CERTIFICATE OF SUPERVISION

THIS IS TO CERTIFY THAT SARANSH PATLE HAS SUCESSFULLY COMPLETED

THE PROJECT WORK ON THE TOPIC “WORKER PARTICIPATION IN
MANAGEMENT” IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE
KNOWLEDGE OF MRS.NEETU SINGH MA’AM PRESCRIBED BY INDORE
INSTITUTE OF LAW. THIS PROJECT IS THE RECORD OF AUTHENTIC WORK
CARRIED OUT DURING THE ACADEMIC YEAR 2018-19.

TEACHER’S SIGNATURE ....................

DATE………………………
 DECLARATION OF RESEARCHER

I HEREBY DECLARED THAT THIS PROJECT REPORT ENTITLED “WORKERS

PARTICIPATION IN MANAGEMENT” IS DONE BY ME AND IS MY OWN
EFFORTS . I CERTIFY THAT THIS WORK CONTAINS NO MATERIAL WHICH HAS
BEEN ACCEPTED FOR THE AWARD OF ANY OTHER DEGREE OR DIPLOMAIN MY
NAME, IN ANY OTHER UNIVERSITY OR INSTITUTION. I HAVE NOT COPIED IT
FROM ANY OTHER STUDENTS ’ WORK OR FROM ANY OTHER SOURCES
EXCEPT WHERE DUE REFERENCE OR ACKNOWLEDGEMENT IS MADE
EXPLICITLY IN THE TEXT, NOR HAS ANY PART BEEN WRITTEN FOR ME BY
ANOTHER PERSON.

I GIVE CONSENT TO THIS COPY OF MY THESIS, WHWN DEPOSITED IN THE

UNIVERSITY LIBRARY, BEING MADE AVAILABLE FOR LOAN, SUBJECT TO THE
PROVISIONS OF THE COPYRIGHT ACT 1968.

I ALSO GIVE PERMISSION FOR THE DIGITAL VERSION OF MY THESIS TO BE MADE

AVAILABLE ON THE WEB, UNLESS PERMISSION HAS BEEN GRANTED BY THE
UNIVERSITY TO RESTRICT ACCESS FOR A PERIOD OF TIME.

SARANSH PATLE
 ACKNOWLEDGEMENT

I ACKNOWLEDGED MY DEEP SENSE OF GRATITUDE TO THOSE PEOPLE

WHOSE WORK HAVE BEEN CONSULTED AND EXTENSIVELY USED AND
WHICH HAVE PROVED EXCEPTIONALLY ILLUMINATING AND HELPFUL
IN PREPARATION OF THIS PROJECT.

I ALSO DEEPLY THANKFUL TO MY TEACHER MRS. NEETU SINGH MA’AM

FOR EXTENDING HIS KIND OF HELP AT EVERY STAGE.

SARANSH PATLE
 ABSTRACT
Workers participation is important part of organization. Workers participation increases the
productivity of workers as well as they become committed towards organization. The research
paper talks about the need for workers participation in management and how workers
participation helps in achieving goals of organization. Also the research paper discuss about
various forms of worker participation that is how workers are participation in management.
Contents
ABSTRACT...................................................................................................................................................... 4
“WORKERS PARTICIPATION IN MANAGEMENT” .......................................................................................... 6
INTRODUCTION ............................................................................................................................................. 6
Meaning of worker participation .................................................................................................................. 8
Characteristics of workers participation in management ............................................................................ 9
Concept of Workers’ Participation.............................................................................................................. 10
Need for Workers’ Participation ................................................................................................................. 11
Forms of Worker Participation in Management ......................................................................................... 13
Reasons for the Failure of Workers’ Participation Schemes....................................................................... 15
Measures to be taken for Making Workers’ Participation Successful ........................................................ 16
Impact of Worker Participation in Management ........................................................................................ 17
Conclusion ................................................................................................................................................... 18
Bibliography ................................................................................................................................................ 19
 “WORKERS PARTICIPATION IN MANAGEMENT”

INTRODUCTION

A prologue

Participation of worker in management of industries is come under article43A of the constitution

and it also falls under part4 of directive principle of state policy. The state is responsible to take
steps by appropriate legislation or in any other way to secure the participation of worker in
management of undertaking, establishments or other organizations engaged in other industries.

