Professional Documents
Culture Documents
“WORKERS PARTICIPATION IN
MANAGEMENT”
A dissertation submitted
for
MASTER OF PERSONNEL MANAGEMENT
Year 2010
Submitted By
RUMEE A.J SIDDIQUE
Under the guidance of
T A B A LE OF CONTENTS
Topic Page No
CHAPTER -A
1. EXECUTIVE SUMMARY
• Project Title
• Company Brief
• Objective of the Study
• Interpretation of the data in brief
• Limitation
• Observation and Findings
CHAPTER -B
2. COMPANY PROFILE
• Background of the Company
• History of the Company
• Major Branches/Units/Divisions
• Vision of the Company
• Mission of the company
• Consumers of the product/services
• Product/service profile
• Environment policy
• Safety policy
• Quality policy
CHAPTER -C
5. DATA ANALYSIS
• Display the data in a tabulation sheet
• Questions, graphs and interpretation – for each questions
6. OBSERVATIONS
7. FINDINGS
8. LIMITATIONS
9. RECOMMENDATIONS/SUGGESTIONS
10. CONCLUSIONS
11. BIBLIOGRAPHY
• Book Names ( CB Gupta “ Human Resource Management”)
• website
ACKNOWLEDGEMENT
The crux of problem is that there is a conflict of interest. It occurs from the side of
employers and employees too. Every employee, besides adequate wages and incentives
require satisfaction of physical needs, respect and recognition follow feeling and a
feeling of being esteemed by friends and other people in the groups.
Employers want to fulfill the objective of maximum profit, minimum input with
maximum output, better contribution from the employees end. The conflict of interest
can only be solved through effective labour-management participation in the industry.
Workers’ participation in management means sharing the decision making power by the
rank and file of an industrial organization through their representatives at all
appropriate level of management.
The company has four large-sized manufacturing plants in Western India & Northen
India with a total capability to supply nearly 30,000 tones of components and assemblies
a year.
With a range of presses - hydraulic and mechanical, single acting and double action - and
other required equipment of international standard, the plants have complete capabilities
for making complex sheet metal components of different sizes
The objective define is to study the WPM practices in the plant, to study the effectiveness
of bipartite forum in facilitating WPM, and to measure the effectiveness of WPM in
achieving harmonious Industrial Relations.
To achieve these objectives, the in-depth study of the workers participation practiced in
ASAL is done. Further the data was analyzed by the average comparison method & the
interpretation was made accordingly.
The interpretations found out through the data analysis helped to draw suitable findings.
The observations & findings of this project are based on the data analysis. It was
observed that Workers participation in management in ASAL is an effective system of
communication and consultation where workers express their opinion through their
representatives and contribute to the managerial decisions.
In is acting at each level of participation. One recognized trade unions i.e. BMS (Bharti
Mazdoor Sangh) affiliated to Engineer Kamgarsangh are the representatives of their
respective members in the process of participation.
On the basis of the observations & findings the recommendations were given include
management should develop a true spirit of mutual co-operation and commitment for
better participation on the part of labour. For better labour-management participation,
strong, enlightened and true representation of trade unions should be developed. Workers
should be given all types of freedom to get opportunity in the management decisions.
There should be an effective two-way flow of communication in the industry. There
should be a proper arrangement for workers and their representatives to provide
education and training in the process of participative management.
The scope of worker’s participation is very wide and significant. WPM covers not only
management contribution in decision making but also the mental and emotional involved
of worker’s in the decision making process. Worker’s participation is industries are done
at different levels like shop floor level plant level, department level, and corporate level.
In today’s scenario WPM is indispensable to ensure mutual understanding, higher
productivity, industrial harmony, creativity and innovation. Hence, the scope of the WPM
is vast and significant. The scope of the project cannot be made limited up to
organizational level, but also it has a wide range reaching out to employee’s personal life
also.
