WCkkLkS' Ak1ICIA1ICN IN MANAGLMLN1

(I) (|) Introduct|on

Worker's parLlclpaLlon ls a sysLem where and managemenL share lmporLanL lnformaLlon wlLh each
oLher and parLlclpaLe ln declslon Laklng lL ls dlsLrlbuLlon of soclal power ln lndusLry so LhaL lL Lends Lo
beshared among all who are engaged ln Lhe work raLher Lhan concenLraLed ln Lhe hands of
mlnorlLy1hlnkers llke ComLe and Cwen advocaLed Lhe parLlclpaLlon of workers ln managemenL for
achlevlngdlsLrlbuLlve soclal [usLlce karl Marx proposed compleLe conLrol of Lhe enLerprlse by workers
andsoclallzaLlon of Lhe means of Lhe producLlon Marx wanLed Lrade unlons Lo be developed as
analLernaLlve for selfgovernmenL 1hlnkers favored gullds of all classes of workers should be
conLrolledunder a charLer from Lhe sLaLe WlLh Lhe ouLbreak of Lhe llrsL World War an acuLe lndusLrlal
unresL wasexperlenced Labour was largely regarded as a CommodlLy of Commerce" and explolLed Lo
Lhemaxlmum ln Lngland WesL Cermany lrance and uSA 1he maln concern of ldeologlsLs ln
advocaLlngworkers parLlclpaLlon ln ManagemenL was Lhe sharlng of a parL of managerlal power wlLh
workersvarlous researches conducLed aL Lhe 1avlsLock lnsLlLuLe London revealed LhaL auLonomous and
coheslvework groups were more efflclenL and healLhler lncreased use of Lechnology ln lndusLry
necesslLaLed Lhegrowlng cooperaLlon of workers because of Lhe complex operaLlons of producLlon 1he
essence of labour parLlclpaLlon ln managemenL lles on Lhe bellef LhaL workers are capable of Laklng parL
ln declslonmaklng 1he workers wlll have Lhe capaclLy Lo grow learn and conLrlbuLe slgnlflcanLly Lo
LheenLerprlse boLh wlLh hands and hearL1hree groups of managerlal declslons affecL Lhe workers of any
lndusLrlal esLabllshmenL and hence Lheworkers musL have a say ln lL
- Lconomlc declslons
meLhods of manufacLurlng auLomaLlon shuLdown layoffs and mergers
- ersonnel declslons
recrulLmenL and selecLlon promoLlons demoLlons Lransfers grlevanceseLLlemenL work dlsLrlbuLlon
- Soclal declslons
hours of work welfare measures quesLlons affecLlng work rules and conducLof lndlvldual worker's
safeLy healLh and sanlLaLlon and nolse conLrolarLlclpaLlon baslcally means sharlng Lhe declslon
maklng power wlLh Lhe lower ranks of LheorganlzaLlon ln an approprlaLe manner
Def|n|t|ons
1he concepL of WM ls a broad and complex one uependlng on Lhe soclopollLlcal envlronmenL
andculLural condlLlons Lhe scope and conLenLs of parLlclpaLlon change
lnLernaLlonal lnsLlLuLe of Labour SLudles WM ls Lhe parLlclpaLlon resulLlng from Lhe pracLlceswhlch
lncrease Lhe scope for employees' share of lnfluence ln declslonmaklng aL dlfferenL Llers
of organlzaLlonal hlerarchy wlLh concomlLanL (relaLed) assumpLlon of responslblllLy
!ohn LelLch ln Lhe words of Lhe !ohn LelLch Lhe organlzaLlon of any facLory or oLher buslnesslnsLlLuLlon
lnLl a llLLle democraLlc sLaLe wlLh Lhe represenLaLlve governmenL whlch shall have boLh LheleglslaLlve
and execuLlve phases
lLC Workers' parLlclpaLlon may broadly be Laken Lo cover all Lerms of assoclaLlon of workers andLhelr
represenLaLlves wlLh Lhe declslonmaklng process ranglng from exchange of lnformaLlonconsulLaLlons
declslons and negoLlaLlons Lo more lnsLlLuLlonallzed forms such as Lhe presence of
workers' member on managemenL or supervlsory boards or even managemenL by workersLhemselves
(as pracLlced ln ?ugoslavla)1he maln lmpllcaLlons of workers' parLlclpaLlon ln managemenL as
summarlzed by lLC
- Workers have ldeas whlch can be useful
- Workers may work more lnLelllgenLly lf Lhey are lnformed abouL Lhe reasons for and LhelnLenLlon of
declslons LhaL are Laken ln a parLlclpaLlve aLmosphere
(l) (ll) Cb[ecLlves Accordlng Lo Cosep workers' parLlclpaLlon may be vlewed as
- An lnsLrumenL for lncreaslng Lhe efflclency of enLerprlses and esLabllshlng harmonlous relaLlons
- A devlce for developlng soclal educaLlon for promoLlng solldarlLy among workers and for Lapplng
