WORKERS’

PARTICIPATION IN
MANAGEMENT
(WPM)
PREPARED BY,
SARITHA S R
2ND SEM MBA
ROLL NO 34
 INTRODUCTION
The concept of workers
participation in management is
considered as a mechanism where
workers have a say in the decision-
making process of an enterprise
formally
 DEFINITION
According to Davis,
 Mental and emotional involvement
in a group situation
contribute to goals and share
responsibilities
 OBJECTIVES
To promote increased productivity
To provide better understanding to
employees about their roles
To satisfy the workers’ social and esteem
needs
To strengthen labour management co-
operation
To develop social education
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An ideological point of view to
develop self-management
An instrument for improving
efficiency
To build the most dynamic human
resources
To build the nation
 METHODS OF PARTICIPATION
 Participation at the board level
 Participation through ownership
 Through complete control
 Through staff or work councils
 Through joint councils and committees
 Through collective bargaining
 Through job enlargement and job enrichment
 Through suggestion teams
 Through quality circles
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Empowered teams
Total quality management
Financial participation
 IMPORTANCE OF WPM
1. MUTUAL UNDERSTANDING:
 Participation brings the two parties closer and makes
them aware of each other’s problems.
 Hence a better understanding and mutual trust can be
created between employer and workers.
2. HIGHER PRODUCTIVITY
 Cooperation between management and labour helps to
increase production and profits of industry
 Improves employee motivation and job satisfaction
 Higher productivity leads to lower costs
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3.INDUSTRIAL HARMONY
 Helps to reduce industrial disputes and to improve
workers’ loyalty
 Improves peace in industry
4.INDUSTRIAL DEMOCRACY
 Need for outside intervention between employer and
employees is eliminated
 Workers are free from exploitation
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5.LESS RESISTANCE TO CHANGE
Workers often resist change due to fear and ignorance
Change is ultimately in their own interest
6.CREATIVITY AND INNOVATION
 Encourages workers to think and take initiative
Talent and ability can be capitalised
Highly competent employees can be spotted and given
prevention
Helpful in training and developing future executives
 FORMS OF WPM
 Work committees
 Joint Management Councils
 Joint Councils
 Shop Councils
 Suggestion scheme
 Worker directors
 Co-partnership
 WORK COMMITTEES
Work committees deal with matters of
day to day functioning at the shop floor level. Work
committees are concerned with:
 Conditions of work
 Amenities
 Safety and accident prevention
 Adjustment of festivals and national holidays
 Administration of welfare and fine funds
 Educational and recreational activities
 Promotion of thrift and savings
 Implementation and review of decisions
 Work committees are,
 Representatives of employers and employees
 The aim is to promote measures for maintaining
harmonious relations
 To sort out differences of opinion
 100 or more workers is required to constitute a
work committee
FUNCTIONS
 Discussion of conditions of work
 To promote measures for securing and preserving
amity and good relations
 STRUCTURE
PRESIDENT VICE-PRESIDENT
(nominee of the (workers’
employer) representative)

SECRETA
RY

JOINT
SECRETARY
 JOINT MANAGEMENT
COUNCILS
ILC made certain
recommendations
 WPM should be set up in selected
undertakings
 Representatives of employers, workers,
and government
 OBJECTIVES

 To increase the association

 To improve the operational efficiency
 To provide welfare facilities
 To educate workers
 To satisfy the psychological needs
 JOINT COUNCILS
 It is meant for the whole unit
The tenure of the joint councils is for two
years
The Chief Executive of the unit becomes its
Chairman
The joint councils will meet once in four
months
 It is by the process of consensus
 SHOP COUNCILS
Represents each department or a shop in
an unit
It will consist of an equal no. of
representatives of employers and
workers
Decisions are to be taken on the basis of
consensus
 SUGGESTION SCHEME
 Workers are invited and encouraged to offer
suggestions for improving the working of the
enterprise
 Any worker can write his suggestions and put it into
the box
 All the suggestions are scrutinized by the suggestion
committee
 Good suggestions are accepted for implementation
and suitable rewards are given.
 WORKER DIRECTORS
 One or two representatives of workers are
nominated on the board of directors
 Full fledged and highest form of WPM
 CO-PARTNERSHIP
 Workers are made shareholders in the company
 They may elect their representatives to the Board of
Directors
 Share the company’s profit in the form of dividend
 WPM IN INDIA
The State shall take steps, by suitable
legislation, or in any other way, to secure the
participation of workers in the management of
undertakings, establishments or other organisations
engaged in any industry
 REASONS FOR THE
LIMITED SUCCESS
The inherent conflicts b/w employees and
management
The general belief that the workers are
inferior to management
The system is management dominated
Managers are averse to share responsibility
 SUGGESTIONS FOR THE
SUCCESS OF WPM
 There should be mutual trust and faith among all
the parties concerned
 There should be progressive management in the
enterprise
 Should recognize the obligations and responsibilities
towards workers and trade unions
 There should be strong, democratic and
representative unions
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There should be closely and mutually

formulated objectives for participation by trade
unions and the management
All parties concerned towards participative
management
There should be effective communication b/w
workers and management
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Both the parties should develop a favorable

attitude towards the schemes of participative
management
Should provide training to all the parties
Should be conscious of the benefits of the
schemes
 CONCLUSION
Workers are the part of an organizations
success.
 Keep mutual trust and faith among all parties
concerned and ensure participation of trade unions
is effective.
 Government of India took the initiative and
appointed workers’ representatives.
 O U
K Y
A N
T H