Benefits of Workers Participation in Management
Both ascending and descending participation are possible ways for employees to engage in management. An chance for workers to engage in decision-making at a higher level is provided via ascending participation.
Workers’ participation in management might take the following forms:
Committee on Works, I
Cooperative Management Councils (II)
III) Cooperative Boards;
- IV) Councils for Shops; and
Councils of Units (V).
Committees of Works:
Employers’ and workers’ representatives may form work committees under the Industrial Disputes Act of 1949 as a way for workers to participate in management decisions. In any project that employs 100 or more workers, the Act allows for these bodies.
These organisations are intended to resolve disagreements over issues of mutual concern to employers and workers, as well as to advance policies for preserving amicable working relationships. These organisations, known as joint committees, are also permitted under the Bombay Industrial Relations Act, 1946, but only in units with an officially recognised union. In non-union workplaces, employees choose their own delegates.
Functions:
Consultation is the function of these joint/works committees. In addition to discussing workplace amenities like water supply for drinking, canteen services, medical care, safe working conditions, welfare fund administration, recreational and educational opportunities, and the promotion of frugal living and saving, they also handle issues related to lighting, ventilation, temperature, and sanitation.
In addition to commenting on issues of mutual interest or concern and making an effort to resolve any significant differences in opinion about these subjects, the works committee’s responsibility will be to secure and maintain excellent relations and amity between employers and employees.
Structure:
A President, a Vice-President, a Secretary, and a Joint Secretary are the office bearers of the works committees. Employer nominees are represented by the Vice-President, who represents the workers. They have a two-year term in office. These bodies shouldn’t have more strength than twenty overall. It is required of the workers to choose their own representatives.
Certain companies, such as Hindustan Lever, Indian Aluminium Works at Belur, and Tata Iron and Steel Company, had active committees. Without regard to the legal requirements, the managements in each of them have formed joint committees.
Joint Management Councils, or JMCs, are section II.
Joint management councils made up of labour and management representatives were suggested to be established under the Second Five Year Plan. A research committee was sent by the Indian government in 1957 to examine worker participation plans in nations such as Yugoslavia, the United Kingdom, France, and Belgium.
During the Indian Labour Conference’s (15th) session in 1957, the research group’s report was reviewed and many suggestions were made.
It is recommended that some businesses establish voluntary participation policies for their employees in management plans.
The specifics of employees’ involvement in management schemes should be discussed by a subcommittee made up of representatives from the government, employers, and labour unions. The projects that this Committee chooses to go on with introducing worker engagement in management systems in an experimental manner initially.
Objectives:
Joint Management Councils seek the following goals:
I Strengthening ties between employers and employees in order to foster friendly working relationships;
(ii) Increasing the workers’ operational effectiveness;
To provide them with welfare amenities;
(iv) Providing employees with the necessary training to enable them to take part in these programmes;
(v) Fulfilling employees’ psychological requirements.
As per the suggestions of the Indian Labour Conference, a tripartite subcommittee was established, which established specific standards for choosing which businesses might implement JMCs.
What they are is:
I The department has to employ 500 people or more;
(ii) A balanced history of labour relations should exist;
(iii) A well-functioning labour union ought to exist;
(iv) Establishing JMCs requires the support of both management and employees.
In the private sector, employers need to be members of the premier employers’ association.
(vi) Membership in one of the Central federations is required for trade unions.
The subcommittee noted that even in cases where these requirements are not satisfied, JMCs may be established if both employers and employees agree to do so.
Along with these suggestions, the subcommittee addressed JMC membership, worker representative nomination procedures, and other matters. Each party must negotiate the specifics of these issues with the other parties. For the purpose of establishing JMCs, a draught model was created. In order to provide guidance on all issues relating to the Scheme, the subcommittee was eventually reorganised as the “Committee on Labour-Management Co-operation.”