human LalenLs
- A means for achlevlng lndusLrlal peace and harmony whlch leads Lo hlgher producLlvlLy andlncreased
producLlon
- A humanlLarlan acL elevaLlng Lhe sLaLus of a worker ln Lhe socleLy
- An ldeologlcal way of developlng selfmanagemenL and promoLlng lndusLrlal democracy
CLher ob[ecLlves of WM can be clLed as
- 1o lmprove Lhe quallLy of worklng llfe (CWL) by allowlng Lhe workers greaLer lnfluence
andlnvolvemenL ln work and saLlsfacLlon obLalned from work and
- 1o secure Lhe muLual cooperaLlon of employees and employers ln achlevlng lndusLrlal peacegreaLer
efflclency and producLlvlLy ln Lhe lnLeresL of Lhe enLerprlse Lhe workers Lhe consumersand Lhe naLlon
Importance
1 lgher roducLlvlLy 1he lncreased producLlvlLy ls posslble only when Lhere exlsLs fullesL co
operaLlon beLween labour and managemenL lL has been found LhaL poor labour managemenL
relaLlons donoL encourage Lhe workers Lo conLrlbuLe anyLhlng more Lhan Lhe mlnlmum
deslrable Lo reLaln Lhelr [obs1hus parLlclpaLlon of workers ln managemenL ls essenLlal Lo
lncrease lndusLrlal producLlvlLy2
CreaLer CommlLmenL
An lmporLanL prerequlslLe for forglng greaLer lndlvldual commlLmenL ls Lhelndlvldual's lnvolvemenL and
opporLunlLy Lo express hlmself arLlclpaLlon allows lndlvlduals Lo expressLhemselves aL Lhe work place
raLher Lhan belng absorbed lnLo a complex sysLem of rules procedures andsysLems lf an lndlvldual
knows LhaL he can express hls oplnlon and ldeas a personal sense of lndlvldualknows LhaL he can
express hls oplnlon and ldeas a personal sense of graLlflcaLlon and lnvolvemenL Lakesplace wlLhln hlm l
am sure you wlll agree LhaL parLlclpaLlon lncreases Lhe level of commlLmenL and Lheemployees sLarL
relaLlng Lo Lhe organlsaLlon3
8educed lndusLrlal unresL
lndusLrlal confllcL ls a sLruggle beLween Lwo organlsed groups whlchare moLlvaLed by Lhe bellef LhaL
Lhelr respecLlve lnLeresLs are endangered by Lhe selflnLeresLed behavlour of Lhe oLher arLlclpaLlon
cuLs aL Lhe very rooL of lndusLrlal confllcL lL Lrles Lo remove or aL leasLmlnlmlse Lhe dlverse and
confllcLlng lnLeresLs beLween Lhe parLles by subsLlLuLlng lL wlLh cooperaLlonhomogenelLy and common
lnLeresLs 8oLh sldes are lnLegraLed and declslon arrlved aL are muLual raLher Lhan lndlvldual4
lmproved ueclslons
l am sure LhaL you wlll agree LhaL communlcaLlon ls never a one way processAlso noLe LhaL lL ls seldom
lf ever posslble for managers Lo have knowledge of all alLernaLlves and allconsequences relaLed Lo Lhe
declslons whlch Lhey musL make 8ecause of Lhe exlsLence of barrlers Lo Lhe
upward Ilow oI inIormation in most enterprises, much valuable inIormation possessed by
subordinatesnever reaches their managers. Participation tends to break down the barriers, and makes the
inIormationavailable t o managers. To the ext ent such inIor mat ion alt ers the decisions, the
qualit y oI decisions isimproved.5.
Human Resource Development.
Participation provides education to workers in the management oI industry. It Iosters initiative and
creativity among them. It develops a sense oI responsibility. InIormalleaders get an opportunit y to
reinIorce t heir posit ion and status by playing an active r ole in decision-making and by
inducing the members oI the group to abide by them.6.
Reduced Resistance to Change
. Last but not the least, it should be noted that changes are arbitrarilyi nt r oduc ed I r om a bove
wi t hout exp l a na t i on. Sub or di na t es t end t o I eel i ns ec ur e a nd t a ke
c ou nt er mea s ur es a i med a t s a bot a ge oI c ha nges . But when t hey ha ve
pa r t i c i pa t ed i n t he dec i s i on ma ki ngprocess, they have had an opportunity to be heard. They
know what to expect and why. Their resistanceto change is reduced.
(I) (iii) Essential condition Ior WPM:
The success oI workers portion in management depends upon the Iollowing conditions.

