Why and how is WPM important in organizations

1. Presented by:Pooja Bhayani – 05
Shruti Poddar – 24

2. WPM
Worker’s participation is a system
where workers and
management share important
information with each other and
participate in decision taking.

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WPM encompasses the
following:-
It provides scope for employees in
decision-making of the organization.
The participation may be at the shop
level, departmental level or at the top
level.
The participation includes the
willingness to share the responsibility
of the organization by the workers.
It is conducted through the mechanism
of forums which provide for association
of workers representatives.

4. Definition of WPM
A system of communication
and consultation, either formal
or informal, by which
employees of an organization
are kept informed about the
affairs of the undertaking and
through which they express

5. 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.

6. Participation in Management gives
the worker a sense of importance,
pride and accomplishment; it
gives him the freedom of
opportunity for self-expression; a
feeling of belongingness with the
place of work and a sense of
workmanship and creativity.

7. •
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Objective
To elevate worker’s status in
industry.
To promote democratic
practice.
Increase productivity with joint
efforts.
Promote cordial relations.

8. Importance of WPM
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Mutual understanding
Higher productivity
Industrial harmony
Industrial democracy
Less resistance to change
Creativity & Innovation

9. Forms of participation
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Consultative participation
Informative participation
Administrative participation
Associative participation
Decision / Decisive
participation

10. 1. Consultative
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Involves a high degree of sharing of
views of the members and giving
them an opportunity to express their
feelings.
Members are consulted on matters
such as:– Welfare amenities (work, health)
– Adoption of New Technology
– The problems emanating from it

11. 2. Information
•
It ensures that employees are able to
receive information and express their
views pertaining to the matters of:– General economic situation.
– The state of market, production &
sales programmes.
– Organisation & general running of
the undertaking.
– The annual balance sheet & profit &
loss account statement & connected

12. 3. Administrative
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Involves a greater degree of
sharing of authority and
responsibility of the management
functions.
It ensures greater share of
workers’ participation in discharge
of managerial functions.
Employees take part in decisions,

13. •
Members are given little for
autonomy in the exercise of
administrative and supervisory
powers with regard to –
– Welfare measures
– Supervision of safety measure
– Operation of vocational training
& apprenticeship schemes
– Preparation of schedules of
working hours, breaks, holidays

14. 4. Decision
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Highest form of participation.
Maximum delegation of authority and
responsibility of managerial function.
Decisions mutually taken.
Matters concerned are
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Economic,
Production
Welfare
Financial and
Administrative policies

15. 5. Associative
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Extension of consultative
participation
Management here is under the
moral obligation to accept and
implement the
unanimous(agreed) decisions of
the employees.

16. Levels of Participation
1.
2.
3.
4.
5.
6.
7.
8.
Collective Bargaining
Works Committees
Shop / Department Council
Joint Councils
Board Representations
Workers Ownership of Enterprise
Quality Circles
Kaizen

17. 1. Collective Bargaining
ILO has defined,
"Collective bargaining as, negotiation a
bout working conditions and terms of e
mployment between an employer and
a group of employees or one or more
employee, organization with a view to
reaching an agreement wherein the
terms serve as a code of defining the
rights and obligations of each party in

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Collective :-because both the
employer and the employee act as
a group rather than as individuals.
Bargaining :because the method of reaching an
agreement involves proposals and
counter proposals, offers and
counter offers and other
negotiations.

19. •
Thus collective bargaining:
– is a continuous process which aims at
establishing
stable
relationships
between the parties involved.
– is
a collective process in which
representatives
of
both
the
management
and
employees
participate.
– not only involves the bargaining agree
ment, but also involves the implement
ation of such an agreement.

20. •
Loopholes in Collective
Bargaining
The process of CB cannot be called
WPM in its strongest sense as in
reality;
CB is based on the crude concept of
exercising power for the benefit of
one party.
– WPM, on the other hand, brings both
the parties together and develops
appropriate mutual understanding and
–

21. 2. Works Committees
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Under the Industrial Disputes Act, 1947,
every establishment employing 100 or
more workers is required to constitute a
works committee
It consists of equal number of
representatives from the employer and the
employees.
The main purpose of this committee is to
provide measures for securing and
preserving amity and good relations

22. Functions of Work
Committee
•
Works committee deals with matters of
day-to-day functioning at the shop floor
level. Works committees are concerned
with:
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Conditions of work such as ventilation, lighting
and sanitation.
Amenities such as drinking water, canteens,
dining rooms, medical and health services.
Educational and recreational activities.
Safety measures, accident prevention
mechanisms etc.

