HRM%20Employee%20Participation

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HRM Employee Participation

• Prof R K Singh
• AIMA CME

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Employee Participation

• The participation resulting from practices which
  increases the scope for employees share of
  influence in decision making at different tiers
  of organizational hierarchy with concomitant
  assumption of responsibility.
• -The International Institute of Labour Studies.

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Implications of Workers Participation

• 1. Workers have ideas which can be useful
• 2. Upward Communication facilitates sound
  decision making. Workers may accept decisions
  better if they participate in them.
• 3. Workers may work more intelligently if they
  are informed about the reasons for and the
  intention of decisions that are taken in a
  participative atmosphere.

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Implications of Workers Participation

• 4. Workers may work harder if they share in
  decisions that affect them.
• 5. Workers participation may foster a more
  co-operative attitude amongst workers and
  management thus raising efficiency by improving
  team spirit and reducing the loss of efficiency
  arising from industrial disputes
• 6. Workers participation may act as a spur to
  managerial efficiency.
• - International Labour Organization.

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5 Interpretation of Participations

• 1. Informative Participation
• Sharing of information with workers regarding,
• Economic position of the firm
• State of the market
• Production Sales programme
• Work Methods
• Balance Sheet
• Expansion Plans
• The workers have no right to scrutinize the
  information provided by Management.

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5 Interpretation of Participations

• 2 Consultative Participation
• This involves a higher degree of sharing of views
  of the workers and giving them a chance to
  express their views on various issues concerning
  Work, Workplace, Working Conditions, Market
  Standing, Financial Status etc.
• Here, the joint council of workers and Management
  works as an advisory body only. Management may or
  may not accept the suggestions.

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5 Interpretation of Participations

• 3. Associative Participation
• Here the council is not purely advisory. The
  Management is under a moral obligation to accept
  and implement the unanimous decisions of the
  council.
• 4. Administrative Participation
• Here there are a greater degree of sharing
  authority and responsibility of managerial work
  and allows workers a little more autonomy in
  exercising administrative and supervisory powers
  in respect of welfare, safety, benefits, rewards,
  etc

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5 Interpretation of Participations

• 5. Decisive Participation
• This is the highest form of participation where
  decisions are taken jointly on matters relating
  to production, safety, welfare, etc.

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Works Committees 1947

• The Industrial Disputes Act, 1947provides for
  the setting up of Bipartite Works Committees as a
  scheme of workers participation in management
  which consist of representatives of employers and
  employees.
• The aim is to promote measures for maintaing
  harmonious relations in the work place and to
  sort out differences of opinion on work related
  issues. E.g. Work Condition and Benefits.

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Structure of Works Committee

• President Employer Nominee
• Vice-president Workers Representative
• Secretary
• Joint Secretary
• Tenure 2 Years
• Total Strength 20
• Examples TISCO, Indian Aluminium Works at Belur,
  Hindustan Lever.
• Compulsory for every undertaking employing 100 or
  more workers.

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Joint Management Councils (JMCs) 1958, 2nd Five
Yr Plan)

• Objectives
• To increase the association of employers and
  employees by promoting cordial industrial
  relations
• To improve the operational efficiency of the
  workers
• To provide welfare facilities
• To educate workers so that they are well prepared
  to participate in these schemes and
• To satisfy the psychological needs of workers

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Functions of JMCs

• To be consulted on matters like,
• -Standing Orders,
• -Retrenchment,Closure,
• -Reduction of Operations etc.
• To receive information, to discuss and offer
  suggestions
• To shoulder administrative responsibilities like
  maintaining Welfare Measures, Safety Measures,
  Training Schemes, Working Hours, Payment of
  Rewards

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Worker Director (1970)

• Following the recommendations of Administrative
  Reforms Committee the Government has accepted
  that representatives of workers be taken on the
  Board of Directors of Public Sector Undertakings.
• It was introduced in Hindustan Antibiotics Ltd.,
  Hindustan Organic Chemicals Ltd., National Coal
  Mines Development Corporation, BHEL etc.

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Shop Joint Councils (1975 77)

• This envisaged the setting up of,
• Shop Councils at the Shop/Departmental level and
• Joint Councils at the enterprise level.
• These were to be introduced in manufacturing and
  mining units employing 500 or more
  workers-whether in public, private or
  co-operative sector.

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The New Scheme (1984)

• A new scheme of Workers Participation in
  management was prepared and notified in 1984
  after reviewing the progress of various schemes
  in industry.
• Its applicable to all central Public Sector
  Enterprises
• It was decided to allow workers to participate at
  the Shop level, the Plant level, and the Board
  level.
• The mode of representation of Workers
  Representatives was to be determined by
  consultations with Union/s.

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The New Scheme (1984)

1. A wide range of work related issues (Personnel,
   Welfare, Plant Management, Operations, Financial
   Matters, etc.) were brought within the ambit of
   the Councils.
2. The Ministry of Labour constituted a Tripartite
   Committee to review the working of the scheme and
   to suggest corrective measure.

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The 1990 Bill

• The existing non-statutory schemes of Workers
  Participation have failed to give meaningful
  participation to workers at the enterprise level.
• To remedy the situation the Government introduced
  a Bill in the parliament on 25th May, 1990 to,
• Offer Meaningful Three-tier participation to
  workers in Management at three levels,
• -Shop Floor
• -Enterprise and
• -Board Level

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The 1990 Bill

• 2. The proportionate share of worker
  representatives and the persons representing
  other workers in the Board of Management in every
  undertaking is put as 13 and 12 respectively.
• 3. Formulate schemes specifying detailed criteria
  regarding nomination of representatives from
  workers, the power of Shop Floor Councils and
  Establishment Council have also been extended to
  cover a wide range of Production, Operational,
  Economic, Financial, Personnel, Welfare and
  Environmental issues.

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The 1990 Bill

1. Provide for the principle of secret ballot for
   choosing representatives of workers
2. Provide for rules for monitoring the program
3. Extend the coverage of the scheme to all
   corporate establishments.