workers participation management

7/29/2019 workers participation management

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Workers Participation in Management


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The Genesis Derived from a Latin word participare

participation means sharing/taking part

Sharing is a bilateral process and it has

A functional aspect, and A motivational aspect

Workers Participation in Management highlights

both these aspects well

The functional aspect is a role in deciding

The motivational aspect is the natural

involvement after deciding


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WPMThe Soul of IR

CB vs. WPM : Heart vs. Soul

Collective Bargaining is based on Conflict or at

least the perception of Conflict Highlights need for synergy

A step in the Working Class Movement

WPM is based on Cooperation Highlights SYNERGY itself

A step in Management Effectiveness


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Objectives of WPM

Pie enlarging NOT Pie splitting

Gain sharingimproving profitability

Future sharingimproving competitiveness

Power sharingPlacing Stockholders and

Stakeholders on a even keel

Self actualisationavailing opportunity to

contribute meaningfully


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Some Models of WPM

British system ofJoint Consultation

Yugoslav system ofWorkers Council

German system ofCo determination

The Japanese system ofQuality Circles

The American system ofQWL (QUALITY OF WORKLIFE)


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The Quality of Work life

QWL coined by Louis Davis in 1972

The basic idea:

Promote individual learning and development

Provide individuals with influence and control

over what they do and how they do it

Make available to the individuals interesting andmeaningful work as a source of personal

satisfaction and a means to value personal rewards


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Defining WPM

A system of communication and

consultation, eitherformal or informal, by

which employees of an organisation arekeptinformedabout the affairs of the

undertaking and through which they express

their opinion andcontribute to themanagement decisions


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How WPM works?

KF Walker Model

Planning

OrganizingMotivating

Controlling

Managerial

Hierarchy

UnionH

I

E

R

A

R

C

H

Y

Area

of

Colle-ctive

Barga-

ining

Employee

Directors

WorksCouncil

Suggestion

Schemes

Doing Workers

Participative Supervision

and Job enlargement


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Forms of Participation

Informative

Information Sharing

Involving Consultative

Idea generating

Democratic functioning

Co deterministic

Joint decision making

Partnering


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Some Key Dimensionsin WPM(David Guest,1995)

Dimension Industrial Relation HRM/HRD

Psychological

contract

Behaviour

referent

Relations

Organisation

and design

Compliance

Norms, customs and

practices

Low trust, pluralist,

Collective

Formal roles, hierarchy,

Division of labour,

Managerial controls

Commitment

Values / Mission

High trust, unitarist,

Individual

Flexible roles,

Flat structure/teamwork

Autonomy, self-control


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WPM as a Bridge

Organisational Commitment has 3 aspects:

1. Identification with goals & values

2. A desire to belong to the Organisation

3. A willingness to display effort on behalf ofOrganisation

Union Commitment has the same 3 aspects

The key issue is Compatibility of Goals and Valuesof the Company and the Union in the eyes of theEmployee/worker

WPM bridges the Gap, while CB shows it


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The Commitment Matrix &

Behaviour Patterns

Commitment to ORGANISATION

t

oU

N

I

O

N

High / High

Common / integratedGoals & Values

Business Partnership

High /Low

Habitual Resistance

Low /High

Co-operation

Low / Low

Indifference


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The Missing Focus

Organisations view HRM and IRM as

EitherOr options

HRM focused on Individual

Industrial Relations focused on Collective

The new realism :

High emphasis on both HR & IR management


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Todays Workplace

The Mutual Gains Enterprise

Thomas A. Kochan & Paul Osterman (1994)


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Principles guiding the Mutual Gains Enterprise

Strategic level:

Supportive Business Strategies

Top Management Commitment

Effective voice for Human Resources in

Strategy making and Governance


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Functional level:

Staffing based on employment stabilisation

Investment in training and development

Contingent compensation that reinforces

cooperation, participation, and contribution


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Workplace level:

High standards of employee selection

Broad task design and teamwork

Employee involvement in problem solving

Climate of cooperation and trustA great place to work


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The history of partnering Workers

1884(UK): Labour Association for promoting cooperativeproduction amongst Workforce formed

It was set up as a propagandist committee to arouseworking men, and public opinion generally, to theimportance of the movement for making workerseverywhere partners in their workshops.