4. COMPANY PROFILE
Background and history of ASAL:-
Integrity
· All our actions and dealings should be capable of standing the test of public scrutiny
Responsibility
· Taking ownership for the consequences of our decisions and actions
Business Units
TACO
ASAL
TATA HENDRICKSON
TATA FICOSA
TATA GREEN BATTERIEE
TACO IPD(INDIAN PLASTIC DIVISION)
TACO SCM(SUPPLY CHAIN MANAGEMENT)
TACO MOBI APPS TELEMATICS LIMITED
TATA JOHNSONS CONTROL
TATA YAZAKI
TATA TOYO RADIATOR
Customers
1. Tata Motors Limited
2. Fiat India Limited
3. Piaggio Vehicles Private Limited
4. General Motors India Private Limited
5. Mahindra and Mahindra Limited
6. John Deere India Private Limited
7. Setco Automotive Ltd
8. John Deere – USA
9. Ford-UK
Product profile
ASAL is engaged in the supply of sheet metals components , welded assemblies and
modules for automobiles .The product range includes :
Finance Continuous
HR IT
Improvement
This policy will be communicated to all our employees and shall be made
available to public / stakeholders.
Trade Union
OSHE SITUATION AND AGENDA FOR TRADE UNIONS
2) At every level one office bearer is given task of OSHE. A person who is
entrusted with the work of OSHE has to plan programmes according to needs of nation
and area and direct affiliated units to implement such programmes throughout the year.
On National level on following days/weeks campaigns are launched to generate
safety awareness with a motive of reduction in Accidents.
1st to 7th January Road Safety
4th to 11th March National Safety Week
14th April Fire services Day
5th June World Environment Day
In addition to above 3rd December is celebrated as "No More Bhopal Day" in
some places.
b) National Safety Day - To ensure that safety and health are integrated in work
culture and life style. To renew the commitment of the employees towards
safety and health at workplace. To achieve greater participation of employees
in OSHE activities.
c) Fire Services Day - It is celebrated to know about fire fighting and
fundamentals of fire prevention and fire extinction.
d) World Environment Day - This is celebrated to raise environmental awareness
and mobilise action in different sectors of the society in order to improve the
quality of environment and life.
e) No More Bhopal Day - This day is celebrated to recapitulate dangers and ill
consequences of such type of accidents.
Workers’ participation in management means sharing the decision making power by the
rank and file of an industrial organization through their representatives at all appropriate
level of management.
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 in the responsibility of achieving then.”
Features of WPM
From the above definition the following feature of WPM can be identified:-
Participation means mental and emotional involvement rather then mere physical
presence. It is more than consent or approval to managerial action.
Workers participate in Management not as an individual but collectively as a group
through their representative.
Worker’s participation in management is based on the theory that a worker invests his
labour and ties his fate to his place of worker. Therefore, he has a legitimate right to
share in the determination of the company policy.
WPM may be formal or informal. In both the cases, it is a system of communication
and consultation where employees express their opinion and contribute to managerial
decision.
WPM should be distinguished from collective bargaining. The former is based on
mutual trust and information sharing. On the other hand, collective bargaining is
essentially based on power play and negotiation.
There can be four levels of participation – shop floor level, plant level, departmental
level, and corporate level.
There are four degrees of participation:-
Communication
Consultation
Co-determination
Self management
Objectives of WPM
Importance of WPM
Forms of WPM
Several methods have been suggested and tried for ensuring WPM. Some important
forms of WPM are as follows;
• Suggestion Scheme----- Under this system, workers are invited and encouraged to
offer Suggestion for improving the working of the enterprise. A suggestion box is
installed. Any workers can write his suggestion and put it into the box. Good
suggestions are accepted for implementation and suitable rewards are given to the
concerned workers.
• Works Committee----- under the Industrial Dispute Act 1947, every establishment
employing 100 or more workers is required to constitute a works Committee. Such
Committee consists of equal number of representatives of workers and management.
The main purpose of works committee is to provide measure for maintaining good
relations between the employers and employers.
