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Module 3: Performance Management and Industrial Relations

20237m

List and explain the objectives of workers' participation in management.

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Workers' Participation in Management (WPM)

Concept: Workers' Participation in Management means sharing decision-making power with workers through their representatives at various levels. According to Keith Davis, “Participation is mental and emotional involvement of persons in group situation which encourages them to contribute to group goals and share responsibility.”

It implies association of workers in managerial functions – not just consultation but influence. It ranges from information sharing to joint decision-making.

Objectives of Workers' Participation in Management:

1. Industrial Democracy: To give workers a democratic right to influence decisions affecting their work life – passing from authoritarian to participative management.

2. Increase Productivity and Efficiency: Better ideas and suggestions from workers who know shop-floor problems lead to improved productivity, quality and reduced wastage. Sense of ownership motivates higher output.

3. Improve Industrial Relations and Peace: Participation creates mutual trust, understanding and cooperation between labour and management, reducing strikes, grievances and disputes.

4. Motivate Workers and Boost Morale: Satisfies ego, self-esteem and self-actualization needs (Maslow). Workers feel valued, leading to higher job satisfaction and commitment.

5. Mutual Understanding: Reduces alienation, misunderstanding and communication gap. Management understands workers' problems, workers understand organizational constraints.

6. Development of Workers: Encourages self-expression, innovation, leadership and democratic leadership among workers, preparing them for higher responsibilities.

7. Reduce Resistance to Change: When workers participate in introducing new technology or change, acceptance is higher and resistance lower.

8. Better Decisions: Utilizes collective wisdom – decisions become more balanced, practical and acceptable as both technical and human aspects are considered.

Forms in India (for reference): Suggestion schemes, Works Committee (1947), Joint Management Councils (1958), Shop/Plant Councils, Board-level participation (1970), Quality Circles.

Conclusion: WPM aims to convert employees from hired hands to partners. Success depends on genuine faith of management, strong unions, education of workers and conducive climate. When implemented sincerely, it achieves both economic (efficiency) and moral (democracy) goals.

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