23. Loopholes in Works
Committees
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Lack of competence and interest on
the part of workers’ representatives.
Employees consider it below their
dignity and status to sit alongside
blue-collar workers.
Lack of feedback on performance of
Works Committee.
Undue delay and problems in

24. •
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3. Shop / Department
Council
Government of India on the 30th of
October 1975 announced a new
scheme in WPM.
In every Industrial establishment
employing 500 or more workmen,
the employer shall constitute a
shop council.
Shop council represents each
department or a shop in a unit.

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The employers’ representatives will
be nominated by the management
and must consist of persons within
the establishment.
The workers’ representatives will be
from among the workers of the
department or shop concerned.
The total number of employees may
not exceed 12.
All decisions taken will be

26. Functions of Shop Council
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Assist management in achieving
monthly production targets.
Improve production and efficiency,
including elimination of wastage of
man power.
Study absenteeism in the shop or
department and recommend steps to
reduce it.
Suggest health, safety and welfare
measures to be adopted for smooth
functioning of staff.

27. 4. Joint Councils
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The joint councils are constituted for the
whole unit, in every Industrial Unit
employing 500 or more workers.
Only such persons who are actually
engaged in the unit shall be the
members of Joint Council.
A joint council shall meet at least once
in a quarter.
The chief executive of the unit shall be
the chairperson of the joint council.
The vice-chairman of the joint council

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It for a period of two years.
The decisions will be binding on both
parties and will be implemented within
one month.
In 1977 the above scheme was
extended to the PSUs like commercial
and service sector organizations
employing 100 or more persons.
The organizations include hotels,
hospitals, railway and road transport,
post and telegraph offices, state

29. Functions of Joint Council
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Fixation of production norms
Work planning
Achieving production targets
Training
Reward policy
Creative suggestions
Health
Security

30. 5. Board Representation
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This would be the highest form of
industrial democracy.
The workers’ representative on the
Board can play a useful role in
safeguarding the interests of
workers.
The worker can serve as a guide
and a control element.
The worker can prevail top

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Loopholes of Board
Representation is
Focus of workers’ representatives
different from the focus of the remaining
members of the Board
The worker tends to become alienated
from the workers.
The worker may be less effective with the
other members of the Board in dealing
with employee matters.
Due to the differences in the cultural
,educational backgrounds and behaviour,
the
employees’ representative may feel inferio
r to the other members, and may feel

32. 6.Worker’s Ownership Of
Enterprise
This involves making the workers’
shareholders of the company by
inducing them to buy equity shares.
• In many cases, advances and financial
assistance in the form of easy
repayment options are extended to
enable employees to buy equity shares.
Examples of this method are available in
the manufacturing as well as the service
sector.
• Advantage: Makes the workers
committed to the job and to the
organization.
•

33. 7.Quality Circles(QC)
• It consists of seven to ten people from the same
work area who meet regularly to define,
analyze, and solve quality and related problems
in their area.
• These circles require a lot of time and
commitment on the part of members for regular
meetings, analysis, brainstorming etc
• Most QCs have a definite life cycle – one to
three years. Few circles survive beyond this limit
either because they loose steam or they face
simple problems.
• QCs can be an excellent bridge between

34. Advantages of QC
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Employees become involved in
decision-making, acquire
communication and analytical
skills and improve efficiency of
the work place.
Organization gets to enjoy higher
savings-to-cost ratios.
Chances of QC members to get
promotions are enhanced

35. 8. Kaizen
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It is also called as “Continuous
Improvement”
It is a policy of constantly introducing
small incremental changes in a
business in order to improve quality
and/or efficiency.
This approach assumes that employees
are the best people to identify room
for improvement, since they see the
processes in action all the time.

