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ASSIGNMENT

MODES OF PARTICIPATIVE MANAGEMENT


SUBJECT-HUMAN RESOURSE MANAGEMENT

Submitted to - Dr.Santhosh.P.Thampi

Submitted by, K.S.Lija Group-1 S3 MBA

DATE OF SUBMMISSION 23/07/2012

CONTENT

CONTENT Modes of participative management Work committee Joint management council Joint council committee Shop council Unit council
FORMS OF WPM
REQUIRMENTS OF SUCCESSFUL WORKERS PARTICIPATON

PAGE NO 1 1 7 8 9 9 10 12 12 15

Participative management in TCS Reference

MODES OF PARTICIPATION
Participation of workers in management of industrial enterprises is achieved by the following methods: WORKS COMMITTEE A works committee consists of equal number of representatives of both employers and workers. The main purpose behind the establishment of works committees is to evolve ways and means for maintaining harmonious and friendly relations between employees and management. It meets frequently for discussion on common problems of workers and the management. After discussion, joint decisions are taken and such decisions are binding on both the parties. Matters like wage payment, bonus, training, discipline, etc. are discussed in such meeting. Work committees are extremely popular effective in France and also in England. In India there is a statutory provision for the establishment of works committee under the Industrial Disputes Act, 1947. Under section 3 of his act, the appropriate government may require an enterprise employing 100 or more workers to constitute a works committee with equal number of representatives from the workers and the management. Works committee will deal with matters of daily routine at the shop floor level which are concerned with the following: Conditions of work such as ventilation, lighting, temperature and sanitation. Amenities such as drinking water, canteen facilities, dining rooms and health services. Safety, accident prevention, occupational diseases and protective equipments. Adjustment of working days in tune with festivals and national holidays. Administration of welfare and penalty funds. Educational and recreational activities. Promotion of thrift and savings. Implementation and review of decisions made in the meetings of works committees.

The following items are excluded from the purview of works committees: Wages and allowances. Profit sharing and bonus settlements. Rationalization of work load. Fixation of labour strength on the standard basis. Planning and development programmes. Quantum of holidays and leave facilities.

Retirement benefits. Retrenchment and layoff. Victimization due to trade union activities. Matters connected with provident fund and gratuity. Housing and transport facilities. Incentive schemes.

The progress of works committees has not been satisfactory in India due to following reasons: Lack of competence on the part of workers representatives. Lack o genuine interest on the part of workers representatives. Indifferent attitudes of employees. Inter-union rivalries. Lack of feedback on the performance of works committees. Delay in implementing the recommendations.

Functions of works committee


PART VII (Of the Industrial Tribunal (Central Procedure) Rules, 1954) WORKS COMMITTEE 38. Constitution. -Any employer to whom an order made under sub-section (1) of section 3 relates shall forthwith proceed to constitute a Works Committee in the manner prescribed in this part. 39. Number of members- The number of members constituting the Committee shall be fixed so as to afford representation to the various categories, groups and class of workmen engaged in, and to the sections, shops or departments of the establishment: Provided that the total number of members shall not exceed twenty; provided further that the number of representatives of the workmen shall not be less than the number of representatives of the employer. 40. Representatives of employer- Subject to the provisions of these rules, the representatives of the employer shall be nominated by the employer and shall, as far as possible, be officials in direct touch with or associated with the working of the establishment. 41. Consultation with trade unions.(1) Where any workmen of an establishment are members of a registered trade union the employer shall ask the union to inform him in writing(a) How many of the workmen are members of the union; and (b) How their membership is distributed among the sections, shops or departments of the establishment. (2) Where an employer has reason to believe that the information furnished to him under sub-rule (1) by any trade union is false, he may, after informing the union, refer the matter to the Assistant Labour

