WORKERS PARTICIPATION IN MANAGEMENT

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					WORKERS’ PARTICIPATION
   IN MANAGEMENT


        A K BASU
   WHAT IS MANAGEMENT
• TO TRANSLATE THE INTERESTS OF THE
  STAKEHOLDERS INTO A VIABLE BUSINESS
  PROPOSITION
• PROCURING AND UTILISING RESOURCES
  OPTIMALLY TO MAKE PROFIT AND GROW
  THE BUSINESS
• THIS IS TO BE DONE BY PROVIDING GOODS
  AND SERVICES TO CUSTOMERS AT
  COMPETITIVE COST AND QUALITY
• TO DIRECT, CONTROL AND DEPLOY
     EMPLOYEE’S ROLE
• TO PERFORM AS PER REQUIREMENT
  OF THE BUSINESS PROCESS
• BUSINESS PROCESS SUCH AS
  MANUFACTURING, MARKETING,AND
  SERVICES IS SEGMENTED
• HENCE THE ROLE OF THE EMPLOYEE
  BECOMES LIMITED
    WHY PARTICIPATION ?
• IT IS A RESPONSE TO THE THREAT OF
  COUNTERVAILING POWER OF TRADE
  UNIONS – REDUCING THE “WE – THEY”
  CULTURE OF CONFRONTATION
• INCREASE BELONGINGNESS, REDUCE
  ALIENATION
• IN INDIA, THE CONCEPT OF TRUSTEESHIP
  MOOTED BY MAHATMA GANDHI WHERE
  EMPLOYERS AND WORKERS JOINTLY HOLD
  AN ENTERPRISE IN TRUST FOR SOCIETY
      HOW CAN WORKERS
        PARTICIPATE ?
• IN THE VARIOUS SEGMENTS OF THE
  BUSINESS
• AS INDIVIDUALS OR IN GROUPS
• PARICIPATION WILL HAVE MEANING IF
  THEY ADD VALUE IN TERMS OF
            QUALITY
            COST
            EFFICENCY
    FORMS OF PARTICIPATION
•   COLLECTIVE BARGAINING
•   INFORMATIVE
•   CONSULTATIVE
•   ASSOCIATIVE
•   ADMINISTRATIVE
•   DECISIVE
 COLLECTIVE BARGAINING
• PARTICIPATION OF THE COLLECTIVE
  OF WORKERS, ie TRADE UNIONS IN
  SHARING THE GAINS OF THE
  BUSINESS
• IT IS TRULY NOT A “WORKING
  TOGETHER” FEELING SINCE THERE IS
  AN ELEMENT OF CONFRONTATION
  INVOLVED
         INFORMATIVE
• SHARING OF INFORMATION RE:
  PRODUCTION, BALANCE SHEET OF
  THE COMPANY, COMPETITION,
  MARKETS, CUSTOMER REQUIREMENT
• SHARING OF INFORMATION IS THE
  FIRST STEP IN PARTICIPATION SINCE
  THE WORKERS BECOME AWARE OF
  THE VARIOUS ASPECTS OF BUSINESS
         CONSULTATIVE
• WORKERS’ REPRESENTATIVES ARE
  CONSULTED ON VARIOUS FACETS OF
  EMPLOYMENT SUCH AS WELFARE AND
  SAFETY
• JOINT SAFETY COMMITTEE - ALSO HAS
  LEGAL SANCTION IN THE FACTORIES ACT
• JOINT CANTEEN COMMITTEE
• JOINT PRODUCTION COMMITTEE
• PRIMARILY ADVISORY ROLE
        ASSOCIATIVE AND
        ADMINISTRATIVE
• JOINT MANAGEMENT COUNCILS ARE
  EMPOWERED TO TAKE UNANIMOUS
  DECISIONS WHICH THE MANAGEMENT HAS
  TO IMPLEMENT
• COUNCIL CAN ALSO CHOOSE THE METHOD
  OF IMPLEMENTATION OF A DECISION
• THIS TYPE OF PARTICIPATION INVOLVES A
  HIGHER DEGREE OF DELEGATION OF
  AUTHORITY BY THE MANAGEMENT TO
  JOINT BODIES
           DECISIVE
• HIGHEST DEGREE OF PARTICIPATION
• LARGE AREAS OF DECISIONMAKING
  ARE BROUGHT UNDER THE PURVIEW
  OF JOINT COUNCILS
• THE COUNCILS NOT ONLY DECIDE
  LINE OF IMPLEMENTATION BUT ARE
  ALSO WATCHDOG ON THE
  MANAGEMENT
    THE LEGAL ASPECT OF
       PARTICIPATION
• FACTORIES ACT, 1948 - SETTING UP
  OF JOINT SAFETY COMMITTEES
• INDUSTRIAL DISPUTES ACT, 1947 -
  SETTING UP OF WORKS COMMITTEES
• CONSULTATIVE IN NATURE
• SUCCESS DEPENDS ON THE
  MANAGERIAL STYLE OF THE
  ORGANISATION
 PARTICIPATION IN REALITY
• AS AN INDIVIDUAL :
    - GIVING SUGGESTIONS THROUGH
      A SUGGESTION SCHEME

