Participative Management

[pic] ARCHANA KASHYAP (42) SUMEDHA SONAL(53) SHRADHA KUJUR(59) CONTENT 1. INTRODUCTION……………………………….. PAGE-3 2. EVOLUTION OF PARTICIPATIVE MANAGEMENT IN INDIA………………………PAGE-5 3. DEFINITION OF PARTIPATIVE MANAGEMENT……………………………………PAGE-7 4. CHARECTERISTICS……………………………PAGE-9 5. NEED OF PARTICIPATIVE MANAGEMENT……………………………………PAGE-11 6. IMPORTANCE OFEMPLOYEES PARTICIPATION IN MANAGEMENT…………………………………PAGE-13 7. HURDLES IN PARTICIPATIVE MANAGEMENT…………………………………….. PAGE-16 8. BIBILIOGRAPHY…………………………………PAGE-19

INTRODUCTION The meaning of the concept ‘Participative Management’ needs to be understood in the background of its historical evolution from the beginning of this century. It has been developed and improved in different forms in different countries to suit the requirements of the political system and economic structure of the countries concerned. In this chapter, the meaning of the concept of Participative Management as it is understood in recent years has been explained.

It is followed by a discussion of some important definitions of the concept, as defined by the prominent experts in the field. Since the concept of Participative Management is mainly developed and being implemented in the western industrialized countries, an attempt is also made in this chapter to present the historical evolution of the concept in most of the developed countries. The experience in the socialist country, namely U. S. S. R. is also outlined briefly. The experience of some of the developing countries too, are discussed.

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Other forms of participative management include increasing the responsibility of employees (job enrichment); forming self-managed teams, quality circles, or quality-of-work-life committees; and soliciting survey feedback. Participative management, however, involves more than allowing employees to take part in making decisions. It also involves management treating the ideas and suggestions of employees with consideration and respect. The most extensive form of participative management is direct employee ownership of a company. Four processes influence participation.

These processes create employee involvement as they are pushed down to the lowest levels in an organization. The farther down these processes move, the higher the level of involvement by employees. The four processes include: 1. Information sharing, which is concerned with keeping employees informed about the economic status of the company. 2. Training, which involves raising the skill levels of employees and offering development opportunities that allow them to apply new skills to make effective decisions regarding the organization as a whole. 3.

Employee decision making, which can take many forms, from determining work schedules to deciding on budgets or processes. 4. Rewards, which should be tied to suggestions and ideas as well as performance. EVOLUTION OF PARTICIPATIVE MANEGEMENT IN INDIA Participative management is a constitutional in India under article 43-A of the constitution of India. The concept of employee’s participation in management was first postulated by Mahatma Gandhi who believed than an organization is a joint enterprise of labour and capital in which both the owner and the employees have a share.

Participative management in India began with the industrial Disputes Act, 1947, with the constitution of the works committee. In 1956, the Industrial Policy Committee consisting of representatives of management and employees recommended the constitution of joint consultation to ensure industrial peace and harmony between labour and capital. In 1956, the Tata Iron and Steel Company Ltd, Jamshedpur signed a comprehensive agreement with the union for setting up various joint committees towards closer association of employees with management.

In 1983, a new and comprehensive programme was initiated, which was applicable to public sector undertakings. Around 100 public sector organisation implemented the scheme as per the report of the Labour Ministry (1987-88). However, the scheme as on date remains non-statutory in character and therefore the government introduced a bill in 1990 for creation of shop floor councils and establishment councils with equal number of representative from the management and employees. In 1997, TISCO at Jamshedpur set up joint councils.

Joint departmental council operates at the level of every department or a combination of two or more departments. The joint works council is for the entire works and coordinates the activities of the departmental council. Worker’s participation in management was discussed in the 15th session of the Indian Labour Conference and there was a general agreement that participation should be ensured through legislation, or by general agreement between the employees and employers of selected industrial establishments.

DEFINITION OF PARTICIPATIVE MANAGEMENT It is very difficult to define ‘Participative Management’, because commentators differ in their views depending on the socio-economic goals of the countries they belong to. However it is generally agreed that the influence of Participative Management is quite significant indeed. Allport (1945) refers to, “Participation in decision-making as active (ego) involvement”‘. Schultz (1951) regards, “It as a feeling of obligation to work for the best interests of a group”2.

