This document discusses worker participation in management. It defines industrial democracy as giving workers representation in decision making similar to political democracy. Worker participation means giving workers influence over managerial decisions through information sharing, joint consultation, and suggestion schemes. The objectives of worker participation include improving efficiency, establishing harmonious relations, developing social education, and maximizing profits. It discusses the growth of the concept in India and its current status with implementation in over 1,400 units covering 25 million workers.

1. Worker’s Participation in
Management
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2. • John Leitch has defined Industrial Democracy as “the organization of
any factory or other business institution into a little democratic state
with representative government which shall have both the legislative
and executive phases”.
• In the same manner as political democracy has converted subjects
into citizens, with right of self-determination and self-
government, industrial democracy converts the workers from the
mere subjects obeying the orders of the employers, into citizens of
the industrial world, with a right to self-determination and self-
government, that is, representative participation in making rules and
enforcing them. This is known as Workers’ Participation in
Management.
• Workers’ participation in management means giving scope for
workersto influence the managerial decision-making process at
different levels by various forms in the organization. The principal
forms of workers’ participation are information sharing, joint
consultation, suggestion schemes, etc.

3. • There can’t be an industrial peace so long as the workers
remain alienated from the organization , so long as the
workers don’t have a sense of commitment and attachment
with in the organization.
• Growth of professionalism industrial democracy and
development of the principles of social justice has leads to
the growth of the concept of participative management.
• The concept of participation means sharing of decision
making power by rank and file of an industrial organization
through proper representatives at all levels of management
in the entire range of managerial action.
• Participation means the mental and emotional involvement
of a person on a group of situation which encourage him to
contribute for achieving objectives of the organization.

4. Features of worker’s participation in management
• The main objective of worker’s participation in management
is to achieve organizational effectiveness and the satisfaction
to the employees.
• It increase the scope of employee’s share of influence in the
decision making process.
• The is a effective distinction between the worker’s
participation and collective bargaining in the sense that while
the worker’s participation is based on mutual trust, mutual
problem solving and hearing and sharing where as collective
bargaining is based on power-play negotiations and tactics.
• It leads to promote mutual understanding between the
management and workers leading to industrial harmony.
• It leads to creation of sense of commitment to the decisions
among workers as they happened to be a party to the
process of decision making

5. Scope of Workers’ Participation in Management
 Information Sharing. Share the information! That says it all. According to this
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view, participation takes place when the management solicits the opinion of
workers before taking a decision. The management ultimately takes the decision.
Workers are given a say or an opportunity to influence decisions, they play a
passive role in the process of decision-making, but have no final say in the
matter.
 Sharing Decision-Making. This school holds that participation of an individual
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in something occurs when he actively takes part. The focus here is that there
must exist taking part actively. Workers sit with the representatives of
management to take important decisions particularly on matters affecting the
workers. Workers may be members of Works Committees, Joint Management
Council, etc. along with the representatives of management. The decisions are
taken through mutual discussions between the representatives of the workers
and those of the management.
 Self-control. The essential feature of self-control (or management) is that
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management and workers are not visualised as two distinct groups but as active
members with equal voting rights. Participation in Yugoslavia is an example of
self-control.

6. Significance of Workers Participation
 Higher Productivity: The increased productivity is possible only when there
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exists fullest co-operation between labour and management. It has been found that
poor labour management relations do not encourage the workers to contribute
anything more than the minimum desirable to retain their jobs. Thus participation of
workers in management is essential to increase industrial productivity.
 Greater Commitment: An important prerequisite for forging greater individual
2.
commitment is the individual’s involvement and opportunity to express himself.
Participation allows individuals to express themselves at the work place rather than
being absorbed into a complex system of rules, procedures and systems. If an
individual knows that he can express his opinion and ideas, a personal sense of
gratification and involvement takes place within him. I am sure you will agree that
participation increases the level of commitment and the employees start relating to
the organization.
 Reduced Industrial Unrest. Industrial conflict is a struggle between two
3.
organized groups, which are motivated by the belief that their respective interests
are endangered by the self-interested behavior of the other. Participation cuts at
the very root of industrial conflict. It tries to remove or at least minimize the diverse
and conflicting interests between the parties, by substituting it with cooperation,
homogeneity and common interests. Both sides are integrated and decision arrived
at are mutual rather than individual

7. Significance of Workers Participation (contd..)
 Improved Decisions. I am sure that you will agree that communication is
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never a one way process, Also note that it is seldom, if ever, possible for
managers to have knowledge of all alternatives and all consequences related to
the decisions which they must make. Because of the existence of barriers to the
upward flow of information in most enterprises, much valuable information
possessed by subordinates never reaches their managers. Participation tends to
break down the barriers, and makes the information available to managers. To
the extent such information alters the decisions, the quality of decisions is
improved.
 Human Resource Development. Participation provides education to workers
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in the management of industry. It fosters initiative and creativity among them. It
develops a sense of responsibility. Informal leaders get an opportunity to
reinforce their position and status by playing an active role in decision-making
and by inducing the members of the group to abide by them.
 Reduced Resistance to Change. Last but not the least, it should be noted
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that changes are arbitrarily introduced from above without explanation.
Subordinates tend to feel insecure and take counter measures aimed at
sabotage of changes. But when they have participated in the decision making
process, they have had an opportunity to be heard. They know what to expect
and why. Their resistance to change is reduced

