Workers Participation In Management – Definition, Features, Objectives, and Importance

Workers participation in management is an essential ingredient of 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 labor and management. Traditionally the concept of Workers Participation in Management 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. In Germany it is known as co-determination while in Yugoslavia it is known as self-management. The International Labour Organization has been encouraging member nations to promote the scheme of Workers’ Participation in Management.

Workers’ participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making.

Definitions of  Workers Participation In Management

• 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.
• According to Walpole, 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.
• In the words of Mehtras “Applied to industry, the concept of participation means sharing the decision-making power by the rank and file of an industrial organization through their representatives, at all the appropriate levels of management in the entire range of managerial action”.
• Clegg says, “It implies a situation where workers representatives are, to some extent, involved in the process of management decision making, but where the ultimate power is in the hands of the management”.
• According to Dr. Davis, “it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them”.
• A clear and more comprehensive definition of WPM is given by the International Labour Organization (ILO). According to the ILO: “Workers’ participation may, broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations to more institutionalized forms such as the presence of workers’ members on management or supervisory boards or even management by workers themselves”.

The concept of workers’ participation in management 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.

Features of  Workers Participation In Management

• Participation means mental and emotional involvement rather than mere physical presence.
• Workers participate in management not as individuals but collectively as a group through their representatives.
• Workers’ participation in management may be formal or informal. In both the cases it is a system of communication and consultation whereby employees express their opinions and contribute to managerial decisions.

Levels  of  Workers Participation In Management

There can be 5 levels of Management Participation or WPM:

1. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matter of general economic importance.
2. Consultative importance: Here workers are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests with the top-level management, as employees’ views are only advisory in nature.
3. Associative participation: It is an extension of consultative participation as management here is under the moral obligation to accept and implement the unanimous decisions of the employees. Under this method the managers and workers jointly take decisions.
4. Administrative participation: It ensures greater share of workers’ participation in discharge of managerial functions. Here, decisions already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation.
5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relating to production, welfare etc.

Characteristics  of  Workers Participation In Management

• Participation implies practices which increase the scope for employees’ share of influence in decision-making process with the assumption of responsibility.
• Participation presupposes willing acceptance of responsibility by workers.
• Workers participate in management not as individuals but as a group through their representatives.
• Worker’s participation in management differs from collective bargaining in the sense that while the former is based on mutual trust, information sharing and mutual problem solving; the latter is essentially based on power play, pressure tactics, and negotiations.
• The basic rationale tor worker’s participation in management is that workers invest their labour and their fates to their place of work. Thus, they contribute to the outcomes of organization. Hence, they have a legitimate right to share in decision-making activities of organization.

Objectives  of  Workers Participation In Management

• To establish Industrial Democracy.
• To build the most dynamic Human Resources.
• To satisfy the workers’ social and esteem needs.
• To strengthen labour-management co-operation and thus maintain Industrial peace and harmony.
• To promote increased productivity for the advantage of the organization, workers and the society at large.
• Its psychological objective is to secure full recognition of the workers.

Importance  of  Workers Participation In Management

• Unique motivational power and a great psychological value.
•  Peace and harmony between workers and management.
• Workers get to see how their actions would contribute to the overall growth of the company.
• They tend to view the decisions as `their own’ and are more enthusiastic in their implementation.
• Participation makes them more responsible.
• They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas.

Essential conditions for  of  Workers Participation In Management

The success of workers portion in management depends upon the following conditions.

1. The attitude and outlook of the parties should be enlightened and impartial so that a free and frank exchange of thoughts and opinions could be possible. Where a right kind of attitude exists and proper atmosphere prevails the process of participation is greatly stimulated.
2. Both parties should have a genuine faith in the system and in each other and be willing to work together. The management must give the participating institution its right place in the managerial organization of the undertaking and implementing the policies of the undertaking. The labor, on the other hand, must also whole heartedly co-operate with the management through its trade unions. The foremen and supervisory cadre must also lend their full support so that the accepted policies could be implemented without any resentment on either side.
3. Participation should be real. The issues related to increase in production and productivity, evaluation of costs, development of personnel, and expansion of markets should also be brought under the jurisdiction of the participating bodies. These bodies should meet frequently and their decisions should be timely implemented and strictly adhered to. Further,

• Participation must work as complementary body to help collective bargaining, which creates conditions of work and also creates legal relations.
• There should be a strong trade union, which has learnt the virtues of unit and self-reliance so that they may effectively take part in collective bargaining or participation.
• A peaceful atmosphere should be there wherein there are no strikes and lock-outs, for their presence ruins the employees, harms the interest of the society, and puts the employees to financial losses.
• Authority should be centralized through democratic management process. The participation should be at the two or at the most three levels.
• Programs for training and education should be developed comprehensively. For this purpose, Labor is to be given education not to the head alone, not to the heart alone, not to the hands alone, but it is dedicated to the three; to make the workers think, feel and act. Labor is to be educated to enable him to think clearly, rationally and logically; to enable him to feel deeply and emotionally; and to enable him to act in a responsible way.

Forms of Workers Participation in Management

Workers’ participation in management involves various forms and structures that allow employees to have a say in decision-making processes and the overall management of an organization. The choice of the specific form depends on the organization’s culture, industry, legal framework, and its goals. Here are some common forms of workers’ participation in management:

• Works Councils: Works councils are formal bodies within an organization consisting of elected employee representatives. These councils focus on various workplace issues, such as working conditions, safety, and employee welfare. Works councils often exist in many European countries and play a crucial role in providing a channel for employees to communicate their concerns and recommendations to management.
• Employee Representatives on Boards: In some countries, employees may have the right to elect representatives to serve on a company’s board of directors. This is known as co-determination, and it allows employees to influence strategic decisions and corporate governance.
• Joint Consultation Committees: Joint consultation committees are forums for discussion between management and employee representatives. These committees provide a platform for addressing various workplace issues and reaching consensus on certain matters.
• Collective Bargaining: Collective bargaining involves negotiations between employee unions and management regarding employment terms and conditions. These negotiations often cover wages, benefits, working hours, and other workplace policies.
• Quality Circles: Quality circles are small groups of employees who come together to discuss and propose solutions to quality-related issues and process improvements within the organization. This form of participation emphasizes employee involvement in continuous improvement.
• Suggestion Schemes: Organizations may establish suggestion schemes that allow employees to submit ideas and suggestions for process improvements or cost-saving measures. Employees are often rewarded for valuable suggestions.
• Employee Stock Ownership Plans (ESOPs): ESOPs are programs that provide employees with the opportunity to acquire company shares. When employees become shareholders, they have a vested interest in the company’s success and may participate in some decision-making processes.
• Employee Surveys and Feedback Systems: Organizations can implement regular employee surveys and feedback mechanisms to gather input on various aspects of the workplace, including job satisfaction, work environment, and potential areas for improvement.
• Open-Door Policy: Some organizations adopt an open-door policy in which employees are encouraged to approach higher management with their concerns, suggestions, or grievances. This informal approach promotes direct communication.
• Employee Involvement in Goal Setting: Employees can be involved in setting performance goals and objectives. When they participate in the goal-setting process, they are more likely to be motivated and committed to achieving those goals.
• Employee Representatives in Safety Committees: Safety committees often include employee representatives who focus on promoting a safe and healthy working environment. These representatives collaborate with management to identify and address safety issues.
• Employee Participation in Decision-Making: In some organizations, employees have the opportunity to participate in various decision-making processes, ranging from project planning to strategy development. Their input can be sought and valued at different levels of the organization.