Viteies (1953) holds that, “employee participation in decision-making in a democratic atmosphere created by ‘permissive’ leadership, facilitates the development of ‘internalized’ motivation, and saves to raise the levels of the employee production and ~norale”~. According to Davis (1957), “Participation may be defined as the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share responsibilities in them . Tarmenbun (1966) defines participation as the “formal Involvement of members in the exercise of control, usually through decision-making in group meetingsw5 .

Lamners (1967) pointed out, “participation in decision-making may be defined as the totality of such forms of upward exertion of power by subordinates in organisations as are perceived in this sense can be of two varieties i . e. , direct or indirectn6. Sawtell (1968) has described the concept as, “any or all of the process by which employees rather than managers contribute positively towards the reaching of managerial decisions which affect their work. The International Institute for Labour Studies (1971) describes participation as, “process whereby workers have a share in the reaching of managerial decisions in the enterprise”‘ .

Fox (1971) described participation as a ‘procedural orientation’ and offers the following account of possible levels of the workers Involvement: “He may seek the right simply to be informed of proposed decisions in the hope that his reactions may be taken in to account; or to protest against decision when made; or to made suggestions before they are made; or to participate jointly, directly or indirectly through representatives, with management In actually making them, or to make them in concert with his fellows and impose them on management”9.

Most of the definitions cited above appear to be less explicit, they fail to mention the central theme of participation – joint decision-making by superiors and subordinates. The definitions put forth by Davis, Larmers, Viteles and Fox seem to be more appropriate in the present context. In this research work the concept participation is used according to their definitions. CHARACTERISTICS ? Ethical Dimensions: Participatory management has ethical dimensions and based on morals, principles and values. In this form of management, every one is treated equally when it comes to organizational decision making.

It is based on employee empowerment, responsibility sharing and delegation of authority. ? Proper Channel of Communication: Participative form of management encourages two-way communication. It is not only management that decides what employees need to do but it also encourages employees to participate in decision making and give ideas and suggestions to make organizational processes better and more efficient. They are allowed to share their problems, views, ideas and feedback with their managers. ? Empowers Employees: Participative style of management gives employees a chance to participate in management processes.

They are encouraged to come up with their views. Gone are the days when employees were bossed around by their managers. Now they are to be treated like co-workers. This provides a higher status to employees as they also have a say in decision making. ? Recognition of Human Dignity: In this form of management, all employees are treated equally irrespective of their designations when it comes to giving ideas and suggestions for organizational decision making process. Employees are no more the servants of managers but are the most important assets of an organization. Psychological Satisfaction to Employees: Most of our lives are spent at workplace. It is important for everyone to have psychological satisfaction as far as our employment is concerned. Commitment from the organization, respecting the dignity of individuals and co-determining the company policies are some of the features of participative management that provide psychological satisfaction to employees. NEED OF PARTICIPATIVE MANAGEMENT ? To Give Psychological Satisfaction To Workers: Participative Management is needed in order to give employees psychological satisfaction.

They feel important when their views are taken into consideration. ? Cordial Labor-Management Relations: Participative management is needed in order to establish cordial labor-management relations. The participation of workers in management can act as an effective means for preventing industrial disputes. ? Creating Uniform Approach Of Employers And Workers: Participative management is needed in order to have uniform approach of employer and workers on matters important to both the parties. This avoids disputes. ? To Raise Industrial Production:

Participative management is needed to raise industrial production. Employers work with enthusiasm and interest when they are given importance and a chance to express themselves. ? To Create Platform For Direct Negotiations: Participative management is needed in order to create a platform for direct negotiations and collective decisions as and when required. ? To Create Responsible Approach Among Workers: More the employees are involved in the activities of the organization, more they would feel responsible towards the organization. Participative management creates a responsible approach among employees. To Remove grievances Of Employees: Participation of employees is needed in order to remove doubts, misunderstandings and grievances in the minds of employees as regards policies and activities undertaken by the company. ? To Create a Feeling Of Involvement Among Employees: Employee participation is needed for creating a feeling of involvement among the employees. IMPORTANCE OF EMPLOYEE’S PARTICIPATION IN MANAGEMENT The concept of participative management is very important from the employee’s and the management’s point of view.