8. Pre–requisites for the success of
Workers’ Participation in Management
 The overall climate in the organisation should be favourable to workers’
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participation. There should be an attitude of mutual co-operation, confidence, and
respect for each other. Management, in particular, should be genuinely receptive to
the labour’s ideas so that the latter can perceive that their ideas are useful.
 There must be sufficient time to participate before action is required; because
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participation in emergent situations is hardly advisable.
 The subject of participation must be relevant to the enterprise; it must concern
III.
something in which both the parties are interested, otherwise the parties are likely
to become indifferent to the process of participation.
 The workers’ representatives should have the ability such as intelligence and
IV.
knowledge, to participate. It is not appropriate to ask workers to participate in
technical aspects of the machinery; but they can participate successfully in
problems relating to their work. The contributions made by the workers should be
worthwhile and should benefit the workers in the long run. It should be in the
interest of the management as well! Now maintaining that balance is not that easy
but that is what experience is all about!!

9. Pre–requisites for the success of
Workers’ Participation in Management
 There must be effective system of communication. Both labour’s representatives and
management’s representatives must be able to understand each other and express
themselves without any inhibitions. The whole idea after all is to be able to speak out
one’s mind and listen to the counterpart’s point of view!
 Participation should not adversely affect the status or authority of the
VI.
participants. Managers will not participate, if their authority is threatened. Workers will
hesitate in participating if they think that their status is being adversely affected. In fact
for worker’s participation to be effective, both the management and the labour should
get rid of their ego problems and share their ideas. I am sure that you will agree that no
relationship can continue for long if there are ego clashes. Both the parties should make
efforts to come closer rather than moving away.
 The financial cost of participation should always be lesser than the benefits-both
VII.
economic and non-economic-of participation. We all can understand the economic
aspect but as far as the non-economic part is concerned, it will depend on the
organizations. What I can tell you at this point of time is that the pains and pleasures
should be matched! The pleasures should be much more as compared to the pains.
 VIII. Participation should be within the framework of overall policy of the enterprise in
question .I am sure you will agree that every decision has to be in line with the Vision
and Mission statements of the organization.

10. Objectives of worker’s participation
• Worker’s participation is an instrument for
improving efficiency of enterprises and establishing
harmonious industrial relations.
• It is a device for developing social education for
effective solidarity among the working community.
• The expectation of workers from participation is to
achieve security for employment, better wages and
bonus etc.
• The employee interest in participation is to
maximize profit
• So broadly the objectives may be economic, social
or psychological.

11. Growth & Development of workers participation in management in
India
• The concept of workers participation in India dates back to 1920
when Mahatma Gandhi had suggested that both the workers and
management should share in the prosperity of the business.
• Employer should not regards sole owner of mills and factory of
which they may trustees.
• There should be a perfect relationship of friendship and
cooperation among them.
• Capital and labour should be supplementary to each other.
• TISCO,Indian Aluminum work, Belur.
• The Delhi cloth and general mill ltd also introduced workers
participation in management 1938 .
• The Royal commissioner of labour (1929-31) recommended the
formation of works committee which plays an useful part in Indian
industrial system.

12. • BOMBAY Industrial Relation act 1946 (apply to textile industries in
Maharashtra and Gujarat), and ID Act 1947.
• Royal commission also reported in general for work committee.
• The royal commission for labour also suggested that for cultivation of
industrial harmony and avoiding misunderstanding and setting dispute.
• In the first five year plan it was suggested for constitution of joint
committee for consultation at all level of management .
• ID ACT 1947, joint management council 1957, the industrial policy
resolution 1948.
• The 2nd 5yr plan explained the philosophy of worker-management
relationship outlined that A socialist society is built up not solely on
monetary incentives but on idea of service to the society. The creation of
industrial democracy is therefore a prerequisite in the establishment of a
socialist society.
• For the successful implementation of the plan, increased association of
labour with management is necessary.
• Govt. of India set up a specific study group to see the progress and problem
in working of worker’s participation in May 1957. the recommendations of
the study group were accepted by 15th Indian labour conference in July
1957.

13. Present Status
• The concept of workers participation was implemented
by 1400 units by dec1975 and it covered 25million
workers across all industries and sectors.
• Later on a new schemes of worker’s participation in
management in commercial and service organization in
the public sector was announced.
• In 1977 high power expert committee was set up by
government to suggest worker’s participation in the
share capital and management of companies.
• Then under Janata Govt a committee was set up in sept
1977 under the chairmanship of Ravindra Verma, then
union minister of labour
• The committee was submitted its report in 1979