WORKER’S WORKER’S EMPOWERMENT AND EMPOWERMENT AND

PARTICIPATION IN PARTICIPATION IN MANAGEMENTMANAGEMENT

WORKER’S EMPOWERMENTWORKER’S EMPOWERMENT

¶ Empowerment means encouraging and allowing individuals to take personal responsibility for improving the way they do their jobs and contribute to the organisation’s goals.

¶ It requires the creation of culture which would encourage people at all levels to feel that they can make a difference and also help them to acquire the confidence and skills to do so.

WORKER’S EMPOWERMENTWORKER’S EMPOWERMENT

¶ The famous example of empowerment is The famous example of empowerment is Total Quality ManagementTotal Quality Management which is an which is an employee driven process for ensuring best employee driven process for ensuring best possible quality products and services for possible quality products and services for the satisfaction of customers.the satisfaction of customers.

¶ TQM empowers employees at all levels in TQM empowers employees at all levels in order to tap their full creativity, motivation order to tap their full creativity, motivation and commitment.and commitment.

¶ The other practices which encourage The other practices which encourage employee involvement include suggestion employee involvement include suggestion system, job enlargement, job enrichment, system, job enlargement, job enrichment, quality circle, participative leadership, self-quality circle, participative leadership, self-managed team etc.managed team etc.

INDUSTRIAL DEMOCRACYINDUSTRIAL DEMOCRACY

MEANING:MEANING:

¶ It means the application of democratic principles in It means the application of democratic principles in managing industrial units. managing industrial units.

¶ In industrial democracy, workers are treated as responsible In industrial democracy, workers are treated as responsible partners of an enterprise and are allowed to participate in partners of an enterprise and are allowed to participate in the decision-making process. the decision-making process.

¶ Workers are given the right of self-expression and an Workers are given the right of self-expression and an opportunity to communicate their own views on framing the opportunity to communicate their own views on framing the policies of the company.policies of the company.

WORKER’S PARTICIPATIONWORKER’S PARTICIPATION¶ . There are two distinct groups of people in an . There are two distinct groups of people in an

undertaking:undertaking:

¶ ManagersManagers performing managerial functions performing managerial functions

¶ WorkersWorkers performing operative functions the basic performing operative functions the basic distinction between those who occupy managerial distinction between those who occupy managerial positions and workers is that managers are held positions and workers is that managers are held responsible for the work of their subordinates responsible for the work of their subordinates while workers are accountable only for their own while workers are accountable only for their own work.work.

WORKER’S PARTICIPATIONWORKER’S PARTICIPATION

¶ Participation may be defined as taking part in Participation may be defined as taking part in sharing of power and statussharing of power and status between the between the managers and the workers. managers and the workers.

¶ Workers’ participation in management seeks to Workers’ participation in management seeks to bridge this gap authorising workers to take part bridge this gap authorising workers to take part in the managerial process.in the managerial process.

¶ Thus, workers’ participation in management Thus, workers’ participation in management means giving scope for workers to influence the means giving scope for workers to influence the managerial decision making process at different managerial decision making process at different levels by various forms in the organisation.levels by various forms in the organisation.

OBJECTIVES OF WORKERS’ PARTICIPATIONOBJECTIVES OF WORKERS’ PARTICIPATION

¶ Increasing productivity for the general benefit of Increasing productivity for the general benefit of the enterprise, the employees and the community.the enterprise, the employees and the community.

¶ Giving employees a better understanding of their Giving employees a better understanding of their role. role.

¶ Satisfying the worker’s urge for self-expression.Satisfying the worker’s urge for self-expression.

¶ Achieving industrial peace, better relations and Achieving industrial peace, better relations and increased co-operation in industry.increased co-operation in industry.

¶ Development of human personality.Development of human personality.

¶ Development of leaders from within the industry.Development of leaders from within the industry.

FORMS OF WORKERS’ PARTICIPATIONFORMS OF WORKERS’ PARTICIPATION

¶ Ascending participation :Ascending participation : In this case, the In this case, the workers may be given an opportunity to influence workers may be given an opportunity to influence managerial decisions at higher levels through managerial decisions at higher levels through elected representatives to joint councils or the elected representatives to joint councils or the board of directors of the company.board of directors of the company.

¶ Descending participation :Descending participation : In this case, they may In this case, they may be given more power to plan and to make be given more power to plan and to make decisions about their own work (e.g. delegation decisions about their own work (e.g. delegation and job enlargement). This form of participation and job enlargement). This form of participation is quite popular in many organisations.is quite popular in many organisations.

NATURE OF WORKERS’ NATURE OF WORKERS’ PARTICIPATIONPARTICIPATION

THREE SCHOOLS OF THOUGHT:THREE SCHOOLS OF THOUGHT:

¶ Influencing through information sharing:Influencing through information sharing: It looks at It looks at participation as a process of decision-making in participation as a process of decision-making in which subordinates are allowed to have a ‘say’ or ‘to which subordinates are allowed to have a ‘say’ or ‘to influence’ the decision-making.influence’ the decision-making.