Eligibility Standards for Unit Selection in JMCS Establishment:
When choosing 48 units to introduce the joint management council plan, a subcommittee of the fifteenth Indian Labour Conference established the following standards:
Paper, cement, mining, plantations, engineering, chemicals, tobacco, and cotton and jute textiles were the private sector businesses that were chosen.
Shipyards, ports, mining, printing, electrical projects, railroad workshops and yards, posts and telegraphs, and transportation workshops were among the industries in the public sector.
I A thriving, well-established trade union should be part of the endeavour.
(ii) The employers’ and workers’ unions’ willingness to experiment in a cooperative spirit should be present in both sides.
(iii) At least 500 workers must be involved in the endeavour.
(iv) A labour union should be affiliated with one of the central federations, and the employer in a private enterprise ought to be a member of one of the top employers’ organisations.
(v) A fair history of labour relations should be maintained by the corporation.
Functions:
Key roles performed by JMCs include the following:
I To be consulted on issues such as reductions in operations, rationalisation, retrenchment, closure, and standing orders, among other things.
(ii) Acquiring knowledge, conversing, and making recommendations.
(iii) To take on administrative duties such as upholding safety and welfare regulations, operating hours, training programmes, and incentive payments.
Participation of Workers in the 1975 Management Plan:
In keeping with its 20-point economic plan, the Indian government on October 30, 1975, unveiled a plan for worker engagement in management that included the formation of Shop Councils and Joint Councils. According to the plan, joint councils and shop councils will be established in the mining and manufacturing sectors for companies with 500 or more workers in the public, private, and cooperative sectors.
Working conditions and welfare, general discipline, productivity, absenteeism, safety protocols, and overall departmental and shop efficiency were all areas covered by the plan that included worker engagement in decision-making.
This new scheme’s key components are:
Decisions made by a Shop Council or the Joint Council must be made “by consensus and not by process of voting.”
The purpose of these councils is distinct and they are not statutory like JMCs.
(3) The methods for making choices are “consensus and time-bound implementation”. As a result, the plan attempts to reduce the likelihood of direct intervention by others. One month is allotted for the choices to be put into action.
(4) The plan allows workers to participate at the shop floor level; apart than that, there are no significant differences between the framework and WCs. and JMCs.
(5) It enables the management and the workers to communicate and share information in both directions.
(6) The simple renaming of the programme from “participation of workers in management” to “participation of workers in industry” increases employee acceptance since the latter term is expected to allay some of their concerns and reservations about the former.
(7) The plan aims to achieve the three main goals of the reform of industrial democracy: restoring individual human rights at work, strengthening social and political freedom (including the ability to join any union without being forced to do so), and creating a new industrial structure that is functionally appropriate for the nation’s economy.
(III) Collective Bodies:
The joint councils are for the whole unit, and the only people who may participate are those who are actively involved in the organisation. The combined councils are in office for a two-year period. The unit’s Chief Executive assumes the role of Chairman. The Vice Chairman is proposed by members of the Workers’ Council. Secretary appointments are made by the joint council. The Secretary has the responsibility of carrying out the duties assigned to the council.
The frequency of the joint council meetings varies throughout units; some may meet every month, every quarter, etc.; but, they will always meet once every four months. Consensus is used to make decisions during joint council sessions, and management has one month to put the choices into effect. Principal departments of the federal and state governments carried out the programme. In 1976, the government increased the councils’ powers.
Every industrial facility that employs 500 people or more is required to establish a Joint Council for the whole facility.
The following might be the Joint Council’s primary features:
I The joint council will only include members who are really involved in the unit.
(ii) The council will run its affairs for a full two years.
(iii) A vice-chairman will be chosen by the council’s worker members, with the chief executive of the organisation serving as the joint council’s chairman.
(iv) The joint council will designate a council member to serve as its secretary. The premises of the undertaking/establishment should offer the necessary facilities for the proper performance of functions by the Secretary.
(v) The council will have a two-year term when it is constituted; however, if a member is nominated to replace a casual vacancy during the midterm of the council, they will hold their position for the remainder of the council membership.