The attitude and out look oI t he parties should be enlight ened and impartial so that a Iree
andIrank exchange oI thoughts and opinions could be possible. Where a right kind oI attitude existsand
proper atmosphere prevails the process oI participation is greatly stimulated.

Both parties should have a genuine Iaith in the system and in each other and be willing to
work t o g e t h e r . T h e ma n a g e m e n t mu s t g i v e t h e p a r t i c i p a t i n g i n s t i t u t i o n
i t s r i g h t p l a c e i n t h e manager ial organization oI the undertaking and implementing
the policies oI t he undertaking. The l a bor , on t he ot her ha nd, mus t a l s o whol e
hea r t edl y c o- op er a t e wi t h t he ma na gemen t through its trade unions. The Ioremen and
supervisory cadre must also lend their Iull support sothat the accepted policies could be implemented
without any resentment on either side.

Pa r t i ci pa t i on s hou l d b e r ea l . The i s s u es r el a t ed t o i ncr ea s e i n pr odu ct i on a nd
pr odu ct i vi t y, evaluation oI costs, development oI personnel, and expansion oI markets should also be
broughtunder the jurisdiction oI the participating bodies. These bodies should meet Irequently and
their decisions should be timely implemented and strictly adhered to. Further,
o
Participation must work as complementary body t o help collect ive bargaining, whichcreates
conditions oI work and also creates legal relations.
o
Ther e s hou l d b e a s t r ong t r a de u ni on, whi c h ha s l ea r nt t he vi r t u es oI u ni t a nd
s el I - reliance so that they may eIIectively take part in collective bargaining or participation.
o
A peaceIul at mospher e should be ther e wher ein ther e are no strikes and lock-outs, Ior their
presence ruins the employees, harms the interest oI the society, and puts the employeesto Iinancial losses.
o
Authority should be centralized through democratic management process. Theparticipation should be
at the two or at the most three levels.
o
Programs Ior training and education should be developed compr ehensively. For
thispurpose, Labor is t o be given educat ion not to the head alone, not to t he heart alone,
not tot he hands alone, but it is dedicated t o the thr ee; t o make t he wor kers think, Ieel and
act.
Labor is to be educated to enable him to think clearly, rationally and logically; to enable himto Ieel deeply
and emotionally; and to enable him to act in a responsible way.
(I) (iv) Scope and ways oI participation (Forms):
One view is t hat workers or the trade unions should, as equal partners, sit wit h the
management andmake joint managerial decisions.The ot her view is t hat workers should only be
given an opportunit y, thr ough their r epresentatives, t oinIluence managerial decisions at various
levels.In practice, the participation oI workers can take place by one or all the methods listed below:1.
Board level participat ion2. Ownership participation3. Complet e contr ol4. StaII or wor k
councils5. Joint councils and committ ees6. Collective Bargaining7. Job enlargement and
enr ichment8. Suggestion schemes9. Qua l i t y c i r c l es 10. Empowered teams11. TQM12.
Financial participation
1. Participation at the Board level:
This would be the highest Iorm oI industrial democracy.The workers` representative on the Board can
play a useIul role in saIeguarding the interests oI workers.He or she can serve as a guide and a control
element.

He or she can prevail upon top management not to take measures that would be unpopular withthe
employees.

He or she can guide the Board members on matters oI investment in employee beneIit schemeslike
housing, and so Iorth.The Gover nment oI India took t he init iative and appoint ed workers`
repr esentatives on t he Board oI Hindustan Antibiotics (Pune), HMT (Bangalore), and even
nationalized banks. The Tatas, DCM, and aIew others have adopted this practice.
Problems associated with this method:

Focus oI workers` repr esentatives is diIIer ent Irom t he Iocus oI the r emaining members oI
theBoard.

Communication and subsequently relations between the workers` representative and the workerssuIIers
aIter the Iormer assumes directorship.

He or she tends to become alienated Irom the workers.

As a result, he or she may be less eIIective with the other members oI the Board in dealing withemployee
matters.

