Everything you need to know about the objectives of workers participation in management (wpm).
Worker’s Participation gives the worker a sense of importance, pride and accomplishment; it gives him freedom and opportunity for expression; a feeling of belonging to the place of work, and a sense of workmanship and creativity. It provides for the integration of his interests with those of the management by making the worker a joint partner in the enterprise.
Hartley (1994) remarked that the objectives of participation of workers in management are to generate among the workers a sense of identity, belongingness and participation with a view to promote industrial harmony and to increase production. In India, industrial relations before independence were not good.
The production, relations and environment were adversely affected. After independence the government took the initiatives and passed the Industrial Policy Resolution 1956, with the purpose to bring the democracy in the industry and establish democratic values in the society by sharing of managerial powers by non-managerial staff as per policy directing.
The objectives of workers participation in management have been summarized as:-
1. Improvement of Productivity and Efficiency 2. Promotion of Industrial Democracy 3. Prevention of Conflict and Friction 4. Improvement of Motivation and Morale of Employees 5. Raising of Managements Effectiveness 6. Development of Good Industrial Relations 7. Control over External Interference 8. Stimulus for Productivity 9. Increased Self Respect.
Also, learn about the objectives of workers participation in management at different levels like economic, social, political, moral and psychological levels.
Learn about the Objectives of Workers Participation in Management (WPM)
Objectives of Workers Participation in Management (WPM) – 6 Main Objectives
According to Keith Davis, participation refers to the mental and emotional involvement of a person in a group situation which encourages him/her to contribute to group goals and share responsibilities with them.
According to International Institute of Labour Studies, “The participation results from practices which increase the scope of the employees share of influence in decision making at different tiers of the organizational hierarchy with concomitant assumption of responsibility.”
The objectives of workers participation in Management have been summarized as below:
(1) To improve and increase the quality and quantity of production, for the benefit of the enterprise and in the interest of the social community at large.
(2) To improve and enhance the workers quality of work life in the process of attaining organizational goals.
(3) To ensure satisfaction from work and of psycho-social needs of the workers.
(4) To strengthen and develop mutual cooperation between management and workers for the maintenance of industrial peace and harmony.
(5) To harness human working capital by incurring minimum cost and targeting maximum efficiency of the factors of production.
(6) To generate social education among the industrial actors, for the attainment of effective and competitive solidarity and reduce power inequalities.
Objectives of Workers Participation in Management – According to the Second Five Years Plan of Indian Government for Taking Management Decision
Hartley (1994) remarked that the objectives of participation of workers in management are to generate among the workers a sense of identity, belongingness and participation with a view to promote industrial harmony and to increase production. In India, industrial relations before independence were not good.
The production, relations and environment were adversely affected. After independence the government took the initiatives and passed the Industrial Policy Resolution 1956, with the purpose to bring the democracy in the industry and establish democratic values in the society by sharing of managerial powers by non-managerial staff as per policy directing.
According to the Second Five Years Plan of Indian government the main objectives of workers’ participation in management decisions wore the following:
(a) To improve psychological feeling of the employees by satisfying the workers’ social and esteem needs and develop better understanding of their importance and role in the working of the production, and profitability of the company.
(b) To improve industrial relations commitment level of employees so that their productivity improves.
(c) To create the healthy working environment of trust, openness, mutual understanding, sense of cooperation, and team-spirit in the company.
(d) To reduce the industrial disputes and maintain good level of industrial peace in the industry.
(e) To utilize the available resources including manpower most effectively to achieve the goals of the industry.
(f) To improve the performance effectiveness of every system, machine, employee and of whole in the interests of all concerned.
(g) To implement this scheme for the betterment of employees, management, industry, profitability of industry, and national progress and integrity.
With these objectives, the experts also agreed keeping in view the prevailing poor industrial relations and lower productivity of employees, machines and the company as a whole. However, the objectives vary from country-to-country to some extent.
Objectives of Workers Participation in Management – Developing a Sense of Belongingness, Creating an Atmosphere of Mutuality and a Few Others
The objectives of workers participation in management include:
1. Developing a sense of belongingness – It develops a sense of ‘belongingness’, ‘we-feeling’ ‘togetherness’ amongst employees in organization which is prerequisite for achieving organizational goals.