• Worker Directors----- Under this method, one or two representatives of workers are
nominated or elected on the Board of Directors. This is a full-fledged and highest
form of WPM- in India. DCM and a few other Companies provide representation to
work on their Board of Directors.
• Co-partnership----- In this method, workers are made shareholders in the company
on which they are employed.
• Shop Council -----The main features of the shop council are as follows:-
There shall be a shop council for each department or shop whether a JMC already
exists or not.
Each shop council shall consist of equal number of representatives of employers and
workers. The employer’s representatives shall be nominated by the management and
must consist of persons from the unit concerned. All the representative of workmen
shall be from the workers engaged in the department.
The number of members of each council may be determined by the employer in the
consultation with the registered union.
All decisions of the shop council shall be on the basis of consensus and not by a
process of voting.
Every decision of a shop council shall be implemented by the parties concerned
within a period of one month.
Such decisions of a shop council which have a bearing on another shop or the under
taking as a whole will be referred to the JMC for consideration and decision.
A shop council, once formed, shall function for a period of 2 years.
The council shall meet at least once in a month.
• Joint Council----- The unit employing 500 or more workers has to be a joint council
for the whole unit. The main features of the council are as follows:-
Functions of Joint Council The Joint Council is to deal with the following matters:-
Employers have by and large resisted worker’s participation in decision making. They
feel that workers are not competent enough to take decision.
Lower level needs of workers are not fully satisfied. Therefore, majority of Indian
workers are not motivated enough to assume decision making responsibility.
Workers representatives who participate in management have to perform the dual role
of workers spokesman and co-managers. Very few representatives are competent
enough to assume the two incompatible roles.
Trade union leaders who represent workers are also active members of political
parties. They give priority to political interest rather than the interest of workers.
Lack of initiative on the part of both the employers and trade unions.
The focus has been on participation at higher levels. As a result, rank and file of
workers is not involved in decision making.
To sum up, following are the reasons for the unsuccessful participation:-
Employers should adopt a progressive outlook. They should consider industry a joint
endeavor in which workers have an equal say.
Strong, enlightened and truly representative trade union should be developed.
Employers and workers should agree on the objectives of the industry
Workers and their representatives should be provided education and training in the
process of participative Management.
A true spirit of mutual cooperation and commitment to participation must be
developed on the part of both Management and labour.
Participation should be a continuous process.
There must be sufficient time to participate before action is required.
Financial cost of participation.
The subject of the participation must be relevant.
Participant should have ability to interact and discuss.
Participant must be able to communicate.
The term WPM is a vast concept. In ASAL, the WPM is named as Joint Management
Council (JMC). On 31st Aug 2003 the Joint Management Council was constituted in
ASAL for a period of two years. After the election held on 27th Aug 2003 for recognition
of Trade Union in ASAL.
Status of JMC:
Joint Management Council has ten bipartite consultative Committees acting as a WPM in
the company. They are:
• Quality Circle
• Kaizen
DETAILS OF BIPARTITE CONSULTATIVE COMMITTEES IN ASAL
COMMITTEES CHAIRMAN MGT UNION TIME FRAME
1.Joint MD 4 2 Monthly
Management
Council
2.Safety HOD 4 2 Monthly
Committee
Composition
• There will be equal number of representatives from Mgt side and employees side
(represented by their representative bodies) each representative Union of ASAL Shall
have two members also.
• Quorum will comprise of minimum 02 members from management and 02 from
employees representatives side with both union represented.
• Head of Personnel (Works) will act as the convener of the committee and will be
responsible for calling of the meeting within the schedule time along with agenda
papers including production statistic, preparation and distribution of the minutes of
the meeting for placing the status position of any recommendation made in the next
meeting.
• The committee will meet at least once in a months and will start with a review of the
Minutes of the earlier meeting.
• Each of the ASAL. JMC Union will send nomination of 04 representatives out of
which 02 will attend the meeting. Meeting notice will be sent to all 04 representatives
of each ASAL. JMC Union with stipulation that only two should attend.