¶ Joint decision-making:Joint decision-making: It views participation as It views participation as actual decision-making by the workers and not actual decision-making by the workers and not merely having a ‘say’ in it or influencing it.merely having a ‘say’ in it or influencing it.

¶ Self-control:Self-control: It implies a process in which the It implies a process in which the workers exercise control on the mechanism of workers exercise control on the mechanism of decision-making as full- fleged and active members.decision-making as full- fleged and active members.

MODES OF PARTICIPATIONMODES OF PARTICIPATION

¶ WORKS COMMITTEE:WORKS COMMITTEE: It consists of equal It consists of equal number of representatives of both number of representatives of both employers and workers. It meets employers and workers. It meets frequently for discussion on common frequently for discussion on common problems of the workers and the problems of the workers and the management. After discussion, joint management. After discussion, joint decisions are taken and such decisions are decisions are taken and such decisions are binding on both the parties. Matters like binding on both the parties. Matters like wage payment, bonus, training, discipline wage payment, bonus, training, discipline etc are discussed in such meetings.etc are discussed in such meetings.

MODES OF PARTICIPATIONMODES OF PARTICIPATION¶ JOINT MANAGEMENT COUNCIL:JOINT MANAGEMENT COUNCIL: It It

involves setting up of joint committees involves setting up of joint committees represented by the workers and the represented by the workers and the management to discuss and give management to discuss and give suggestions for improvement with suggestions for improvement with regard to matters of mutual interest. regard to matters of mutual interest. The decisions of such committees are The decisions of such committees are not binding on either party, yet they not binding on either party, yet they are implemented as they are arrived at are implemented as they are arrived at by mutual consultations. The subject-by mutual consultations. The subject-matter of joint consultations includes matter of joint consultations includes such problem areas as labour welfare, such problem areas as labour welfare, safety measures, grievance redressal, safety measures, grievance redressal, training, working hours, etc. training, working hours, etc.

¶ COLLECTIVE BARGAINING:COLLECTIVE BARGAINING: It is an industrial relations It is an industrial relations process in which employees through their elected leaders, process in which employees through their elected leaders, participate on equal basis with management in negotiating participate on equal basis with management in negotiating labour agreements, in administering the agreements, and labour agreements, in administering the agreements, and in redressing grievances of the workers.in redressing grievances of the workers.

¶ CO-PARTNERSHIP:CO-PARTNERSHIP: In this, workers are allowed to purchase In this, workers are allowed to purchase shares of the company and thus become its co-owners. In shares of the company and thus become its co-owners. In this way, they can participate in the management of the this way, they can participate in the management of the company through their elected representatives on the company through their elected representatives on the Board of Directors. As shareholders, the workers can also Board of Directors. As shareholders, the workers can also attend general meetings of shareholders and exercise their attend general meetings of shareholders and exercise their voting rights.voting rights.

¶ WORKER-DIRECTOR: WORKER-DIRECTOR: In this, a workers’ representative is In this, a workers’ representative is being given a seat on the board of directors. In countries being given a seat on the board of directors. In countries where the trade unions are very strong as in Britain and where the trade unions are very strong as in Britain and U.S.A., the trade unions definitely reject the idea. A worker-U.S.A., the trade unions definitely reject the idea. A worker-director would be in minority and thus his views would director would be in minority and thus his views would carry little weight with the board. Since the worker-director carry little weight with the board. Since the worker-director is the representative of a trade union, he will always take a is the representative of a trade union, he will always take a biased for the benefit of workers. He may overlook the biased for the benefit of workers. He may overlook the interests of the organistaion which has certain obligations interests of the organistaion which has certain obligations towards the society.towards the society.

¶ SUGGESTION SCHEME:SUGGESTION SCHEME: Under this scheme, Under this scheme, the workers are encouraged to give their the workers are encouraged to give their suggestions to the management on various suggestions to the management on various administrative matters, and their suggestions administrative matters, and their suggestions are considered carefully and accepted, if found are considered carefully and accepted, if found suitable. In addition, rewards are also given to suitable. In addition, rewards are also given to those who make constructive suggestions.those who make constructive suggestions.

¶ GRIEVANCE PROCEDURE:GRIEVANCE PROCEDURE: It provides an It provides an opportunity to workers to participate in opportunity to workers to participate in decisions on matters affecting their interests. decisions on matters affecting their interests. The Model Grievance Procedure evolved by the The Model Grievance Procedure evolved by the 1515thth Indian Labour Conference has a three-tier Indian Labour Conference has a three-tier system for settlement of grievance at the level system for settlement of grievance at the level of : a) the immediate supervisor, b) of : a) the immediate supervisor, b) departmental head and c) a bipartite departmental head and c) a bipartite grievance committee representing the grievance committee representing the management and the union.management and the union.