Worker participation in management can be defined as the participation of non managerial

employees in the decision process of the organization. Workers participation give employees the
mental and psychological satisfaction and thereby increase their involvement in the affairs of
organizations. It is a method in which workers get rights to take part in decision on issues which
are of concern to the workers like safety, wages, working condition, welfare, incentives etc.

Worker participation in management is one of the most important factors of industrial democracy
because it is the distribution of social power in industry so that the power is distributed among all
those who are engaged in work rather then power being concentrated only in the hand of few
managers. Participation is a method of communication and consulting in which employee
express their opinion either formally or informally related to the managerial decision. It also
provide opportunities for all the members of organistaion to express his mental ideas along with
the physical efforts toward the improvement of organistaional effectivness as well as enhancing
his economic welfare. It can be done at different level of management-

a) At the shop floor level.

b) At the department level
c) At the board level
The decision making at different level would assume different pattern in regard to policy
formulation and execution.

Objective of research

The main objective of this research is to know how workers participation in management
increases the productivity of organization and accomplishes its goals. The aim is to be aware of
the impact of workers participation in management and what is its importance in workplace.
Research question

● Why workers participation is important in management?

● How workers participation helps in achieving goals of organization?
● What are the different forms of workers participation used in workplace?
● What is the main objective of worker participation in management?
● What is impact of workers participation in management?

Research methodology

This research paper mainly used secondary sources for collecting data on topic workers
participation in management. The data is collected from books, journals, online sources.
 Meaning of worker participation

Some important definition of worker participation in management are as follows -

According to Keith Davis, “Workers’ 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 responsibility of achieving them”.
In the words of Mehtras “Applied to industry, the concept of participation means sharing the
decision-making power by the rank and file of an industrial organisation through their
representatives, at all the appropriate levels of management in the entire range of managerial
action.
According to the ILO:
“Workers’ participation may, broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of information,
consultations, decisions and negotiations to more institutionalized forms such as the presence of
workers’ members on management or supervisory boards or even management by workers
themselves as practised in Yugoslavia”.
In Yugoslavia, WPM is governed by the Law on Workers’ Management of State Economic
Enterprises and Higher Economic Association. The Act consists of a three-tier participation
structure: collective bargaining, workers’ council, and hoard of management.
In fact, the basic reason for differences in perception of WPM is mainly due to the differential
pattern of practices adopted by various countries while implementing workers’ participation in
management.
For example, in Great Britain and Sweden, WPM is in the form of Joint Consultation through
Joint Consultative Committees, Works Committees in France, Co-determination Committees in
West Germany, Joint Work Council in Belgium, Workers’ Council and Management Board in
Yugoslavia and Union Management Co-operation in USA.
In India, WPM is in the form of, what we call Labour Management Cooperation and Workers’
Participation in Management. It is implemented through the agencies like Works Committees,
Joint Management Councils (JMCs) Shop Councils, Unit Councils and Joint Councils.
Notwithstanding, these different forms of WPM differ only in degree, not in nature.
Be the perceptual differences as these may, WPM is a system of communication and
consultation, either formal or informal, by which the workers of an organisation are kept
informed, as and when required, about the affairs of the undertaking and through which they
express their opinion and contribute to decision-making process of management.
 Characteristics of workers participation in management

The following are the main characteristics of WPM:

1. Participation implies practices which increase the scope for employees’ share of influence in
decision-making process with the assumption of responsibility.
2. Participation presupposes willing acceptance of responsibility by workers.
3. Workers participate in management not as individuals but as a group through their
representatives.
4. Worker’s participation in management differs from collective bargaining in the sense that
while the former is based on mutual trust, information sharing and mutual problem solving; the
latter is essentially based on power play, pressure tactics, and negotiations.
5. The basic rationale tor worker’s participation in management is that workers invest their
Iabour and their fates to their place of work. Thus, they contribute to the outcomes of
organization. Hence, they have a legitimate right to share in decision-making activities of
organisation.
 Concept of Workers’ Participation

Participation is the mental and emotional involvement of a person in group situation. It

encourages a person to contribute to group goals and share responsibility. Participation is viewed
from different angles

(i) Participation in a process of decision making;

(ii) Actual decision making

(iii) Control over decision making.

Different concepts of workers’ participation are discussed as follows:

(i) Participation in Decision Making:

According to this view workers participate or have a say in decision making. It is a process of
joint decision making where more persons participate to take decisions. The workers can
influence the process of decision making.

(ii) Actual Decision Making:

As per the second view, participation means actual involvement in decision making.
Participation here denotes active participation and not merely a ‘say’ or ‘influence’. The
subordinates participate with superiors in decision making process.

The decisions taken by managers directly influence the interest and well being of workers. The
workers have considerable interest in these decisions. Because of this interest they would like to
take part in decision making. Participation of this type may also be called ‘joint decision
making’.

(iii) Control over Decision Making:

The word ‘control’ here means “any process through which one group determines what another
person or group of persons will do.” Participation in this view means an involvement of members
in the exercise of control usually through decision making in group meeting. The subordinates
are involved in determining the course of action at all the stages of decision making process.

A number of connotations are used to express workers’ participation. The connotations may be
‘co-determination’, “joint decision-making”, ‘workers’ control’, labour management co-
operation etc. though connotations appear to convey different meanings but there is difference of
degree only, the main idea has been the same. The purpose is to increase the employees’
influence in most of the enterprises.
 Need for Workers’ Participation

The participation of workers in management is necessary in the present industrial atmosphere. It

creates satisfaction among workers, which in turn helps in increasing their morale. Without the
co-operation of workers industrial output cannot be increased.

The participation helps in the following ways:

(i) Increased Commitment:

When workers are consulted on important policy decisions then they feel as part and parcel of
the enterprise. The workers are free to express their views about various matters affecting them.
It helps the management to understand the view point of workers. This gives a sense of personal
gratification to workers and they feel committed to the work and organisational goals.

(ii) Growth of Workers:

When workers are allowed to express their opinions in working methods then it enhances
creativity among them. With their experience they try to devise better methods of performing the
work.

This gives an opportunity to workers for initiative and growth of work. This gives an opportunity
to workers. On other hand, if workers are supposed to work as per the systems devised for them
they will not have any opportunity to develop their talent.

(iii) Satisfy Social and Egoistic Needs:

According to Maslow’s theory of needs first of all physiological needs are satisfied. When
workers have satisfied the needs of food, clothing shelter etc., they want to satisfy social and
egoistic needs. The workers want to feel important in the organisation. Participation of workers
will give them a sense of pride and satisfaction. The desire to satisfy social and egoistic needs
will also act as a motivator to workers.

(iv) Acceptance of Change:

Whenever a change is introduced by management there is normally a resistance from workers.
They feel insecure and fear the adverse consequences of such change. When workers are a part
of decisions making body and it introduces any change, it will be easily accepted by them.

The pros and cons of new decisions will be explained to workers and they will have a chance to
understand their implications. The participation of workers will enlighten them about various
policies and will become acceptable to them.
(v) Better Industrial Relations:
Industrial relations become strained when workers and management suspect each other’s
intentions. Workers feel that they are being exploited and management is of the view that
workers try to get more than they deserve. This type of environment creates conflicts between
the two organised groups i.e. workers and management.

The participation of workers will give them a chance to understand the management’s
viewpoints. This will, at least, minimise if cannot altogether eliminate the area of conflict. The
industrial relations will certainly improve with workers’ participation in decision making
process.

