workers’ participation in management

A PRESENTATION

ON TOPIC OF

WORKERS’ PARTICIPATION IN MANAGEMENT

(CHAPTER-14)

BY

NIRAJ AGRAWAL

YOGESH BHATT

JWALANT JOSHI.

TOPICS NAME

INTRODUCTION NIRAJ AGRAWAL

SCHEMES IN WORKERS’

PARTICIPATION

YOGESH BHATT AND JWALANT JOSHI

INTRODUCTION TO I.R

• Industrial relation is basically deals with two aspects:

Cooperation and conflict.

• Cooperation between labour and capital is basic

requirement for the successful functioning of the modern capital enterprise.

Concept of conjuction

• It is a state of relationship under which the parties, instead of offering their best, offer the least in the absence of which relation will break.

• - Neil W. Chamberlain• Here workers’ like to work to the level which keeps them

employed.• Here the concept says that a person work at its best when

he owns the tools, premises, raw material and finished goods or even when the resources are hired and when capital gets separated the problem of motivation comes.

BIRTH OF WORKERS’ PARTICIPATION IN MANAGEMENT• The question to be answered was, what steps

should be taken to generate energy, sincerity and enthusiasm which people displays when they work on their own account.

• Here, concept of workers participation in management came into reference.

DEFINITION

• It refers to the joint effort of labour and capital to find out

solution and remedies common to both.

• Ian Clegg says that “ co-operation implies a situation when worker’s representative are to some extent involved in the process management”.

GOALS OF W.P.M

• Increasing productivity.

• Promoting industrial democracy.

• Avoiding conflict and friction.

ARGUMENT FOR THE OWNER’S ABSOLUTE RIGHT TO MANAGE.

• Risk and growth go together.

• Need for quick decision and ever changing

market condition.

• Management of enterprise requires skills and technical ability.

ARGUMENT AGAINST THE OWNER’S ABSOLUTE RIGHT TO MANAGE.

• Degree of risk is more for the worker than management.

• Right to manage an enterprise does not imply the right to manage men also.

FORM OF W.P.M

• Information sharing

• Problem sharing

• Joint consultation.

• Worker’s participation in management.

SCHEMES OF WORKERS’ PARTICIPATION IN MANAGEMENT IN INDIA

1. Works committee(1947)2. Joint management councils(1958)3. Board-level participation(1970)4. Shop councils and joint councils under old 20 point

programme(1975)5. Unit council and joint council in commercial and

service org. in the public sector(1977)6. Institution of employees’ participation in mgt. for

P.S.U.s(1983)7. Joint councils in Govt. services8. Institutions in some enterprises in the Pvt. Sector

1. WORKS COMMITTEES(1947)

Empowered by Section 3 of the dispute Act, 1947. Central & State Government have framed a rule.

Composition: It consist of representatives of the employer & workmen The number of workers’ representatives is not less then

the number of employer’s representatives

Function:

Workers committee is required to:

“Promote measures for securing & preserving amity & good relation between the employer & workmen and, in order to achieve this end, to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters.”

W.C. Deal with…

Condition of work Amenities Safety & prevention Celebrations Funds Educational & Recreational activities Promotion of saving Implementation & review of decision

W.C. does not deal with…

Wages & allowances Bonus & profit-sharing schemes Programmes of planning and development Matters connected with retrenchment and lay-off Victimization for trade union activities P.F., gratuity scheme and other benefits Quantum of leave and national and festival holidays Incentives schemes & housing and transport service

Working and assessment:

No. of W.C.s are less than required

Failure was due to statutory committees and parties concerned do not evince sufficient interest in them

Recommendation of commission:-

a. recognized union

b. mutual agreement

2. JOINT MANAGEMENT COUNCIL (1958)

Common interest “In a social democracy labour is a partner in the

common task of development and should participate in it with enthusiasm…enterprise in the public sector have to set an example in this respect”

Objective:

Promoting cordial relations

Developing understanding and trust

Productivity

Welfare and other facility

Training

Composition:

J.M.C. are to consist of equal no. of representative of management and employees not exceeding twelve in all, but not less than six in small undertaking

Nomination of outsiders

Functions:

Promoting productivity Giving employees a better understanding Self expression Improve conditions of the employee To assist in the admn. of law and agreements Create sense of participation Consultative function Information receiving and suggestion making function Administrative function

Working:

“The peaceful evolution of the economic system on a democratic basis.”