Beca us e oI t he di I I er enc es i n t he cu l t ur a l a nd edu ca t i ona l ba c kgr ou nds , a nd
di I I er enc es i nb eha vi our a nd ma nner s , s uc h a n emp l oyees ` r epr es ent a t i ve ma y
I eel i nI er i or t o t he ot her members, and he or she may Ieel suIIocat ed. Hence, his or
her role as a dir ect or may not besatisIying Ior either the workers or the management.

Such representatives oI workers` on the Board, places them in a minority. And the decisions oI the Board
are arrived at on the basis oI the majority vote.
2. Participation through ownership:
This involves making the workers` shareholders oI the company by inducing them to buy equity shares.

In many cases, advances and Iinancial assistance in the Ior m oI easy repayment opt ions
areextended to enable employees to buy equity shares. Examples oI this method are available in
themanuIacturing as well as the service sector.

Advantage: Makes the workers committed to the job and to the organization.

Dr a wba c k: EI I ect on pa r t i c i pa t i on i s l i mi t ed b eca us e owner s hi p a nd
ma na ge me nt a r e t wodiIIerent things.
3. Participation through complete control:
Wor kers acquir e complet e control oI the management through elect ed boards. The syst em
oI selI-ma na ge ment i n Yu gos l a vi a i s ba s ed on t hi s c onc ept . Sel I - ma na gement
gi ves c omp l et e c ont r ol t oworkers to manage directly all aspects oI industries through their
representatives.Advantages:

Ensures identiIication oI the workers with their organization.

Industrial disputes disappear when workers develop loyalty to the organization.

Trade unions welcome this type oI participation.Conclusion: Complete control by workers is not an
answer to the problem oI participation because theworkers do not evince interest in management
decisions.
4. Participation through StaII and Works Councils:
StaII councils or works councils are bodies on which the r epr esentation is ent irely oI t he
employees. Ther e may be one council Ior the entir e or ganizat ion or a hierarchy oI councils.
The employees oI t herespective sections elect the members oI the councils. Such councils play a
varied role.

Their role ranges Ir om seeking inIor mation on the management `s int ent ions t o a Iull share
indecision-making.Such councils have not enjoyed t oo much oI success because trade union
leaders Iear the erosion oI their power and prestige iI such workers` bodies were to prevail.
5. Participation through Joint Councils and Committees:
Joint councils are bodies comprising representatives oI employers and employees. This method sees avery
loose Iorm oI participation, as these councils are mostly consultative bodies.Work committees are a legal
requirement in industrial establishments employing 100 or more workers.Such committees discuss a wide
range oI topics connected to labour welIare.Examples oI such committees are welIare committee, saIety
committee, etc. Such committees have notproven to be t oo eIIective in promot ing industrial
democracy, increasing product ivit y and reducinglabour unrest.
6. Participation through Collective Bargaining:
Through the pr ocess oI CB, management and workers may r each collect ive agreement
regarding rulesIor the Iormulation and termination oI the contract oI employment, as well as conditions
oI service in anestablishment. Even though these agreements are not legally binding, they do have some
Iorce. For CBto work, the workers` and t he employers` r epr esentatives need t o bargain in
the right spirit. But inpractice, while bargaining, each party tries to take advantage oI the other. This
process oI CB cannot be
called WPM in its strongest sense as in r ealit y; CB is based on the crude concept oI
exercising power Ior the beneIit oI one party. WPM, on t he ot her hand, brings bot h the
parties toget her and developsappropriate mutual understanding and brings about a mature
responsible relationship.
7. Participation through Job Enlargement and Job Enrichment:
Excessive job specialization t hat is seen as a by-pr oduct oI mass production in industries,
leads toboredom and associated problems in employees.Two met hods oI j ob des i gni ng j ob
enl a r gement a nd j ob enr i c hment a r e s ee n a s met hods oI addressing the problems.

Job enlargement means expanding the job content adding task elements horizontally.