(vi) The joint council will convene at least once every three months.
(vii) Unless specifically indicated in the decision itself, all joint council decisions must be implemented within a month and must be based on consensus rather than a vote procedure. They also have binding effect on employers and employees.
Joint Council Roles:
The joint council should handle issues pertaining to:
I The unit’s overall maximum output, efficiency, and fixation of productivity standards for both humans and machines.
(ii) Shop council duties that affect a different shop or the unit as a whole.
(iii) Unresolved issues arising from shop council meetings.
(iv) Issues pertaining to the unit or the plant in its whole, including the observance of production objectives; more precisely, tasks delegated to a shop council at the departmental or shop level but pertinent to the unit as a whole will be addressed by the joint council.
(v) Employee skill development and training facilities that are suitable.
(vi) Giving prizes to employees who make insightful and original proposals.
(vii) Creating the working laws and holiday schedules.
(viii) Best practises for raw material use and final product quality.
(ix) Overarching health, safety, and welfare protocols for the plant unit.
Shop councils (IV):
A unit’s shops or departments are represented by the shop council. Employer and employee representatives will make up an equal number of each shop council. Personnel from the relevant unit must be nominated by the management as the employers’ representatives.
The workers representative will come from inside the relevant department or store. Employers may choose to calculate each council’s membership count after consulting with the recognised union. However, the overall number of members may not usually go beyond twelve.
The shop council will reach decisions by agreement rather than by casting votes. Within a month, management must put the choices into action. The shop council will serve for two years throughout its duration. At least once a month, shop council members get together. At least once a month, management submits a nomination for the chairman. While workers’ representatives choose the vice-chairman of the council, management appoints the shop council’s chairman.
The employer, in collaboration with the organization’s authorised trade unions and workers, decides how many shop councils should be formed. Referred to joint council for review and approval are the decisions made by a shop council that impact another shop.
Principal Elements:
The following are the primary characteristics of the shop council-based participatory management scheme:
I The employer in every industrial unit with 500 or more workers must form a Shop Council for each department or shop, or one council for several departments or shops, taking into account the total number of workers across those departments or shops.
(ii) (a) The number of delegates from employers and labour unions in each council should be equal.
(b) Individuals from the relevant unit must be nominated by management to serve as the employer’s representatives.
(c) Every worker representative must be a member of the workforce that is really employed by the relevant department of the shop.
(iii) The employer shall determine the number of shop councils and departments to be attached to each council of the undertaking or establishment in a manner best suited to local conditions, consulting with the recognised union, the various registered trade unions, or the workers, as the case may be.
(iv) The employer may choose to decide the number of members of each council by consulting with the recognised union, registered unions, or employees in a way that best suits the local circumstances existing in the unit; in general, the total number of members may not exceed
(v) A shop council may, by agreement rather than via vote, decide all issues; nevertheless, any party may bring unresolved issues to the joint council for review.
(vi) Unless specifically specified differently in the decision, all parties to a shop council decision must implement it within a month, and the council must receive a compliance report from the parties involved.
(vii) Any decisions made by a shop council that affect other shops or the enterprise as a whole shall be brought before the joint council for deliberation.
(viii) After it is established, a shop council will run for two years. For the remainder of the council’s term, any member nominated or elected in the midterm to replace a casual vacancy will remain a member of the council.
(ix) The council will convene whenever it is required, but at least once a month.
(x) The management shall choose a member of the shop council to serve as chairman, and the worker members of the council shall choose a vice-chairman from among themselves.
The Shop Councils’ roles include:
To enhance the output, productivity, and general efficiency of the shop department, the shop councils need to focus on the following issues:
I Support management in reaching annual/monthly production goals.
(ii) Increased output, productivity, and efficiency, including the reduction of waste and the best possible use of labour and equipment capacity.