(vi) Greater Efficiency and Job Satisfaction:

The importance given to workers by consulting them for various decisions will increase their
efficiency and job satisfaction. Various organisational goals are set with the consent of workers
and they will feel motivated to achieve them in time. There will be an atmosphere of mutual
help. The improved performance of workers will give them job satisfaction also.

(vii) Better Understanding:

The participation of workers in organisational problems and their solutions will create an
organisational balance. The workers will also be as conscious of various difficulties faced as
management feels. The discussion of workers’ viewpoint will help management to understand
their aspirations and difficulties faced. This will create an atmosphere of understanding and
mutual co-operation.

(viii) Solidarity Among Workers:

It will help in creating solidarity among workers. They will become an organised force. Since
workers will be required to send their representatives for participating in various bodies they will
come on a common platform. The workers will come together under common banner for
increasing their bargaining power. So workers’ participation will bring solidarity among them.
 Forms of Worker Participation in Management

Followings are the forms of worker participation in management:

1. Discussions
2. Group discussion making
3. Co-Ownership
4. Seat on Board of Directors
5. Works Committee
6. Profit Sharing
7. Suggestion Scheme

Discussions

In this system the manager or executive calls a meeting of workers and shares the information
with them, whenever he feels necessary. He explains the problem to the workers and gives
information to them and invites suggestions from them.
The workers give their opinions to the problem. A sort of group discussion is held and a
consensus is involved. Decision making authority is not transferred by the manager. The
discussion helps the manager to make up his mind about the problem. It is for the manager to
take a final decision.

Group Decision Making

In this form of workers’ participation in management, the decision making power is delegated to
the group. The manager acts as a leader, a chairman but final decision made by the group will be
implemented. Authority and responsibility are delegated to the group for particular managerial
area. This system is also known as democratic or participative management.
This system of participation should involve all levels of management and top management must
practice it properly. The success of this system will also depend upon the capability and
intelligence of workers. Whether workers are capable of taking decisions or not, will determine
the success or failure of this system.

Co-Ownership

Workers are made shareholders by allotting those shares in the company. They are employees as
well as owners of the business concern. Thus, their participation in the management is
automatically guaranteed.
Seat on Board of Directors

In this case the workers’ representative is given a seat on the boards of directors. In advanced
countries like Britain and U.S.A., trade unions have already rejected this idea. It is generally felt
that the workers do not understand the intricacies of management.

Moreover, their representatives being in minority may not have much say in the decision making
whereas that decision will be applicable to all the employees. By remaining out of the board,
they can keep a better check on the management.

The Sachar Committee studied the problems of workers’ participation in management and
observed “Conditions must be created where the worker directors are able to play a helpful and
effective role. It is apparent that as a member of the board, the worker director will familiarise
himself with subjects with which he was not associated before. The training of the employees
must, therefore, be immediately taken in hand”.

Works Committee

These committees have been regarded as the most effective social institution of industrial
democracy. The need for their constitution has been emphasised as early as 1931 by the Royal
Commission on Labour.

It was again emphasised by the Industrial Truce Resolution on 1947, which recommended their
constitution in each industrial undertaking for the settlement of any dispute which may arise in
future.

This recommendation was given effect to in the Industrial Disputes Act of 1947. Section 3 of the
Act provides for these bodies in every undertaking employing 100 or more workmen.

These committees are consultative bodies. Their functions include discussion of conditions of
work like lighting, ventilation, temperature and sanitation etc., and amenities like water supply
for drinking purposes, canteen, medical services, safe working conditions, administration of
welfare funds etc. The works committee should not deal with matters connected with collective
bargaining which are exclusively reserved for trade unions.

Profit Sharing

Workers feel involved in the management especially when they are given a share in profits of the
business.