• Meeting day attendance will be given to 02 members from each of the participating
JMC Unions, on request by members to the convener.
Composition
• There will be equal number of representatives from Mgt side and employees side
(represented by their representative bodies) each representative Union of ASAL Shall
have two members also.
• Quorum will comprise of minimum 02 members from management and 02 from
employees representatives side with both union represented.
• Head of Safety Department will act as the convener of the committee and will be
responsible for calling of the meeting within the schedule time along with agenda
papers including production statistic, preparation and
• Distribution of the minutes of the meeting for placing the status position of any
recommendation made in the next meeting.
CANTEEN CONSULTATIVE COMMITTEE
Composition
• There will be equal number of representatives from Mgt side and employees side
(represented by their representative bodies) each representative Union of ASAL Shall
have two members also.
• Quorum will comprise of minimum 02 members from management and 02 from
employees representatives side with both union represented.
QUALITY CIRCLES
An organisation may identify 4-5 different areas which require continuous monitoring
and improvement. Each area may be allocated to a group (form from members of the
organisation) which is called Quality Circle 1, 2, 3 etc, depending on the number of areas
identified. The Quality Circles should have a common objective of working for the
success of their project in the area being allocated to them. These areas may be called
Kaizen activities. Membership of each QC is on a voluntary basis.
• Employees take part in open forums .Every month open forum is conduct for the
workers.
• Employees are given an opportunity to participate in the open forum.
• About the profits and on various issues are discussed in the open forum.
• Gifts are given in open forum whose birthday is their in the same month.
• Gifts and rewards are also given for the kaizen.
KAIZEN AND GEMBA KAIZEN
This calls for a well planned research methodology so that the problems areas could be
sell identified and the cause if any, be known and solved. This research in particular
carried at Automotive Stampings and Assemblies Limited on the workers participation in
management, is certainly no exception to the golden rule.
In order to find out how effective the personnel and administration department is in
carrying out the basic function of workers participation in management, this particular
research was undertaken.
The methodology involves usage of both primary as well secondary data. Primary data
includes, Questionnaires, personnel interviews, and general observation on the whole.
Whereas secondary data includes. reference to various records such as company data
base, company documents, magazines, journals, world wide web.
50 sample size was taken for the study of the total population.
Data Analysis
Data based on questionnaire is analyzed from the responses of the employees and is
graphically represented. Pie charts, Bar graphs, Line graphs are used for presentation.
Data Interpretation
Average is used for drawing the inference and interpretation of the data.
8. DATA ANALYSIS AND
INTERPRETATION
1. Does management share information on the goals and on various issues of the
organization?
ANALYSIS
68% the total sample size have accepted that management share information on goals and
on various issues of the industry. However 20% of the sample size have expressed that
they get information up to some extent .12% workmen have expressed that they do not
get any information on goals and on various issues of the industry.
70
60
50
40
30
% of responses
20
10
0
YES NO TO
SOME
EXTENT
2. Are you satisfied with your working condition at your working place like ventilation,
temperature, lighting, hygiene, sanitation?
ANALYSIS
About 20% employees have accepted that they are satisfied with their working
environment. 50% of the employees have regretted that they are not satisfied with their
working environment and they want some changes in their working place. However, 30%
employees have expressed that they are not much satisfied with their working
environment.
About 30% employees have accepted that they are satisfied with their welfare facilities.
36% of the employees have regretted that they are not satisfied with the welfare facilities.
However, 34% employees have expressed that they are satisfied up to some extent with
their welfare facilities.
4. Are you satisfied with the decision made by the union and management on terms of
wages, welfare facilities like transportation, canteen, medical?
ANALYSIS
About 40% employees have accepted that they are satisfied with the decision made by the
union and management on terms of wages, welfare facilities like transportation, canteen,
medical.36% of the employees have regretted that they are not satisfied with the decision
of the management because they are not doing anything for the workmen demands the
management is selfish they are just for the benefit of the company they don’t listen to the
demands of the workmen. However, 24% employees are satisfied just up to some extent.