2. Creating an atmosphere of mutuality – It creates an atmosphere of mutual understanding, mutual faith and mutual confidence between employees and management.
3. Reducing industrial conflict – It reduces industrial conflicts as most of the issues are settled through joint participation, discussion and negotiation.
4. Ensuring increased production – It ensures increased production through cooperative efforts as workers think themselves as part and parcel of the company.
5. Generating commitment of employees – It generates loyalty, commitment of employees to the success of the company.
6. Bringing changes to produce quality goods – It can bring changes in operation, methods, techniques of production to produce quality goods as per requirement, in view of changing scenario.
7. Improving satisfaction level of employees – It improves level of satisfaction of employees as through participation they can satisfy their psychological needs.
8. Promoting industrial relations – It helps to bring harmony and peace in industry, and thereby develops healthy industrial relations in organization.
9. Improving QWL – It improves the quality of working life (QWL) of employees.
Objectives of Workers’ Participation in Management – 5 Broad Objectives: Improvement of Productivity & Efficiency, Promotion of Industrial Democracy and a Few More
Objectives of participative management/workers’ participation in management have been varied.
Some of its more notable broad objectives are the following:
Objective # 1. Improvement of Productivity and Efficiency:
A major objective of participative management/workers’ participation in management has been to promote productivity and efficiency, improving quality of products, elimination of waste and spoilt work and related matters. All these are in the common interests of both the management and employees.
Both the parties desire that the size of the cake is enlarged and its quality improved, so that each of them may have a larger piece with good quality as its share. In order to ensure desired results, it is, however, necessary to devise a method of sharing the cake to the satisfaction of both the parties.
Objective # 2. Promotion of Industrial Democracy:
One of the objectives of workers’ participation in management is to enable the workers to participate in the deliberations over the conditions under which they work and take part in reaching decisions. Such an opportunity develops a sense of belongingness among the employees to their enterprise. The success of one scheme leads to the adoption of another and the process goes on continuing. Thus, the concept of democracy existing in the political field also spreads to industry with all its advantages.
Objective # 3. Prevention of Conflict and Friction:
In the absence of arrangement for solving problems of common interests of the management and employees in joint forums, there is a likelihood of emergence and aggravation of conflicting situations. Such situations may sometimes culminate in wider forms of confrontation. When the parties themselves sort out the problems and jointly work out their solution, the scope for conflict and friction is substantially reduced. Thus, workers’ participation is conducive to the establishment of peaceful industrial relations.
Objective # 4. Improvement of Motivation and Morale of Employees:
Participative management also leads to the improvement of motivation, morale and job satisfaction of employees. The schemes of workers’ participation in management provide opportunity for employees to express their views freely and frankly, and understand the genuineness of the problems facing the enterprise, and develop among them the feeling of recognition of their worth by the management. All these promote team-work, co-operative approach to deal with problems, and fruitful employee relations.
Objective # 5. Raising of Managements Effectiveness:
Participative management also enriches the knowledge and skills of managers, supervisors and even higher executives by the ideas and views of the employees expressed at the participative forums. The pooling of ideas and views received from the employees may sharpen management’s tool to handle problems. In the absence of workers’ participation, the management may take erroneous decisions causing more harm than good to the organisation.
Objectives of of Workers Participation in Management (WPM)
In 1975, the Constitution of India was amended and Section 43-A was inserted in the Directive Principles of State Policy. The article provided that “The state shall take steps by suitable legislation or in any other way, to secure the participation of workers in management of the undertakings, establishments or other organisation engaged in any industry.”
According to this amendment, workers participated in the management process of the manufacturing and mining industries, it was notified in 1975. This scheme provided for the formation of joint councils at the plant level and shop councils at shop level which covered manufacturing and mining units both public and private sectors. Aim of this scheme is to generate “mutual trust” and confidence between workers and management. It also promotes active involvement of workers at the work place.
In 1977, the Government of India extended this scheme to the commercial or service organisation of the public sector. On 30th December 1983, it introduced a new scheme for employees’ participation in management, which was applicable to all public sectors. It was applicable not only at the shop or plant levels but also at the board level. This scheme provided equal participation of workers and management in the forums.
Objectives of this Scheme:
(1) Political Object:
To make the workers conscious of their rights at the work place and to establish industrial democracy. Political democracy gives the workers the right to participate in the governance of the country.