¶ QUALITY CIRCLE:QUALITY CIRCLE: It is a unique concept which It is a unique concept which provides for voluntary participation by the provides for voluntary participation by the workers in the direction of quality workers in the direction of quality improvement and self-development.improvement and self-development.

WORKERS PARTICIPATION IN WORKERS PARTICIPATION IN MANAGEMENT IN INDIAMANAGEMENT IN INDIA

WORKS COMMITTEESWORKS COMMITTEES¶ The industrial disputes act, 1947, provides for the The industrial disputes act, 1947, provides for the

setting up of works committee consisting of setting up of works committee consisting of representatives of management and employing representatives of management and employing 100 or more workmen.100 or more workmen.

FUNCTIONS:FUNCTIONS:¶ Conditions of work such as ventilation, lighting, Conditions of work such as ventilation, lighting,

temperature and sanitation.temperature and sanitation.¶ AmenitiesAmenities such as drinking water, canteen, dining such as drinking water, canteen, dining

rooms, crèches, rest rooms, medical and health rooms, crèches, rest rooms, medical and health servicesservices

¶ Safety and accident prevention, occupational Safety and accident prevention, occupational diseases and protective equipment.diseases and protective equipment.

¶ Adjustment of festivals and Adjustment of festivals and national holidays.national holidays.¶ Administration of welfare funds.Administration of welfare funds.

¶ Educational and recreational activitiesEducational and recreational activities, such , such as libraries, reading rooms, cinema-shows, as libraries, reading rooms, cinema-shows, sports, games, community welfare and sports, games, community welfare and celebrations.celebrations.

¶ Promoting thrift and savings.Promoting thrift and savings.¶ Implementation and review of decisions Implementation and review of decisions

arrived at meeting of works committees.arrived at meeting of works committees. The national commission on labour (1969) The national commission on labour (1969)

pointed out that the effectiveness of the pointed out that the effectiveness of the works committees depends upon the following works committees depends upon the following factors:factors:

¶ A more responsive attitude on the part of the A more responsive attitude on the part of the management.management.

¶ Adequate support from the unions.Adequate support from the unions.¶ Proper appreciation of the scope and Proper appreciation of the scope and

functions of the works committees.functions of the works committees.¶ Whole-hearted implementation of the Whole-hearted implementation of the

recommendations of the works committees.recommendations of the works committees.¶ Proper co-ordination of the functions of the Proper co-ordination of the functions of the

multiple institutions at the plant.multiple institutions at the plant.

JOINT MANAGEMENT COUNCILJOINT MANAGEMENT COUNCIL¶ JMCs represent a higher form of workers JMCs represent a higher form of workers

participation in management. The aim is to change participation in management. The aim is to change the social structure of enterprises from inside. They the social structure of enterprises from inside. They lead the private sector to fit into the framework of lead the private sector to fit into the framework of socialist order – the idea that socialist order should socialist order – the idea that socialist order should be achieved by gradual and peaceful changes.be achieved by gradual and peaceful changes.

AN UNDERTAKING MUST MEET THE FOLLOWING AN UNDERTAKING MUST MEET THE FOLLOWING REQUIREMENTS FOR SETTING UP JMCS:REQUIREMENTS FOR SETTING UP JMCS:

¶ It must have 500 or more employees.It must have 500 or more employees.¶ It should have a fair record of industrial relations.It should have a fair record of industrial relations.¶ It should have a strong and well organised trade It should have a strong and well organised trade

union.union.¶ Willingness of employers, workers and trade unions.Willingness of employers, workers and trade unions.¶ Private employers ought to be members of the Private employers ought to be members of the

leading employers organisation.leading employers organisation.¶ The union should be affiliated to one of the central The union should be affiliated to one of the central

federations.federations.

FEATURES OR FUNCTIONS:FEATURES OR FUNCTIONS: The JMC should be consulted by the The JMC should be consulted by the

management on the matters such as:management on the matters such as:¶ RetrenchmentRetrenchment¶ Closure, reduction in or cessation of Closure, reduction in or cessation of

operationoperation The council would also have to receive The council would also have to receive

information to discuss and to give information to discuss and to give suggestions on:suggestions on:

¶ General economic situation of the concern.General economic situation of the concern.¶ The state of market, production and sales The state of market, production and sales

programmes.programmes.¶ Organisation and general running of the Organisation and general running of the

undertaking.undertaking.¶ The annual balance sheet and profit and The annual balance sheet and profit and

loss account statement and connected loss account statement and connected documents with explanations.documents with explanations.

¶ Long term plan for expansion, re-Long term plan for expansion, re-development etc.development etc.