(iii) Specifically pinpoint locations with poor productivity and implement the required shop-level remedial actions to get rid of pertinent contributing causes.
(iv) Investigate and suggest actions to reduce departmental and shop absenteeism.
(v) Precautions.
(vi) Support the department/shop in upholding general discipline.
(vii) The physical workspace, including lighting, ventilation, noise levels, dust, and other elements that lessen tiredness.
(viii) Welfare measures should be implemented in order to manage the department or store efficiently.
(ix) Ensure that management and employees are properly in contact with one another, especially when it comes to issues with production schedules and the status of hitting goals.
(V) Unit Councils:
Inspired by the program’s achievements in mining and manufacturing facilities, a new programme including workers’ management engagement in public sector commercial and service organisations with significant public dealings was unveiled on January 5, 1977. The Plan called for the formation of Unit Councils in organisations with at least 100 employees.
Among the organisations are hotels, restaurants, hospitals, transport services by air, sea, rail, and road; ports and docks; ration shops; schools; research institutions; municipal and milk distribution services; trust organisations; all financial institutions; banks; insurance companies; post offices and telegraph offices; Food Corporation; State Electricity Boards; Central and State Warehousing Corporations; State Trading Corporations; Mines and Minerals Trading Corporations; irrigation systems; tourist organisations; and establishments for public entertainment and training organisations of the Central and State Governments.
The plan calls for councils at the unit level. These councils have the responsibility of removing obstacles to operations and enhancing current procedures.
The primary responsibilities of the councils are to establish the framework necessary to achieve maximum efficiency, to improve customer service in situations where employees at the operational level have direct and immediate contact with customers, to increase productivity, to eradicate corruption and theft, and to establish awards for individuals who have demonstrated their ability in these domains.
Key Elements of the New Plan:
The following would be the key components of the workers’ involvement plan via unit level councils:
I In general, each unit employing 100 or more workers may form a unit level council made up of the workers and management of the organisation or service to discuss daily issues and find solutions; however, if necessary, a composite council may be formed to serve more than one unit, or a department-specific council may be formed to suit the specific needs of an organisation or service.
(ii) The number of delegates from management and labour must be equal in every unit council. Though their overall number may not exceed, the management should decide the actual number of members after consulting with the recognised union, registered unions, or the workers in a way that best suits the local circumstances existing in a unit or organisation.
Not trade union functionaries who may not be employed by the unit, but qualified and seasoned employees from a variety of areas, regardless of their cadre, affiliation, or position, would need to be nominated.
(iii) Individuals from the relevant unit should designate themselves to be the management’s representatives.
(iv) The management shall choose how best to respond to local circumstances after consulting with the recognised union, registered unions, or employees, as the case may be.
The number of unit councils and departments that will be affiliated with every organization/service council.
(v) A unit council will make all of its decisions by consensus rather than by casting votes; nevertheless, any party may bring unresolved issues to the joint council for review.
Unit council decisions are to be executed by the relevant parties within a month, unless otherwise specified in the decision.
(vii) The management must set up appropriate procedures for the taking and keeping of meeting minutes, and appoint one of its representatives as secretary. This person will also be responsible for reporting actions done in response to decisions made at later council meetings.
(viii) Referrals to the joint council for deliberation and conclusions about decisions made by a unit council that impact another unit within the organisation or service overall.
(ix) After it is established, a unit council will run for two years. For the remainder of the council’s term, any member nominated or elected in the midterm to replace a casual vacancy will remain a member of the council.
(x) The council will convene at least once a month, but more often as needed.
(xi) The management will designate someone to serve as the council chairman. From among themselves, the council’s worker members will choose a vice chairman.
principal duties
The following might be the Unit Councils’ primary duties:
I To establish the framework necessary to achieve maximum efficiency, maximum output and productivity, including the elimination of waste and idle time, improved customer service in situations where operational staff members and consumers interact directly and immediately, and optimal manpower utilisation through collaborative efforts to enhance the work system.
