CHAPTER SIX : WORKERS PARTICIPATION IN MANAGEMENT

CONCEPT:
For higher productivity and sound industrial relations, it is extremely important to give
the workers the place of partners in industry. The workers must be increasingly associated
with the management of industrial undertakings so that they develop an awareness of the
problems of industry and begin to feel that they have a positive contribution to make to
the operation of their units. Such association with management should gradually give
place to labour participation in management. The principle of participation seeks to meet
the psychological needs of the workers, brings them closer to the management, promotes
their interest in self education, gives them an insight into the economic and technical
conditions and the purposes of the undertaking where they work, and serves to bridge the
gulf between the management and the workers. For the peaceful evolution of the
economic system on a democratic basis, it is essential that workers participation in
management should be accepted as a fundamental principle and an urgent need.
PURPOSE:
The purposes of employee participation as defined by marchington et al are as follows;
a. Articulation of individual dissatisfaction:- to rectify a problem with management
or prevent deterioration of relations.
b. Expression of collective organization;- to provide a countervailing source of
power to management.
c. Contribution to management decision making- to seek improvements in work
organization, quality and productivity.
d. Demonstration of mutuality and co operative relations- to achieve long term
viability for the organization and its employees.
SIGNIFICANCE:
FORMS OF PARTICIPATION:
Several methods have been suggested and tried for securing the goal of
employees participation in management. Some of the major forms of participation are co
ownership, suggestion schemes, joint consultation, employees representation in the BOD
information sharing association of workers etc.
1. Information sharing
Workers can be participated in the management as the representatives of the
labour force in issues related to day to day affairs or in emergency situations.
Suggestions may be sought from them regarding the solution of critical issues.
They may also be participated as co partners. Co partnership makes the workers
share holders in the company for which they are working. They can acquire
information regarding internal management. They may also be able to elect the
representatives to voice their attitudes.
2. consultation
participation becomes a part of information gathering if the members of the
different sectors are consulted. Joint consultation involves the setting up of joint
committees comprising the representatives of management and workers to discuss
various matters concerning working conditions of the workers. The decisions of
such committees are usually advisory in character though the management will

have little reason to reject the advice because it is the outcome of deliberations
between the representatives of the management and labour.
The chief objective of joint consultation through committees of various kinds is to
weld the work people and the management into a team. If this object is achieved
,it will open the way to higher morale, greater out put and increased productivity,
sound and cordial relations, and a stimulating exchange of ideas and information
on both sides.
3. association of workersTrade unions):
4. Joint decision making and BOD.
Employee representation in the board of directors is also an important scheme of
achieving the goal of participation. The full fledged participation of of workers in
management can be ensured only through their participation in the chief organs
of management. In long run , workers would be satisfied with nothing but of their
representation in the body responsible to managing the affairs of the concern in all
aspects i.e. the board of directors. Though it is facing heavy controversy and
criticism, the practice of allowing workers representatives to sit on the BOD has
been adopted in several countries. Many management scientists believe that the
inclusion of workers in the BOD creates an understanding of the problems. But it
must be admitted that mere inclusion would not solve the problem. Such
association should begin from the bottom and extend to the top both of the
undertaking and industry.
SCENARIO OF WORKERS PARTICIPATION IN MANAGEMENT IN NEPAL
PROBLEMS, PROSPECTS, LEGAL PROVISIONS AND PRESENT STATUS.