This scheme is very useful to promote industrial and human relations in industry, provided the scheme is implemented honestly and without any reservations. It may help minimising the industrial disputes because both employees and management are the partners in the welfare of the industry. ? Industrial Democracy Industrial democracy means participation of all parties concerned for management of industries. When employees participate in the management true industrial democracy is established. Their ego will be satisfied and they will contribute something positive in the interest of the industry and of the country. ? Better Understanding

In a capitalist economy, employees and capitalists are two groups having different interests. Both of them doubt the integrity of each other because both are ignorant of each other’s problems and often do not bother to be acquainted with the same. ? No Resistance to Change Change is generally resisted by employees because every change is regarded by employees as a threat to stability. But, if employees are given a right to participate in the decision making bodies, they will adjust themselves to the changed environment and once the employees are taken into confidence introduction of change will be much smoother. Increase in Production Cooperation of employees results in increased production. Better understanding and good relations are the pre-requisites of higher and better production. Production and productivity cannot be increased without effective cooperation of the employees. ? Industrial Disputes Eliminated As the employees become the partners of the industry and take part in the decision making process, they extend full cooperation to the management in carrying out the decision. They develop a sense of loyalty and better understanding. No Outside Intervention Employees become responsible for carrying out the decision and industrial relations improved hence industrial disputes become negligible. No question of outside intervention arises in case of any dispute. But in the absence of employee’s participation, even for small problems, there has to be some outside intervention and such decisions never last long. ? Use of Employees Creativity Participation offers an opportunity to intelligent employees to demonstrate their knowledge, skill, initiatives as well as creativity.

Highly capable persons having talent can be easily spotted out and offered due promotion. HURDLES IN PARTICIPATIVE MANAGEMENT Employee’s participation in India has not functioned to the satisfaction of either the employees or the employers. Despite the best intentions and evolution of the various schemes over the last four decades, Some of the reasons or factors that have contributed to the failure of the scheme are listed below. ? Unfavourable Attitude of Management One of the problem pertains to managers who have difficulty in adjusting to participation as it tends to threaten their traditional authority.

As employees assume more responsibility and autonomy, there is a blurring of the distinction between the traditional view of manager’s work and an employees work. ? Lack of the Spirit of Participation Lack of spirit of participation is one of the responsible factors of the scheme. The employer looks upon bipartite bodies as substitute for trade unions, while employees regard it as their rival. ? Confusing Management Procedures The procedures do not automatically lead to participation.

Rather, the existence of a number of joint bodies – the works committee, joint management council, shop council, plant councils, canteen committee, safety committee, suggestion committee etc. ? Complex Working Conditions In this world of modernization, working has become so complex that specialized employees are required for specialised work roles, making it difficult for people to participate successfully if they go far beyond their specialist. ? Group Dominance It is usually found that employees do not come together in a joint way for getting the participative scheme implemented. The basic reason is that they are divided into groups.

Each group of employees tries to build-up pressure on the management in its own way for getting their vested interests served. ? Lack of Understanding Generally, there is a lack of proper understanding between employers and employees regarding the concept, purpose and benefits of the participative management. This is mainly because of dealings which relates to the interests of employees and employers on the basis of gains. ? Absence of Strong Union Absence of strong trade union or the existence of more than one trade union and inter-union rivalry has made the working of participative management somewhat difficult.

Even the existence of a number of joint bodies has caused confusion and duplication of efforts as well as wastage of time and energy. ? Delay in Implementation Delay in implementing the suggestions and recommendations of these bodies has often led to the warning of employee’s interests in such bodies. Such delays cause grave damage because the employee’s resentment increases, which pollutes the atmosphere of participative management. BIBILIOGRAPHY ? 1. SITES :- ? WWW. GOOGLE. COM ? WWW. METACRAWLER. COM ? BOOKS:- ? Managing human resources and industrial relations . By Tapomoy Deb. (isbn 9788174466990)

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