“To promote social mobility which is an imp. Ingredient of a social system”

Promotional efforts of government Set up of special cell

3. BOARD LEVEL PARTICIPATION(1970)

4. WORKERS’ PARTICIPATION UNDER OLD 20 POINTS PROGRAMME (1975)

Formed on 30th October 1975.

Made for organizations employing more than 500 workers

It has provided for establishment of shop and enterprise level.

Shop councils:

Composition and meetings:

Functions: Assist mgt. Improvement Identifying areas Studying absenteeism Safety measures General discipline Physical condition Welfare and health

Joint councils:

Composition and meetings:

Functions: Optimum production Solving unresolved matters Development of skills Preparation of work schedules Awarding rewards

5. UNIT COUNCILS AND JOINT COUNCILS IN COMMERCIAL AND SERVICE ORG. IN PUBLIC SECTOR(1977)

Introduce to increase worker-management participation in large organization.

Its objective was to devise a system where mutual trust and confidence are created between both the parties.

The scheme was applicable to all public sector organizations employing 100 or more people but was mandatory to the org. having less than 100 employees

Unit councils: For solving day today problems at organization level

Joint councils:-

Formed at divisional or regional level or at a branch of organisation.

6. SCHEME OF EMPLOYEE’S PARTICIPATION IN P.S.U.(1983)

Application:To all central public sector enterprises except those

which are specially exempted.

Forms:- Shop-floor level forum- Plant level forum- Board level forum

Functions: Shop level:-

cost reductions, operational efficiency, etc.

Plant level:-a. operational areasb. economical and financial areasc. personnel mattersd. welfare arease. environment matters

Board level:-Its functions includes all the shop and plant level functions plus sometimes tripartite consisting of Ministry of labour

7. JOINT COUNCILS IN GOVERNMENT SERVICE Its objective was to promote harmonious relations and co-

operation between government (as employer) and its employees.

The scheme covered all govt. employees except those in…

a. class 1 & 2b. in industries as managerial or administrative

capacityc. supervisors whose salary exceeds maximum

prescribed limit.

Structure:It provides for formation of…

Office councilRegional councilDepartmental councilNational council

Functions:All matters relating to condition of service and

work, welfare of employees, improvement of efficiency and standard of work.

JOINT COUNCIL IN RAILWAYS, POST & TELEGRAPH AND DEFENSE SECTOR

Function:Co-operation, consultation, discussion and

negotiation but mainly in resolving differences and disputes.System:-

All the three organizations are having a 3-tier systema. at lower levelb. at division or headquarter levelc. if the above two are not effective than a

tribunal to resolve any disputes

8. WORKERS’ PARTICIPATION IN PRIVATE SECTOR

Labour management cooperation at TISCO:

Joint department council

Joint works council

Joint town council

Joint consultative council of management

Participation of workers in management bill 1990: Introduced in Rajyasabha on 30th may,1990.

Objectives:To secure participation of workers in mgt. at all levels and to formulate new schemes.

Main provisions of the Bill:Mainly a 3-tier systema. Shop floor councilb. Establishment councilc. Representation on board of council

RECOMMENDATION OF THE 2ND NCL(2002)

Hurdles to worker’s participation in management in India:

Basic conflict of interest Multiplicity of trade unions and factionalism The scheme’s consideration as imposed ones by the

owners and trade unions. Complains of plethora of joint bodies in Indian

industries. Lack of specific arrangements for sharing the gains of

participation. Indifference towards the scheme. Lack of education and training.

BIBLIOGRAPHY

Book used: Industrial Relation, Trade Union, and Labour

Legislation. (Pearson Education)

-By Sinha, Sinha and Shekhar