   - PARTICIPATING IN KAIZEN
     UNDER TQM

   - PRODUCT / CUSTOMER
     CHAMPION
  PARTICIPATION [ CONTD]
• AS PART OF A GROUP :
    - SMALL GROUP ACTIVITIES UNDER TQM

   - AUTONOMOUS TEAMS
          BENEFITS :
       FASTER RESPONSE

      LESS LAYERS OF SUPERVISION

      TEAM SYNERGY
 DIRECTOR ON THE BOARD
• EXCEPT FOR PUBLIC SECTOR
  COMPANIES, HAVE NOT TAKEN ROOT
• A DIRECTOR REPRESENTS THE
  INTERESTS OF THE SHAREHOLDERS
  OR MAJOR LENDERS
• UNLESS WORKERS ARE SIGNIFICANT
  SHAREHOLDERS, A WORKER
  DIRECTOR WILL NOT CONTRIBUTE
  MEANINGFULLY
   BENEFITS OF WORKERS’
      PARTICIPATION
• REDUCES ALIENATION
• HARNESSES THE ENERGY OF A
  LARGE NUMBER OF EMPLOYEES TO
  IMPROVE PERFORMANCE
• ENHANCES BELONGINGNESS
• REDUCES CONFLICT BETWEEN
  MANAGEMENT AND WORKMEN
WHY PARTICIPATION DOESNOT
        SUCCEED
• PARTICIPATION IN THE TRUE SENSE
  IS DELEGATION OF AUTHORITY,
  HENCE POWER
• MANAGEMENTS DO NOT WANT TO
  SHARE EFFECTIVE POWER
• MULTIPLICITY OF TRADE UNIONS
• DIVERGENT OBJECTIVES AMONG THE
  KEY PLAYERS
     PARTICIPATION NOT A
      SUCCESS [CONTD]
• WORKERS - ACHIEVEMENT OF JOB
  SECURITY AND BETTER WAGES
• MANAGEMENT - MAXIMISING PROFIT
  THROUGH INCREASED PRODUCTION
  AND LOWER COST
• GOVERNMENT : CLOSER ASSOCIA –
  TION BETWEEN LABOUR AND
  MANAGEMENT, AND INDUSTRIAL
  PEACE
 WORKERS’ PARTICIPATION –
   THE GERMAN MODEL

• THEY HAVE TWO LEVELS OF
  PARTICIPATION
    ENTERPRISE LEVEL
    PLANT LEVEL

• GUARANTEED BY FEDERAL LAWS
     ENTERPRISE LEVEL
• CODETERMINATION ACT OF 1951 AND
  1976 GOVERN THIS
• PROVIDE FOR TWO STRUCTURES
    SUPERVISORY BOARD [SB]
    MANAGEMENT BOARD [MB]
• SUPERVISORY BOARD HAS EQUAL
  NOS OF MANAGEMENT AND
  EMPLOYEE REPRESENTATIVES PLUS
  ONE INDEPENDENT MEMBER
SUPERVISORY BOARD [CONTD ]
• MANAGEMENT MEMBERS ELECTED
  BY SHAREHOLDERS
• EMPLOYEE MEMBERS ELECTED BY
  EMPLOYEES
• FUNCTIONS :
   - DISTRIBUTION OF DIVIDENDS
   - RIGHT TO ELECT THE MB
   - CONSIDER MERITS OF MAJOR
     BUSINESS PLANS PUT UP BY MB
        PLANT LEVEL
• SETTING UP WORKS COUNCILS BY
  WORKS CONSTITUTION ACT 1952
• EXCLUDES STATE OWNED
  UNDERTAKINGS AND SHIPPING AND
  AIR TRANSPORT INDUSTRIES
• COUNCIL MEMBERS HAVE THREE YRS
  DURATION
• IT IS AN INDEPENDENT BODY
    PLANT LEVEL [CONTD]
• RIGHTS OF PARTICIPATION IN 3 AREAS
• CODETERMINATION RIGHTS – REGULATION
  OF WORK, WORKING HOURS AND BREAKS,
  LEAVE, INSTALLATION OF TECHNICAL
  DEVICES, SAFETY REGULATIONS, WELFARE
  SERVICES, FIXING OF JOB AND PIECE
  RATES, LAYING DOWN NEW REMUNERA –
  TION METHODS, SELECTION GUIDELINES
  AND VOCATIONAL TRAINING
    PLANT LEVEL [CONTD]
• CO-OPERATION RIGHTS - RIGHT TO
  APPEAL TO LABOUR COURTS IF
  MANAGEMENT DOES NOT PAY HEED TO ITS
  OBJECTIONS TO CERTAIN MANAGEMENT
  DECISIONS, eg TRANSFER
• RIGHT OF INFORMATION – ONCE IN 3
  MONTHS, MANAGEMENT MUST REPORT TO
  WC THE ECONOMIC SITUATION OF THE
  UNDERTAKING

				
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