(ii) Locate areas where services are consistently poor, insufficient, or subpar, and take the appropriate remedial action to remove the underlying causes in order to develop better operating procedures.
To research absenteeism and provide recommendations for mitigating it (iii).
(iv) To put an end to theft and all corruption, and to set up a rewards system to that end.
(v) The recommendations for bettering the physical workspace—lighting, ventilation, noise, dust, cleanliness, interior design, positioning of customer service stations, etc.
(vi) To guarantee that management and employees have appropriate, two-way communication, especially about issues pertaining to the services to be provided, the establishment of output objectives, and the status of reaching these targets.
(vii) To suggest and enhance welfare, health, and safety measures to ensure the unit operates effectively.
(viii) To talk about anything else that could be relevant to the unit’s performance enhancement in order to guarantee greater customer service.
Board Level Involvement:
A number of organisations allow for employee representation on the board of directors. To serve on the Boards, employees choose a representative. A plan for appointing employee representatives as board directors was presented by the Indian government.
As a result, some public sector initiatives proposed employee representatives to serve on their boards. Workers applauded the move, while management expressed concerns about the program’s likelihood of success.
The idea of staff involvement at the board level was also implemented by many international corporations. When the employee representatives get training in management techniques and board duties, this programme will have served its intended goal.
Factors Contributing to Slow Growth:
The delayed development and inadequate operation of the project have been attributed to a number of factors.
Among them are:
I The disinterest and even antagonism between employers and employees; the former saw joint management committees (JMCs) and works committees as a replacement for trade unions, while the latter saw them as competitors.
(ii) Inadequate comprehension of the idea, goals, and advantages of the programme by employers and workers
(iii) Forward-thinking employers consider the bodies unnecessary, despite a lengthy history of having a positive system of consultation and communication with their staff.
(iv) Employees take part in management inadvertently via their delegates. Consequently, their innate skills and attributes have been mostly underutilised.
(v) Time and energy have been wasted, confusion and duplication of effort have resulted from the establishment of several joint bodies, such as works committees, joint management councils, production committees, proposal committees, canteen committees, safety committees, etc.;
(vi) The system has had some difficulty operating because there isn’t a powerful trade union, or because there are several trade unions and inter-union competition;
(vii) The lack of adequate instruction and training in interpersonal communication, cooperation, and involvement on the part of the workers’ representatives on these organisations;
(viii) Despite their support, the central organisation leaders have not shown enough enthusiasm to enthuse their affiliates about the national conference and committee meetings plan. It is unrealistic to expect joint management councils to perform successfully in an environment where there is a lack of a grievance redressal system, a procedure for the recognition of a trade union, and amicable employee-employer relations;
(ix) The workers’ interest in these committees tends to wane when the proposals and recommendations made by these bodies are not implemented promptly;
(x) The establishment of a friendly and cooperative environment for the joint management councils was necessary to guarantee that each party would trust the other and uphold its rights.
Level
(1) Instructive Engagement:
Members have the right to obtain information and express opinions on issues of broad economic concern at the first stage of participation, which is often instructional and associative in nature.
(2) Input-Based Consultation:
The next stage of involvement is consultative, when members discuss issues impacting their well-being with management. There is a greater degree of viewpoint exchange involved. However, it is up to the management to decide whether or not to take the opinions and ideas of the staff.
(3) Involvement in Administration:
The next step up is administrative involvement, which offers a larger percentage of power and accountability in the management tasks.
(4) Assisting in Decisions:
When employees are given the chance to participate in decision-making processes, it is the greatest degree of engagement. As the name implies, there is total decision-making authority and maximal authority delegation at this level.
It is important to emphasise that, usually speaking, involvement in management is understood to include simple general consultation on issues pertaining to employee welfare, safety, etc. The management has the final duty.
Every other issue, such as pay, bonuses, and so forth, is covered by collective bargaining and is not included in the overview of the global workers’ involvement plans. Individual complaints are also not covered by it.