Worker’s participation in management is related with Industrial
relation of Paper 2 of UPSC Commerce and Accountancy optional
Article 43A of the Constitution of India deals with 'Participation of workers in management of industries' and falls under Part IV - Directive Principles of State Policy
"The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organisations engaged in any industry".
5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production, welfare etc. is called decisive participation.
Introduction of Worker’s participation in management (WPM)
Worker’s participation
in management (WPM) is essentially a step in promoting industrial democracy.The
concept of workers’ participation in management is based on Human Relations
approach to Management which brought about a new set of values to labour and
management. Traditionally the concept of Workers’ Participation in Management
(WPM) refers to participation of non-managerial employees in the
decision-making process of the organization. Workers’ participation is also
known as ‘labour participation’ or ‘employee participation’ in management.
Article 43A of the Constitution of India deals with 'Participation of workers in management of industries' and falls under Part IV - Directive Principles of State Policy
"The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organisations engaged in any industry".
The Industrial Disputes Act 1947 section
3 created a right of participation in joint work councils to
"provide measures for securing amity and good relations between the
employer and workmen and, to that 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".
Definition
According to
International Institute of Labour Studies
WPM is the
participation resulting from the practices which increase the scope for
employees’ share of influence in decision-making at different tiers of
organizational hierarchy with concomitant (related) assumption of
responsibility.
As per ILO
The main implications
of workers’ participation in management as summarized by ILO:
1.Workers have ideas
which can be useful;
2.Workers may work more
intelligently if they are informed about the reasons for and then intention of
decisions that are taken in a participative atmosphere.
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 the responsibility of achievement.
Objectives of Workers
Participation in Management
The objectives of
workers’ participation in management are as follows:
1.To raise level of
motivation of workers by closer involvement.
2.To provide
opportunity for expression and to provide a sense of importance to workers.
3.To develop ties of
understanding leading to better effort and harmony.
4.To act on a device to
counter-balance powers of managers.
5.To act on a panacea
for solving industrial relation problems.
Levels of Participation
Workers’ participation
is possible at all levels of management; the only difference is that of degree
and nature of application. For instance, it may be vigorous at lower level and
faint at top level. Broadly speaking there is following five levels of
participation:
1. Information
participation: It ensures that employees are able to receive information
and express their views pertaining to the matters of general economic
importance.
2. Consultative participation: Here works are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests at the option of management and employees’ views are only of advisory nature.
3. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees.
2. Consultative participation: Here works are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests at the option of management and employees’ views are only of advisory nature.
3. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees.
4. Administrative
participation: It ensure greater share of works in discharge of managerial
functions. Here, decision already taken by the management come to employees,
preferably with alternatives for administration and employees have to select
the best from those implementation.
5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production, welfare etc. is called decisive participation.
Limitations of
Participation:
Participative
management suffers from many limitations, these are:
1. Technology and
organisations today are so complex that specialised work-roles are required,
making it difficult for people to participate successfully if they go very far
beyond their particular environment. This means that low-level workers can
participate successfully in operating matters, but they usually have difficulty
participating in policy matters.
2. Another issue is an
employee’s right not to participate there is no evidence that participation is
good for everybody. Many people do not want to be bothered with participation.
3. Another problem is
that participative situations can be used covertly to manipulate employees.
This manipulation is not necessarily done by the management. It may be by the
union or by undercover cliques led by members skilled in group dynamics, the
social engineers of consent.
4. The feudalistic
concept of the master and the servant is still prevalent among industrial
workers, especially in India. Workers have an innate feeling that they are born
to serve and not to rule. Participative management, naturally, is of little
interest to such workers.
5. The role of trade
unions in promoting participative management is far from satisfactory. Most of
the unions indulge in politicking and have little time to think about
participation and development work.
6. The unwillingness of
the employers to share power with the worker’s representatives, the disinterest
of the workers and the perfunctory attitude of the Govt, towards participation
act as strolling shocks in the way of promotion of participative management.
Worker Participation in
Management in India:
Participative
management has been an integral part of the Indian labour policy. This is due
to the emphasis on industrial democracy. That a number of legislative measures
have been taken to provide necessary structure and form for managers and
workers to interact with each other.
The purpose is as much
to prevent the conflict as that of resolving the same with minimum bitterness.
Several studies on WPM in India have concluded that participative forms of
statutory and voluntary one have failed in Indian industries.
Some of the reasons are
given below:
1. Mere introduction of
participative structure does not ensure desired result.
2. Legislative measures
or legalistic attitude has its own limitation.
3. Industrial
environment is not quite conducive for effective WPM in India.
4. A great deal of
misconception exist to differences in attitude and approach of persons at
different levels of management and among union leaders on WPM. For e.g. some
perceive WPM as a tool of management, while to some other WPM is a non-financial
form of extending democratic practices to industry.
To a large number of
union leaders WPM is a socialist alternative to the institutions for resolution
of conflicts under capitalism.
5. Lack of clarity on
the objectives of scheme and workable form of such participation.
In short a change of
“mind set” is called for making WPM effective in India.
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