Suggestion on Scheme

Suggestion scheme may also be introduced for creating interest in the work by announcing a
suitable reward for original and useful suggestions. Employees can put their suggestions in the
suggestion boxes which are installed in the various departments.
 Reasons for the Failure of Workers’ Participation Schemes

The object of giving representation to workers governing bodies was to bring labour and
management closer and work for the achievement of organisational goals, The scheme has not
been successful.

The reasons for its failure are as follows:

1. The managements have been of the view that workers are not competent to take decisions.
They did not reconcile to the idea that the workers’ participation in decision making bodies will
help in increasing efficiency and productivity. Perhaps the philosophy of the scheme was not
understood clearly by managements.

2. It was difficult for workers’ representatives to play the role of management and union leaders.
On one side they were co-managers and on the other hand, they had to lead the workers. The
dual role required for workers’ nominees was difficult for them and created problems for them.

3. The scheme of workers’ participation was inspired by the government without any initiative
from managements. So managements took it only as an imposition upon them.

4. The active association of union leaders with political parties was only responsible for the
failure of this scheme. The political motives on leaders sometimes weighed heavily with the
leaders and the cause of labour was subordinated.

5. The workers’ participation is mainly emphasised at top level management. Only few workers
participate at managerial level. This does not involve every worker in management. A common
worker is not enthusiastic about participation. The indifference of common workers is also
responsible for the failure of this scheme.

6. The workers in India do not feel motivated to participate in decision making because their
lower needs to remain unsatisfied.
 Measures to be taken for Making Workers’ Participation Successful

The following steps may be taken to ensure success of workers’ participation in management:

1. The employers should adopt a broad, progressive and democratic attitude. They should be
willing to associate the workers and discuss the problems freely and frankly with them. They
should be made conscious of their obligations to workers and the benefits of participative
management.

2. There must be a strong trade union with enlightened leadership. This union must be truly
representative and only one union should be recognised in each industrial unit to represent the
workers.

3. Employers and workers should agree on the objectives of the industry and their mutual rights
and obligations. Managers should not treat participation as an imposed liability and workers
should not use it for expressing their grievances and demands only.

4. Workers and their representatives should be provided education and training in the philosophy
and process of participative management. They must be taught what is expected of them and how
they are expected to perform.

5. Mere legislation cannot make participation successful. Existence of an atmosphere of trust,

faith, confidence and recognition is a must on the part of management and workers both.

6. Participation should be a continuous process. To begin with it must start at the operating level.

7. Labour management relations should be cordial or at least there should not be any tension in
their relations. There should not be any blockage in communication between them.
 Impact of Worker Participation in Management

Employee participation is the process whereby employees are involved in decision making
processes, rather than simply acting on orders. Employee participation is part of a process of
empowerment in the workplace. It is important for employees to participate effectively in
decision making, and strengthen their level of influence to all existing structures.

The main aim of the study was to ascertain the impact of participation in decision making of
workers in making of plans and policies and whether employees are satisfied with their current
participation in the organization.

Following are the impact of working participation in management

1. To prevent worker from exploitation by the management or by the owner of the

organization.
2. To have democracy in the organizations.
3. To have proper development of the working class.
4. To resolve conflict and difference between management and employ.
5. To create an employee a sense of participation in industry.
6. To encourage suggestions from employees.
7. To improve the living and working conditions of employees.
8. To promote understanding between labours and management on the various issue of
organization.
9. To give employee a better understanding of their role in the working of the industry.
10. To give the employees and opportunity for self experience leading to industrial peace,
good relations and increase co-operation.
 Conclusion

The workers participation in management means participation of workers in decision-making

process. All policies are made after consulting with employees. Worker participation is important
because it leads to greater efficiency and workers get motivated to achieve desired objectives.
There are various forms through which workers are participated in management.

There are various way through which workers participation can be done in management. It on
management how they want their workers to participate in decision making process. Workers
participation helps in increasing efficient of employees.
 Bibliography
Websites

 www.wikipedia.com
 https://www.bseindia.com
 www.moneycontrol.com
 https://www.nseindia.com
 www.roca.in
 https://www.toolshero.com