36. Features of Kaizen
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Improvements are based on many, small
changes rather than the radical changes that
might arise from Research and Development
As the ideas come from the workers
themselves, they are less likely to be radically
different, and therefore easier to implement
Small improvements are less likely to require
major capital investment than major process
changes
The ideas come from the talents of the
existing workforce, as opposed to using R&D,
consultants or equipment – any of which
could be very expensive
All employees should continually be seeking

37. WPM in India
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In 1920 Mahatma Gandhi had
suggested that workers contributed
labour and brains, while
shareholders contributed money to
enterprise, and that both should,
therefore share in its prosperity.
The influence of Mahatma Gandhi
bore fruit and for the first time Joint
Consultation was adopted in the

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Workers’ participation in
Management Bill, 1990 was
introduced in Parliament which
provided scope for upliftment of
workers.
The Industrial Policy Resolution had
suggested that labour should be
consulted in all matter concerning
industrial production & works
committees .
The Joint Management Councils
were established in 1950 which

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Reasons for failure of WPM in
India:
Lack of initiative & interest.
Ideological differences.
Delay in implementation.
Political unionism.
Narrow scope of participative forum
with limited issue.
Not decisive participation.

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Employers resist the
participation of workers.
Dual roles of workers’
spokesman and a co-manager.
“Born to serve and not to rule”.
Lack of lower-level
participation.
Unwillingness of the employer to
share powers

41. Decisions affecting WPM
Three groups of managerial decisions
affect the workers of any industrial
establishment and hence the workers
must have a say in it
• Economic Decisions – Economic
Decisions like methods of
manufacturing, automation, shutdown,
lay-offs, mergers.
• Personnel Decisions – Personnel
Decisions like recruitment and
selection, promotions, demotions,
transfers, grievance settlement, work

42. Workers' Participation at
TISCO
• Since Tata Iron and Steel Company are the
pioneers in establishing joint consultation in India,
it is worthwhile to look at workers' participation at
TISCO.
• Closer association of employees with management
at TISCO began in 1919 and was formalized in
August 1956.
• The purpose was to promote increased
productivity, provide a better understanding to the
employees of their role and importance, and to
satisfy the urge for self expression. The scheme as
set up at TISCO consist of a three
– Tiered system with joint department councils (JD

43. The specific functions of these three bodies
were as follows:
– JDCs were “to study operational results
and production problems, advice on the
steps deemed necessary
to promote and rationalize production, imp
rove productivity and discipline and econo
mize cost. Promotion of welfare and
safety, encouragement of suggestions and
improvement of working conditions also
fell within their purview.”
– JWCs were “to discharge special function
of reviewing every month the working of

44. • In order to ensure that these
committees did not overlap the
functions of other committees, separate
task groups were formed.
• Special courses were offered to prepare
both management and union
representatives to effectively utilize the
facility.
• TISCO's experience with workers'
participation has been satisfactory.
From 1957 to the middle of 1972 JDCs

45. Workers' Participation at
BHEL
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BHEL stands for “Bharat Heavy
Electrical Limited”
According to BHEL, WPM is the
process, by which authority and
responsibility of managing
industry are shared with workers.

46. Significance of WPM in BHEL
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To improve the efficiency of
enterprise.
To establish harmonious
industrial relation.
To attain industrial peace and
harmony.
To give the workers and

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To increase the productivity level
with mutual understanding.
Easy to implement the change
may by possible by WPM.
Information sharing and decision
making.
Improving the self control
degree.

48. Factors considered by BHEL in
WPM
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Subject matter
of participation
Level of
participation
Time factor
Extend of
participation
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Industrial
practices
Past experience
data
Degree of
possibility
No. of workers

49. BHEL’s principle for WPM
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Experience
Possibilities
People building and mutual
development.

50. BHEL’s ways & methods of
WPM
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Maximum adopt the method of
:– QC
Quality Circle
– TQM
Total Quality Management

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Pre-requisites for successful
participation:Strong & Democratic union.
Mutually agreed objectives which
should be clearly defined &
complementary.
Feeling of participation at all levels.
Favourable attitude of all.
Training of participants is essential.

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Free flow of communication and
information.
Participation of outside trade union
leaders to be avoided
Strong and effective trade unionism.
Workers’ education and training.
Lack of positive attitude.
Trade unions and government needs
to work in this area.
Trust between both the parties.

53. •
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How can WPM be more
effective???
Employer should adopt a progressive
outlook. They should consider the
industry as a jointendeavour in which
workers have an equal say. Workers
should be provided and enlightened
about the benefits of their participation
in the management.
Employers and workers should agree
on the objectives of the industry. They
should recognize and respect the rights
of each other.

54. •
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There should be effective
communication between workers
and management and effective
consultation of workers by the
management in decisions that have
an impact on them.
Participation should be a continuous
process. To begin with, participation
should start at the operating level of
management.
A mutual co-operation and
commitment to participation must be
developed by both management and