Renamed later asIndustrial Co-partnershipAssociation and again after the Word War-II as theIndustrial Participation Association

1989: Renamed again as

Involvement and partnership Association (IPA)


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The Post-War Divergence

During the War the Conflict model gained

ground and Unions became too powerful,

and feasted on Collective Bargaining The post-war IR in UK relied more on CB

whereas Germany & most of Europe

developed a Social partnership modelandrelied more on

Workers participation in Management


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Towards Industrial partnership

The IPA publication in 1992 enunciates newprinciples of partnership:

Partnership post1990s will not emphasise institutionalised

participation, nor a tripartite approach

The emphasis will be on Attitudes & Culture

It is now a question of building trust, recognising differences,

finding common ground, and applying key partnership

principles:

Commitment to organisational success

Respecting legitimacy of stakeholders in business


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Employment insecurity

A major threat to partnership Attitudes towards Job security is changing

Employers want more flexibility and the Employees

want more stability Employment security is a desirable framework for

having employee involvement /commitment

Concept ofEmployability as substitute for continued

Employmenthas arrived

Employers responsible for building capabilities in

employees to survive and sustain after Exit


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Information, Consultation & Co-determination

understanding the new dimensions

Information sharing isDirect Participation

The Cellnet philosophy (EThOS) explains:

1. Frank & open exchange of ideas, information &

knowledgeKey to effective Task management

2. Open & Clear communication is Everyones

responsibilityKey to Business success

3. By taking ownership of issues and problems,making commitments and deliveringKey to get

greatest contributions from People to Company


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Representative consultation mean systems of joint consultation,commonly referred to in India as Joint Councils for WPM

ICI philosophy explains the new outlook:

For sustaining the highest levels of competitiveness,

1. It is essential that all employees cooperate with each other to

understand the business, economic & social contextin which

they are asked to work, and

2. Have appropriate forums to influence decision makers at allrelevant management levels so that there is the best chance of a

well judged and full hearted contribution from every employee


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The great transformation

in representative consultation

In many countries, agenda for consultation is

driven by Lawsocial security & rights

Representatives are nominated / elected

During 1970s & 1980s the Joint Councils were

ineffectual, bureaucratic tea & toilets talk

shops contributing no value to business

Since 1990 concept ofPartnership council has

emerged to debate cutting edges of Business


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Co-determination meansRepresentation of the

employees voice at the decision making table

With the transformation of business ownership from

single owner to Stock holders, the employees havebecome the largest stakeholder

Growing recognition ofalignment of interestsof the

Firm and the employee-stakeholders Mutuality of interest among all stakeholders is

shifting the bargaining mind-set towards partnership


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A novel partnership journeyat Welsh Water and Blue Circle

A common Vision and the Goal

A cultural change program starting with the Managers

A systematic revision of reward, status and conditions

Business-focused consultative arrangements from the

shop-floor to the boardroommultiple MOUs

An agreed policy to manage employment security A major commitment to employee development and

training


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WPMthe Indian saga

The Works Committee under ID Act, 1947 The Directive Principles of State Policy under

Indian Constitution

Recommendations of the GOI Study Group & ILC

15th session (1957)Joint Management Councils The 2nd Five Year Plan recommendations for setting

upJoint Councils for Organisations employing 500or more people

GOI scheme forBoard representation (1971)

GOI scheme on WPMin 197520 point program

1975: DPSP amended & WPM inserted at S/43a


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WPMthe Indian saga

1977: The 1975 scheme extended to Service sector

employing 100 or more people

1978: Janata Govt. appointed TripartiteCommittee, recommended 3-tier structure for

participationBoard, Plant, Shopfloor

1983: WPM scheme for CPSUs introduced 1985-86: Union Budget opened Stock options for

employees (limited to 5%)


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The PWM Bill, 1990

An attempt to bring statutory force

The Bill proposes participation at all levels

In Cold storage due to lack of will to enact It has lost relevance under Globalization

PSUs have mostly complied & suffered due

to Unions extension of bargaining to WPM Deregulation is the order of the day


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Future of workers participation

In 1974 JRD said,

It is a thing which will come in due course,

in a much bigger way than it is today. It ishowever, a very difficult and delicate

subject which must be developed slowly,

systematically and methodically, learningfrom practical experience and taking

lessons from pitfalls of the past


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From fist-fight to empowerment

The World has changed since 1990s

The ITES sector impact is irreversible

Job security can no more be determined by

collective pressure but by employability

Training, Information & Ability to workflexibly will determine Job security

Unions must share these values along withManagements transparent goals

Mutual gains Enterprise is the best option


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The Partnership Philosophy lives on

Workers participation in Management, as a concept is

philosophically sound & rich

WPM derives merit from theprinciple of Trusteeship enunciated

by Mahatma Gandhi

It is an ideological extension of democratic spiritand principles

for the workplace

True democracy & free market economy go hand in hand;

regulation stifled growth of WPM The irony of zero Rights for workers in Communist ruled

Soviet Union and PRC

WPM /Partnership is likely to flourish under liberalisation,

while it could not succeed earlier

workers participation management

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