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Human Resources Management - Workers And Managerial Decisions

Workers Participation in India - Workers And Managerial Decisions

   Posted On :  14.06.2018 11:43 pm

In India, according to the industrial policy resolution, 1956, the aim of the government in advocating worker’s participation in management is to create a socialist society where workers share the managerial powers.

Workers Participation in India
 
In India, according to the industrial policy resolution, 1956, the aim of the government in advocating worker’s participation in management is to create a socialist society where workers share the managerial powers. In second Five-year plan, the purpose of worker’s participation was defined as follows:

1. Increasing productivity for general benefit of the enterprise, employees and community;

2. Giving employees a better understanding of their role in the working of the industry and of the process of production

3. Satisfying the workers urge for self-expression, thus leading to industrial peace, better relations and increased cooperation

4. The Government of India accepted that the representatives of workers should be taken on the board of directors of public sector enterprises. The worker director (representative of the workers) is to be elected by all the workers of the company through a secret ballot.

5. Another tool that has become popular as a form of participative management in an organization is the employee stock option Plan (ESOP). ESOPs offer emotional and financial ownership to the employees.

Pre-Requisites for Successful Participation


For worker’s participation to be successful, there is a need to have:

1. A healthy work atmosphere that motivates employees to participate in the decision-making process. Frequent conflicts in industries frustrate workers and they do not show interest in decision-making as they feel that the management is averse to proposals made by the workers.

2. It is the responsibility of both the workers and the management to put in their best efforts, talents and resources for the realization of their goals.

3. There should be total agreement between both the parties regarding the functioning of the participation schemes. This will ensure the willingness of both the parties to participate in the progress and functioning of the schemes.

4. Frequent meetings between the two parties will reduce the communication gap and help in implementing decisions at the right time.

5. The participation schemes in an organization should be introduced at the shop floor and plant level. Until these are underway, the scheme of workers involvement at the board level should not be introduced.

6. Workers training and education should be given importance so that the workers can understand the importance of their participation and its beneficial effects for the organization.

7. The programs for training and development should be formulated comprehensively so that the workers are able to comprehend the various aspects of management.

8. To make the employees participate actively, their suggestions should be taken into account and if the suggestions are good, they should be implemented immediately. This would increase employee contribution and cooperation.

9. The management and the workers should trust one another and work towards improving the system. They should be willing to contribute to the fulfillment of organizational goals.

10. Workers’ participation schemes should be based on mutual trust and confidence and not enforced by law or compulsion, as this would defeat their very purpose.

11. Finally, it is important to evaluate the effectiveness of the worker participation programs from time- to – time and if required, necessary changes should be made to render them more acceptable and effective.
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