(2) Social Object:
Participation of workers’ in the management process of the organisation provides respectable status to the workers in the society.
(3) Economic Object:
Economic object of workers’ participation in management is to increase workers’ productivity. And this is possible through cooperation between workers and management. It motivates workers to work hard.
(4) Psychological Object:
Another important psychological object of workers’ participation in management is to bring attitudinal change among workers. They feel part and parcel of the organisation.
(5) Moral Object:
Moral object of this scheme is to develop workers’ personality. Workers feel satisfied when decision is made with their participation in matters affecting them directly or indirectly.
Objectives of Worker’s Participation in Management – As Suggested by Gosep
The objectives of the workers’ participation scheme vary from country to country, because they largely rests with their socio-economic development of country, its political philosophy, industrial relations scene, and the attitude of the working class.
Accordingly, the objectives may be democratisation of management, eliciting workers’ co-operation in the attainment of corporate goals, personalisation and humanisation of the management process, and behavioural approach to the management of workers-management relations, etc.
In the words of Gosep, workers’ participation may be viewed as:
(i) An instrument for improving the efficiency of enterprises, and establishing harmonious industrial relations;
(ii) A device for developing social education for the purpose of promoting solidarity among the working community and for tapping latent human resources (by getting employees’ suggestions and by improving attitudes towards work and the organisation);
(iii) A means for attaining industrial peace and harmony which lead to higher productivity and increased production;
(iv) A humanitarian act, giving the worker an acceptable status within the working community and a sense of purpose in his activity;
(v) An ideological point of view to develop self-management in industry.
In India, according to the Industrial Policy Resolution, 1956, the aim of the government in advocating workers’ participation in management is “a part of its overall endeavour to create a socialist society, wherein the sharing of a part of the managerial powers by workers is considered necessary.”
The purpose which workers’ participation in management try to achieve, in the words of the Second Five-Year Plan, are:
(a) Increasing productivity for the general benefit of the enterprise, the employees and the community;
(b) Giving employees a better understanding of their role in the working of the industry and of the process of production; and
(c) Satisfying the workers’ urge for self-expression, thus leading to industrial peace, better relations and increased co-operation.
These objectives may be achieved as a result of the consequences resulting from the process of workers’ participation.
These consequences are:
(i) Challenging work for workers;
(ii) Heightened sense of responsibility;
(iii) Meaningful relationship to work;
(iv) Availability of workers’ ideas and suggestions to management;
(v) Realistic management decisions;
(vi) Accommodation, change, motivation and commitment to implement decisions;
(vii) Effective communication system;
(viii) Better worker-supervisor relationship.
Objectives of Worker’s Participation in Management
The workers’ participation in management is inevitable from the economic, psychological and sociological points of view.
Economically, it flows from the assumption that employees can contribute substantially to the progress and prosperity of the enterprise, and that they have, therefore, a legitimate right to share equitably in the gains of higher productivity.
The higher productivity is achieved through the fullest co-operation between labour and management, for “poor labour-management relations do not encourage the workers to give more than the minimum necessary to retain the job; and that, in many cases, is all that he gives.”
Psychologically; it implies recognition of employees’ non-economic needs; the satisfaction of these needs through effective participation can help to raise the level of motivation.
“Worker’s Participation gives the worker a sense of importance, pride and accomplishment; it gives him freedom and opportunity for expression; a feeling of belonging to the place of work, and a sense of workmanship and creativity. It provides for the integration of his interests with those of the management by making the worker a joint partner in the enterprise.”
Sociologically, the need for participation arises because modern industry is a social institution with the interest of the owner, the employer, the community and the workers equally vested in it. It aims at reducing the number of industrial disputes and creates positive conditions and an atmosphere in which industrial harmony and peace can develop.
“Participation forges ties of understanding between individuals, leading to better efforts all round; and its absence leads to stagnation of minds and allows the abilities of producers to remain dormant, introduces a sullenness in behaviour which ultimately may flare up into breaches of discipline and a consequent loss in production.”
Objectives of Workers’ Participation in Management:
1. To encourage better relations between management and employees and establish industrial democracy.
2. To promote increased productivity for the benefit of the workers and the organization as a whole.
3. To facilitate the growth and development of individual workers by giving them a chance to participate in decision-making.
