix) Supervisory development
x) Changing role of trade unions
xi) Labour Legislations.
Though various modules have been designed these may have to be
updated in tune with the new economic policy, industrial and labour
policies. Since education, training and self development will form the
fulcrum for future development of the scheme of workers participation,
research may be conducted in redesigning the syllabus of the central
board of workers education to make it an effective instrument of
workers participation in management.
A study of Indian ethos and Indian values for organizational
excellence would help to evolve a positive work culture and work ethic
for effective workers participation in management. The following aspects
relating to participative management may also be studied
- Future role of trade unions and effective participative rnanage-
ment
- Dilution of public sector, employee morale and workers' par-
ticipation in management
- Propersity of employees to resist change
- Right work ethos, work ethic
- Effective organisations and workers participation management
Corporate goverance by censunsus - a decision making tool
for effective participation
Participation for excellence
Should personnel management combine the function of in-
dustrial relations for effective participation
Employees identification and organisations success
Workers and risk management
Role effectiveness through self awareness
Internalisation of organizational culture
Concept of scientific management and workers participation in
management
fostering work culture to improve productivity.
6.5 Conclusion
Studies conducted on workers participation in India have revealed
that most of the mechanism in operation is voluntary in character and
statutory mechanisms are largely dormant. 1Vork related issues are
mainly taken up through suggestion schemes, quality circles (QC) and
small group activities while interest related issues are taken up through
collective bargaining system. Consultative mechanism thrive in areas
where management is willing to share power. Centralised systems do not
nuture workers participation. Top managements commitment is also an
essential ingredient for participative climate. The New Economic Policy
(NEP) and the New Industrial Policy (NIP) were largely perceived by
workers as threats while management personnel perceived them as
being conducive for growth in productivity, excellence and progress and
hence would contribute to the promotion of participative management.
The issues which have got a great bearing, on the success of
workers participation in management, on the basis of the perception of
the participants, needs to be reviewed as labour is likely to resist the
changes- sought to be brought about, will only to worsen the already
troubled industrial relations situation. In order to motivate labour in a
greater effort and nourish the productivity culture, the management-labour
relations must be 'humanistic not paternalistic, communicative not
secretive, and cooperative not conflictual". Commitment and empowerment
feed on each other. Only committed employees can be aware of what
is happening in the company, its policies, values, philosphy. Only then
can they identify themselves with the organisation. The entire labour
policy needs to be reviewed on a priority basis as the trade union
might make the labour issue the biggest challenge to the reform
process.