Job enrichment means adding `motivators` to the job to make it more rewarding. This is WPMi n t ha t i t
oI I er s I r eedom a nd s c op e t o t he wor ker s t o us e t hei r j u dg ment . But t hi s I or m
oI participation is very basic as it provides only limited Ireedom to a worker concerning the methodoI
perIorming his/her job.The wor ker has no say in ot her vital issues oI concer n to him issues
such as job and incomesecurity, welIare schemes and other policy decisions.
8. Participation through Suggestion Schemes:
Emp l oye es ` vi ews a r e i nvi t ed a nd r ewa r d i s gi ven I or t he b es t s u gges t i on. Wi t h
t hi s s c heme, t he emp l oy ees ` i nt er es t i n t he pr ob l e ms oI t he or ga ni za t i on i s
a r ous ed a nd ma i nt a i ned. Pr ogr es s i vemanagements increasingly use the suggestion schemes.
Suggestions can come Irom various levels. Theideas could range Irom changes in inspect ion
procedur es t o design changes, process simpliIication, paper-work reduction and the like. Out oI
various suggestions, those accepted could provide marginal tosubstant ial beneIits to t he company.
The rewards given t o the employees are in line wit h the beneIitsderived Irom the suggestions.
9. Participation through Quality Circles:
Concept originated in Japan in the early 1960s and has now spread all over the world. A QC consists
oI seven t o t en people Ir om t he same wor k area who meet r egularly to deIine, analyze, and
solve qualit yand relat ed problems in t heir area. These circles requir e a lot oI t ime and
commit ment on the part oI members Ior regular meetings, analysis, brainstorming, etc. Most QCs
have a deIinite liIe cycle one tot hr ee years. Few circles survive beyond t his limit eit her
because they loose st eam or they Iace simpleproblems. QCs can be an excellent bridge between
participative and non-participative approaches. For QCs to succeed in the long run, the management
needs to show its commitment by implementing someoI the suggestions oI the groups and providing
Ieedback on the disposition oI all suggestions.Training in pr oblem-solving t echniques is provided
to the members. QCs are said t o provide quick, concrete, and impressive results when correctly
implemented.
Advantages:

Employees become involved in decision-making, acquir e communication and analytical
skillsand improve eIIiciency oI the work place.

Organization gets to enjoy higher savings-to-cost ratios.

Chances oI QC members to get promotions are enhanced.
The Indian Scenario:

Tried by BHEL, Mahindra and Mahindra, Godrej and Boyce among others.

Experienced mixed results:
o
M&M (jeep division) with 76 QCs has experienced Iavourable results.

Technical problems got solved.

Workers got to get out oI their daily routine and do something challenging.

Trade unions look at it as: A way oI overburdening workers, andAn attempt to undermine their role.
10. Empowered Teams:
Empower ment occurs when author it y and responsibilit y are passed on t o the employees
who t henexperience a sense oI ownership and control over their jobs. Employees may Ieel more
responsible, maytake initiative in their work, may get more work done, and may enjoy the work more. For
empowermentto occur, the Iollowing approach needs to be Iollowed as compared to the traditional
approach:


Features oI empowered or selI-directed teams:

Empowered to share various management and leadership Iunctions.

Plan, control and improve their work.

OIten create their schedules and review their perIormance as a group.

May prepare their own budgets and co-ordinate their work with other departments.
o
Usually order materials, keep inventories and deal with suppliers.
o
Frequently responsible Ior acquiring any new training they might need.
o
May hire their own replacement to assume responsibility Ior the quality oI their products
or services
This Text should be used as reIerence Ior MLFIR. Students should also go through
websites, books and take guidance Irom their respective Iaculty members.
Vikas Shrivastava Page 6
Titan, Reliance, ABB, GE Plastics (India), Wipro Corporation and Wipro InIoTech are empowering
employees both Irontline as well as production staII, and are enjoying positive results.
11. Total Quality Management:
TQM reIers to the deep commitment, almost obsession, oI an organization to quality.
Every step in company`s processes is subjected to intense and regular scrutiny Ior ways to improve it.
Some traditional belieIs are discarded.

High quality costs more.

Quality can be improved by inspection.

DeIects cannot be completely eliminated.

Quality in the job oI the QC personnel.
New principles oI TQM are:

Meet the customer`s requirement on time, the Iirst time, and 100 oI the time.

Strive to do error-Iree work.

Manage by prevention, not correction.

Measure the cost oI quality.

TQM is called participative because it is a Iormal programme involving every employee in the
organization; making each one responsible Ior improving quality everyday.
12. Financial Participation:
This method involves less consultations or even joint decisions. PerIormance oI the organization is linked to
the perIormance oI the employee. The logic behind this is that iI an employee has a Iinancial stake in the
organization, he/she is likely to be more positively motivated and involved.
Some schemes oI Iinancial participation:

ProIit-linked pay

ProIit sharing and Employees` Stock Option schemes.

Pension-Iund participation.
Pre-requisites Ior successIul participation:

Management and operatives/employees should not work at cross-purposes i.e. they must have
clearly deIined and complementary objectives.

Free Ilow oI communication and inIormation.

Participation oI outside trade union leaders to be avoided

Strong and eIIective trade unionism.

Workers` education and training.

Trade unions and government needs to work in this area.

Trust between both the parties.

Workers should be associated at all levels oI decision-making.

Employees cannot spend all their time in participation to the exclusion oI all other work