Commissioner (Central) concerned for his decision; and the Assistant Labour Commissioner (Central), after hearing the parties, shall decide the matter and his decision shall be final. 42. Group of workmen's representatives. - On receipt of the information called for under rule 41, the employer shall provide for the election of workmen's representative on the Committee in two groups(1) those to be elected by the workmen of the establishment who are members of the registered trade unions, and (2) those to be elected by the workmen of the establishment who are not members of the registered trade union or unions,bearing the same proportion to each other as the union members in the establishment bear to the non-members: Provided that where more than half the workmen are members of the union or anyone of the unions, no such division shall be made: Provided further that where a registered trade union neglects or fails to furnish the information called for under sub-rule (1) of rule 41 within one month of the date of the notice requiring it to furnish such information such union shall for the purpose of this rule be treated as if it did not exist: Provided further that where any reference has been made by the employer under sub-rule (2) of rule 41, the election shall be held on receipt of the decision of Assistant Labour Commissioner (Central). 43. Electoral constituencies.- Where under rule 42 the workmen's representatives are to be elected in two groups, the workmen entitled to vote shall be divided into two electoral constituencies, the one consisting of those who are members of a registered trade union and the other of those who are not: Provided that the employer may, if he thinks fit, sub-divide the 1[electoral constituency or constituencies, as the case may be] and direct that workmen shall vote in either by groups, sections, shops or departments. 44. Qualification of candidates for election. - Any workman of not less than 19 years of age and with a service of not less than one year in the establishment may, if nominated as provided in these rules, be a candidate for election as a representative of the workmen on the Committee: Provided that the service qualification shall not apply to the first election in an establishment which has been in extence for less than a year. 2[Explanation. -A workman who has put in a continuous service of not less than one year in two or more establishments belonging to the same employer shall be deemed to have satisfied the service qualification prescribed under this rule] 45. Qualifications for voters. - All workmen 3[***] who are not less than 18 years of age and who have put in not less than 6 months' continuous service, in the establishment shall be entitled to vote in the election of the representative of workmen.[Explanation. - A workman who has put in continuous service of not less than 6 months in two or more establishments belonging to the same employer shall be deemed to have satisfied the service qualification Prescribed under this rule.] 46. Procedure for election.(1) The employer shall fix a date as the closing date for receiving nominations from candidates for election as workmen's representatives on the committee. (2) For holding the election, the employer shall fix a date which shall not be earlier than three days and later than fifteen days after the closing date for receiving nominations. (3) The dates so fixed shall be notified at least seven days in advance to the workmen and the registered trade union or unions concerned. Such notice shall be affixed on the notice board or given adequate publicity amongst the workmen. The notice shall specify the number of seats to be elected by the groups, sections, shops or departments and the number to be elected by the 1; members of the registered trade union or unions and by the non-members. (4) A copy of such notice shall be sent to registered trade union or unions concerned.

47. Nomination of candidates for election. (1) Every nomination shall be made on a nomination paper in Form G copies of which shall be supplied by the employer to the workmen requiring them.

1. Subs. by G.S.R. 1253, dated 3rd August, 1966. 2. Added by G.S.R. 1078, dated 4th August, 1962 3. Omitted by G.S.R. 1078 dated 4th August, 1962.

(2) Each nomination paper shall be signed by the candidate to whom it relates and attested by at least two other voters belonging to the group, section, shop or department the candidate seeking election will represent, and shall be delivered to the employer. 48. Scrutiny of nomination papers. (1) On the day following the last day fixed for filing nomination papers, the nomination papers shall be scrutinised by the employer in the presence of the candidates and the attesting persons and those which are not valid shall be rejected. (2) For the purpose of sub-rule (1), a nomination paper shall be held to be not valid if (a) the candidate nominated is ineligible for membership under rule 44, or (b) the requirements of rule 47 have not been complied with: Provided that where a candidate or an attesting person is unable to be present at the time of scrutiny, he may send a duly authorised nominee for the purpose. 1[48-A. Withdrawal of candidates validly nominated. - Any candidate whose nomination for election has been accepted may withdraw his candidature within 48 hours of the completion of scrutiny of nomination papers.] 49. Voting in election. (1) If the number of candidates who have been validly nominated is equal to the number of seats, the candidates shall be forthwith declared duly elected. (2) If in any constituency the number of candidates is more than the number of seats allotted to it, voting shall take place on the day fixed for election. (3) The election shall be held in such manner as may be convenient for each electoral constituency. (4) The voting shall be conducted by the employer, and if any of the candidates belong to a union such of them as the union may nominate shall be associated with the election. (5) Every workman entitled to vote at an electoral constituency shall have as many votes as there are seats to be filled in the constituency: Provided that each voter shall be entitled to cast only one vote in favour of anyone candidate. 50. Arrangements for election. - The employer shall be responsible for all arrangements in connection with the election. 51. Officers of the Committee. (1) The Committee shall have among its office-bearers a Chairman, a Vice-Chairman, a Secretary and a Joint-Secretary. The Secretary and the Joint-Secretary shall be elected every year. 2[(2) The Chairman shall be nominated by the employer from amongst the employer's representatives on

the

Committee

and

he

shall,

as

far

as

possible,

be

the

head

of

establishment.