4. To help the employees understand their role in the setting of and achieving the organizational goals.
5. Fulfil the esteem needs of the workers by treating them as valuable contributors to the organization.
6. To create a just workplace where principles of equality and cooperation are upheld.
7. To elevate the social status of the worker through his participation in the important managerial activities.
Objectives of Worker’s Participation in Management – At Economic, Social, Political, Moral and Psychological Level
The concept of Workers’ Participation in Management (WPM) has been exercising the thoughts of management experts, industrial owners, the working class and the research scholars the world over so much that many countries have attempted to give practical shape to it in one form or another. It is one of the widely debated issues in industrial relations. Diversity of views makes it difficult for a clear understanding of the concept.
“Participation is one of the most misunderstood ideas that have emerged from the field of human relations”.
This concept has assumed significance in today’s changing industrial environment that it can no more be brushed aside as something impracticable on the ground of non-existence of certain prerequisites. Just as political democracy has become acknowledged as the best form of Government of a country with all its shortcomings, industrial democracy has become the cry and clamour of those who cherish freedom for the working class. Participation in management is only a process of democratizing the industrial structure.
The following objectives of WPM are:
1. Economic – To increase workers’ productivity. This is possible through cooperation between workers and management. It motivates the workers to work hard. The management and the workers mutually agree to some form of sharing the gains.
2. Social – To develop a sense of fulfilment not only as regards work but also in regard to social environment. This provides to workers a respectable status in the society.
3. Political – To make the workers conscious of their right on their work place and establish industrial democracy. Political democracy gives workers the right to participate in the Government of the country.
4. Moral – To develop worker’s free personality and feel satisfied when decisions are made with their participation in matters affecting these directly or indirectly.
5. Psychological – To bring attitudinal change among workers so they feel as a part and parcel of the organisation.
Objectives of Workers’ Participation in Management – Establishment of Industrial Democracy, Development of Good Industrial Relations and a Few Other Objectives
Workers participation in management, as indicated above, is mostly through workers’ representatives. Therefore, it has certain objectives which extend beyond the participative management based on individual participation.
These objectives are as follows:
Objective # 1. Establishment of Industrial Democracy:
Workers’ participation attempts at establishment of industrial democracy. In a democratic society, industrial democracy is as important as political democracy. Through the political democracy, citizens of a country express themselves through their elected representatives. In the same way, workers should have some kind of mechanism through which they can raise their voices at least on those issues which affect their lives.
Workers’ participation in management is of the utmost importance for the democratization for the society because the place of work happens to be an important social institution.
Objective # 2. Development of Good Industrial Relations:
An industrial relations system involves three parties — management, workers, and government. While management and workers are direct parties, government plays indirect role in the form of providing legal framework. A prerequisite for good industrial relations is that both management and workers settle their differences through mutual consultations and decisions.
Workers’ participation in management provides avenues for these. The participation may be at different levels of management. At each level, the relevant problems can be solved.
Objective # 3. Control over External Interference:
In a social system, external interference is required if the system does not work as envisaged. In the same way, if the industrial relations system of an organization does not work properly, it is prone to external interference. Such interference may be by the government or the society at large.
However, such an external interference as a regulatory measure is detrimental to the organization and its management and employees. An effective workers’ participation in management ensures that such external interference is not applied.
Objective # 4. Stimulus for Productivity:
Workers’ participation in management stimulates workers for higher productivity. This works in two ways. First, if workers are involved in decision-making process, they perceive that decision outcomes are their own and not externally imposed. Own decisions have better implementability as compared to imposed ones.
Workers have higher level of enthusiasm and motivation to implement their own decisions. Second, in the joint decision-making process, workers and their representatives may provide more relevant information on the issues concerning them. Thus, because of enhanced information input, the quality of decisions on-these issues is likely to be better. All these help in stimulating workers for increased productivity.
Objective # 5. Increased Self Respect:
Unilateral decisions by management on the issues affecting workers are based on the principle of master-servant relationship while decisions through workers’ participation are based on the principle of equality. The old master-servant relationship concept is no longer valid in the present society but it has been replaced by the principle of equality.
Today, workers in an organization are not servants of the employers; they are being known as associates, and associates have right to make decisions. Such a right to workers creates the feeling of dignity and self-respect.
All these objectives, if fulfilled by proper implementation of workers’ participation in management, affect the organization, workers, and the society positively.