40
35
30
25
%OF RESPONSES
20
15
10
0
YES NO TO SOME EXTENT
From the graph, it is noted that 34% of the employees believe that the participation in the
decision making process satisfies their demands and interests. About 36% of the
employees have negatively responded. 30% of the employees are satisfied up to some
extent.
6.. Do you think that all the bipartite consultative committees satisfy your demands?
ANALYSIS
It is understood from the graph that about 62% of the employees believe that all the
bipartite consultative committees satisfy their demands. Around 22% of the sample has
responded negatively. 32% employees have not committed anything.
% Of Responses
Y ES 62%
NO 22%
TO SOME EXTENT 16%
Out of total employees answered, 48% of them assure that management make adequate
team for doing work. 20% says that the management does not make any team for doing
any work. While 32% have expressed that management do make teams for doing work.
We can observe from the graph that 38% of the employees get opportunity in
participating in the events of the industry. 34% employees viewed that they do not get
chance to participate and the management is not arranging any sports for them. 28%
workmen are saying that they participate up to some extent.
9. Do you think that WPM helps in maintaining industrial peace and harmony in the
industry?
ANALYSIS
82% the total sample size have accepted that worker’s participation practices in the
industry help to maintain industrial peace and harmony. However, 10% of the sample
size have expressed that WPM fails to ensure industrial peace and security in the
industry. 8% employees have expressed that WPM helps in maintaining peace and
harmony just up to some limit.
90
10. Do you think that WPM is useful for increasing the productivity of the industry?
ANALYSIS
80
It is observed from the graphic representation that about 60% employees agree that WPM
is useful for increasing the productivity of the industry. 2% employees are dissatisfied
with the statement.38% employees have not committed that up to some extent the
productivity increases of the industry.
11.Are you aware about the policies like safety, health, leave, climate change policy?
ANALYSIS
Answers represented in the graph indicate that 46% of the employees agree that they are
aware about the policies of the industry.28% are not aware about any of the policies of
the industry. While 26% of the employees are aware about some policies and about some
policies they are not aware of it.
ANALYSIS
We can observe from the graph that 50% of the employees get opportunity to express
them in the process of participation. 40% employees viewed that they do not get chance
to express their grievances and problems in the process of participation. 10% have
expresses that they get opportunity to participate to some extent.
13.Are you aware about the suggestion box, quality circle, kaizen, cost saving, process
improvement projects?
ANALYSIS
We can observe from the graph that 70% of the employees are aware about the
suggestion box, quality circle, kaizen, cost saving, process improvement projects? 12%
employees viewed that they are not aware.18% have said that they are aware to some
extent..
14.Are you getting an opportunity of implementing the quality circle, kaizen, cost saving
projects, process improvement projects?
ANALYSIS
80% of the employees have accepted that they are getting opportunity in the organization
for implementing the kaizen, cost saving projects, process improvement projects.
However, 10% of the employees are not getting opportunity of implementing the above
projects. 10% of the employees get opportunity of implementing the projects to some
extent.
YES 80%
NO 10%
TO SOME EXTENT 10%
15. Do you get any support from management for your individual development?
ANALYSIS
Out of total employees answered, 15% of them assure that they get support from
management for their individual development. While 75% have expressed that
management do not support for their individual development, employees state that
management does not do any activity for their individual development. 5% employees
says that they get support from management to some extent.
YES 15%
NO 75%
TO SOME EXTENT 5%
16. Do you get any rewards for participating in the activities of the company?
ANALYSIS
Out of total employees answered, 34% of them assure that they get rewards for
participating in the events of the company. While 52% have expressed that management
does not give any rewards for participating in the events of the industry. 14% employees
says that they get rewards from management to some extent.
GRAPHICAL REPRESENTATION OF THE DATA
ANALYSIS
It is observed from the graphic representation that about 26% employees agree that they
get off-the-job training for their enhancement. While 74% of employees says that they do
not get any type of training for their development.