1. Added by G.S.R. 1078, dated 4th August, 1962. 2. Subs. by Notification No. G.S.R. 1078, dated 4th August, 1962. (2-A) The Vice-Chairman shall be elected by the members on the Committee representing the workers, from amongst themselves: Provided that in the event of equality of votes in the election of the Vice-Chairman, the matter shall be decided by draw of a lot.] (3) The Committee shall elect the Secretary and the Joint Secretary provided that where the Secretary is elected from amongst the representatives of the employers, the Joint Secretary shall be elected from amongst the representatives of the workmen and vice versa: Provided that the post of the Secretary or the Joint Secretary, as the case may be, shall not be held by a representative of the employer or the workmen for two consecutive years: 1[provided that the representatives of the employer shall not take part in the election of the Secretary or Joint Secretary, as the case may be, from amongst the representatives of the workmen and only the representatives of the work- men shall be entitled to vote in such elections.] 1[(4) In any election under sub-rule (3), in the event of equality of votes, the matter shall be decided by a draw of lot.] 52. Term of office. 2[(1) The term of office of the representatives on the committee other than a member chosen to fill a casual vacancy shall be two years.] (2) A member chosen to fill a casual vacancy shall hold office for the unexpired term of his predecessor. (3) A member who without obtaining leave for the Committee, fails to attend three consecutive meetings of the Committee shall forfeit his membership. 53. Vacancies.-In the event of workmen's representative ceasing to be a member under sub-rule (3) of rule 52 or ceasing to be employed in the establishment or in the event of his resignation, death or otherwise, his successor shall be elected in accordance with the provisions of this part from the same group, section, shop or department to which the member vacating the seat belonged. 54. Power to co-opt. - The Committee shall have the right to co-opt in a consultative capacity persons employed in the establishment having particular or special knowledge of a matter under discussion. Such co-opted member shall not be entitled to vote and shall be present at meetings only for the period during which the particular question is before the Committee. 55. Meetings. (1) The Committee may meet as often as necessary but not less often than once in three months (a quarter). 1. Ins. by G.S.R. 289, dated 2nd March, 1982 (w.e.f. 13.3.1982). 2. Subs. by Notification No. G.S.R. 1078, dated 4th August, 1962. (2) The Committee shall at its first meeting regulate its own procedure. 56. Facilities for meeting, etc.(1) The employer shall provide accommodation for holding meetings of the Committee. He shall also provide all necessary facilities to the Committee and to the members thereof for carrying out the work of the Committee. The Committee shall ordinarily meet during working hours of the establishment

concerned on any working day and the representative of the workmen shall be deemed to be on duty while attending the meeting. 1[(2) The Secretary of the Committee may with the prior concurrence of the Chairman, put up notice regarding the work of the Committee on the notice board of the establishment.] 2[56-A. Submission of returns. - The employer shall submit half yearly returns as in Form G-1 in triplicate to the Assistant Labour Commissioner (Central) concerned not later than the 20th day of the month following the half- year.] 57. Dissolution of Works Committee. - The Central Government, or where the power under section 3 has been delegated to any officer or authority under section 39, such officer or authority may, after making such inquiry as it or he may deem fit, dissolve any Works Committee at any time, by an order in writing, if he or it is satisfied that the Committee has not been constituted in accordance with these rules or that not less than two-thirds of the number I of representatives of the workmen have without any reasonable justification failed to attend three consecutive meetings of the Committee or that the Committee has, for any other reason, ceased to function: Provided that where a Works Committee is dissolved under this rule the employer may, and if so required by the Central Government or, as the case may be, by such officer or authority, shall take steps to reconstitute the Committee in accordance with these rules. 1. Original Rule 56 renumbered as sub-rule (1) and sub-rule (2) added by G.S.R.1078, dated 4th August, 1962. 2. Added by G.S.R. 1078, dated 4th August, 1962.