The council would be entrusted with The council would be entrusted with administrative responsibility in respect of:administrative responsibility in respect of:

¶ Administration of welfare measures.Administration of welfare measures.¶ Supervision of safety measures.Supervision of safety measures.¶ Operation of vocational training and Operation of vocational training and

apprenticeship schemes.apprenticeship schemes.¶ Preparation of schedules of working hours and Preparation of schedules of working hours and

breaks of holidays.breaks of holidays.¶ Payment of reward for valuable suggestions Payment of reward for valuable suggestions

received from the employers.received from the employers.¶ All matters, such as, wages, bonus etc, which are All matters, such as, wages, bonus etc, which are

subjects for collective bargaining are excluded subjects for collective bargaining are excluded from the scope of the council. Individual from the scope of the council. Individual grievances are also excluded from its scope.grievances are also excluded from its scope.

WORKER DIRECTORSWORKER DIRECTORS¶ The idea of worker-directors has gained some The idea of worker-directors has gained some

support in India, particularly in public sector support in India, particularly in public sector undertakings and nationalised organisations. this undertakings and nationalised organisations. this arrangement, however, is far from being common. arrangement, however, is far from being common. The few undertakings where it has been The few undertakings where it has been implemented are the Hindustan Aeronauticals implemented are the Hindustan Aeronauticals and 14 nationalised banks.and 14 nationalised banks.

SHOP COUNCILSSHOP COUNCILS¶ The scheme was introduced as a part of the 20 The scheme was introduced as a part of the 20

point programme during the period of emergency.point programme during the period of emergency. FUNCTIONS:FUNCTIONS:¶ Assist management in achieving monthly/yearly Assist management in achieving monthly/yearly

targets.targets.¶ Improvement Improvement of production, productivity and of production, productivity and

efficiency, including elimination of wastage and efficiency, including elimination of wastage and optimum utilisation of machine capacity and optimum utilisation of machine capacity and manpower.manpower.

¶ Specifically identify areas of low productivity and Specifically identify areas of low productivity and take necessary take necessary corrective stepscorrective steps at shop level. at shop level.

¶ To study To study absenteeismabsenteeism in the shop/department and in the shop/department and recommend steps to rectify the situation.recommend steps to rectify the situation.

¶ SafetySafety measures. measures.¶ Assist in maintaining general Assist in maintaining general disciplinediscipline in the in the

shop/department.shop/department.¶ Physical conditionsPhysical conditions of working, such as, lighting, of working, such as, lighting,

ventilation, noise, dust etc and reduction of ventilation, noise, dust etc and reduction of fatigue.fatigue.

¶ Welfare and health measuresWelfare and health measures to be adopted for to be adopted for efficient running of the shop/departmentefficient running of the shop/department

¶ Ensure proper flow of adequate two-way Ensure proper flow of adequate two-way communicationcommunication between the management and the between the management and the workers, particularly on matters relating to workers, particularly on matters relating to production figures, production schedules and production figures, production schedules and progress in achieving the targets.progress in achieving the targets.

REQUIREMENTS OF SUCCESSFUL REQUIREMENTS OF SUCCESSFUL WORKER’S PARTICIPATIONWORKER’S PARTICIPATION

¶ The The attitude of the managementattitude of the management must be broad, must be broad, progressive and democratic. It must be willing to progressive and democratic. It must be willing to associate workers and discuss the problems freely associate workers and discuss the problems freely with them.with them.

¶ The workers must have a The workers must have a strong trade unionstrong trade union with with enlightened leadership. They must have enlightened leadership. They must have willingnesswillingness to participate in the management of to participate in the management of the enterprise.the enterprise.

¶ Management and workers must understand Management and workers must understand clearly the clearly the objectivesobjectives of such participation. of such participation. Management should not take it as an imposed Management should not take it as an imposed liability and workers should not use it for liability and workers should not use it for expressing their grievances and demands only.expressing their grievances and demands only.

¶ Existence of atmosphere of trust, faith, Existence of atmosphere of trust, faith, confidence and recognition is a must. There must confidence and recognition is a must. There must be a be a genuine desiregenuine desire on the part of management on the part of management and workers to understand each other to arrive at and workers to understand each other to arrive at decisions acceptable to both the parties.decisions acceptable to both the parties.

¶ Labour - management relationsLabour - management relations should be cordial should be cordial or atleast there should be no tension in the or atleast there should be no tension in the relations. There should be no blockage in relations. There should be no blockage in communication between them.communication between them.

¶ For successful participation, it is necessary that For successful participation, it is necessary that employees are sufficiently informed about employees are sufficiently informed about participation programme and they are given participation programme and they are given proper trainingproper training in the field. They must be taught in the field. They must be taught just what is expected of them and how they are just what is expected of them and how they are expected to perform.expected to perform.