% Of Responses
ON-THE-J OB
0%
OFF-THE-
J OB 26%
NO TRAINING
74%
18.Are you satisfied with training program which you get ?
ANALYSIS
It is observed that 6% of employees are satisfied with the training program. 80%
employees agree that they do not get any training program that they can be satisfied.
While 14% of employees says that they are satisfied with training program to some
extent.
Out of total employees answered, 10% of them assure that management communicates
with them through notices. While 44% have expressed that management communicates
with them through open forums.10% of employees answered that management speaks
through meetings. 36% employees have said that management communicates with them
through all the above means of communication.
60
40
20
0
e
m
tic
ru
No
gs
e
fo
tin
ov
% Of
n
ee
ab
pe
Responses
M
O
he
n
lt
tio
Al
ica
un
m
m
Co
ANALYSIS
Out of total employees 24% of them assure that they are satisfied with the method of
communication. While 46% have expressed that management do not provide any
information to them while taking any decision in committee meetings. 30% employees
are satisfied up to some extent.
50
40
30
20 % of responses
10
0
YES NO TO SOME
EXTENT
21. In your opinion, bipartite forum should discuss and reach a consensus on the referred
issues within how much time?
ANALYSIS
Out of the total sample size, 36% of the employees have expressed their views that the
bipartite forum should discuss and reach a consensus on the referred issues immediately.
However, 22% employees require that the consensus to be reached within a month. 16%
demands in the three months. About 26% of the employees have connotation that no
time frame is required to take decision in the committee meetings.
22.Do you think that participative of the union and management helps in
• Quality Product
• Delivery Time
• Reducing Accidents
• Achieving the strategic goals of the company
ANALYSIS
Answers represented in the graph indicate that 20% of the employees agree that the
participation of the union and management helps in giving quality products.2% are telling
delivery time.6% are agree that union and management helps in reducing accidents.
While 72% agree with the statement that participation of union and management helps in
achieving the strategic goals of the company.
ANALYSIS
Out of the total sample size, 5% of the employees rate that the employer-employee
relationship in the company is very good. 50% employees have rated the industrial
relations as ‘Average’ in the industry. 40% employees have rated as ‘Poor’. While 5%
employees are dissatisfied with the relationship in the industry since they think the
relation is very poor.
50
40
30
20
10
0
% Of Responses
nt
d
lle
oo
e
ag
ce
or
G
Po
or
ex
er
ry
Av
Po
Ve
ry
Ve
In ASAL, the Joint Management council is acting at each level of participation. One
recognized trade unions Bharatiya Mazdoor Sangh.
There are ten bipartite consultative committees acting as WPM in the company.
These committees help to ensure better labour-management participation in the plant.
10. LIMITATIONS
Time constraint is the major limitation for the study of the project. It has consumed a
lot of time specially in collecting the primary data.
11. RECOMMENDATIONS/SUGGESTIONS
Workers should be given all types of freedom to get opportunity in the management
decisions. There should be an effective two-way flow of communication in the
industry.
There should be a proper arrangement for workers and their representatives to provide
education and training in the process of participative management.
Management should conduct open forum twice a month so that every workers gets an
opportunity to participate in the open forum.
12. CONCLUSION
In the concluding part, it can be said that workers’ participation in management in ASAL
is effective to some extent in facilitating better participation of labour in the decision-
making process of the Organization. The Bipartite consultative committees available in
the industry should consider industry a joint endeavor in which each and every worker
have an equal chance to speak.
The management and the trade union should come forward for increasing the
productivity of labour by improving co-operation between employer and employees.
Productivity is sought to be increased only by improving job satisfaction and industrial
relations in the industry. Creative methods and measures should be developed for
ensuring workers participation in management in the industry. The scope and functions of
Joint Management council should be extended. It should assist management in ensuring
production target by ensuring better participation from the worker’s side.