JOINT MANAGEMENT COUNCIL Joint consultation scheme was started in the UK with the formation of Whitley Councils (works council, district councils and national councils) on the recommendations of the Whitley committee which was appointed by the British Government to recommend measures for the permanent settlement of differences between the workers and the management. JMCs are formed at the plant level with equal number of employees and employers. These are mainly advisory bodies. The decisions of such committees are not binding on either party, yet they are implemented as they are arrived at by mutual consultations. The responsibility of the JMCs is concerned with matters such as working conditions, indiscipline, absenteeism, training, safety, prevention of accidents, preparation of holiday schemes etc. The functions and features of JMCs are as follows: 1. The JMCs are consulted by the management over the following matters 2. Alteration in the standing order Retrenchment Proposals for rationalization Closure, reduction in or cessation of operation Introduction of new methods and Procedure for engagement and punishment

The JMCs are supplied with full information relating to the following matters:

General economic situation of the undertaking State of the market, production and sales programmes Organization and general operations of the undertaking Circumstances affecting the economic position of the undertaking Methods of manufacture and work Annual balance sheet and profit and loss account and related documents and explanations.

3.

JMCs are entrusted with the administrative responsibility in respect of the following matters. Welfare measures Safety measures Vocational training and apprentice schemes Preparation of schedules of working hours and breaks Preparation of holiday schedules and Payment of rewards for valuable suggestions

4.

JMCs are not expected to function as substitutes for trade unions. Hence wages, bonus and individual grievances are kept outside the purview of JMCs.

5.

JMCs will be successful only if the following conditions are satisfied: The management should strive to win the confidence of its workers. Supervisory staff should be given due representation in the JMCs. Subjects earmarked for collective bargaining must be kept outside the scope of joint consultation. Decisions of the JMCs should take place at reasonable intervals. Discussion in the meetings should be free and frank. Wide publicity should be given to all the decisions taken at these meetings through the supervisory staff. Employers should try to create necessary climate for real consultation with workers.

JOINT CONSULTATIVE COMMITTEES Joint consultation is the process whereby the employer consults the workers either directly or through their representatives and seeks their opinion on various issues while retaining to themselves the right of taking final decisions. It is carried on through Joint Consultative committees consisting of representatives of both employer and workers.

Joint consultation includes matters not covered in collective bargaining. Workers training, productivity and quality improvement schemes, grievances, disciplinary problems, safety measures and incentive schemes can be covered under joint consultation. Joint consultation will offer the following advantages: It will promote mutual trust among the employers and employees. It will pave way for the observance of industrial democracy. It will help to improve job satisfaction. It will help to improve the morale of workers. It will develop initiatives among the workers. It will help to reduce employees resistance to new machines and methods.

SHOP COUNCILS The shop council will attend to the following matters: It will assist the management in achieving monthly or annual targets. It will concentrate on increasing production, improving productivity and enhancing efficiency. It will strive to eliminate wastage. It will ensure optimum utilization of machine capacity and manpower. It will identify areas of low productivity and take necessary steps at shop level to eliminate and reduce absenteeism in the shop. It will assist in maintaining general discipline in the shop/department. It will ensure proper communication between the management and workers. It will stress the importance of lighting and ventilation requirements. It will take steps to avoid noise and dust. It will ensure reduction of fatigue.

UNIT COUNCILS Unit councils are employed in units employing at least 100 persons. The organizations include hotels, Restaurants, Hospitals, Air, Sea, Railway and road transport services, ports and Docks, Ration shops, Schools, Research Institutions, Provident fund and Pension organizations, Milk distribution units, Trust organizations, Financial Institutions, Banks, Insurance companies, Post and telegraph offices, food corporation, State electricity boards, Warehousing corporations, State trading corporation, Mines and mineral trading corporation, Tourist organizations etc. The main functions of Unit Councils are the following:

To create conditions for creating optimum efficiency. To identify areas of inadequate or inferior service and to take necessary corrective steps to eliminate the contributing factors to evolve improved methods of operation. To study absenteeism and recommend steps to reduce it. To eliminate pilferage and all forms of corruption. To institute a system of rewards for those with proven ability. To suggest improvements in physical conditions of working such as lighting, ventilation, dust, noise, cleanliness, internal layout etc. To recommend and improve safety, health and welfare measures for an efficient running of the unit. To ensure proper flow of two way communication between the management and workers. To discuss matters which have a bearing on the improvement of performance of the unit for ensuring better customer service.

FORMS OF WPM
Suggestion scheme

Under this scheme, a suggestion committee is constituted consisting of an equal number of members from management and workers. Workers are invited and encouraged to put their suggestions for improving the working of the organisation. The suggestion committee scrutinizes the suggestions given by the workers periodically. Good suggestions which are practically feasible are accepted and implemented. Workers who give good suggestion are properly encouraged and sufficiently rewarded. Representation in boards

Under this scheme, one or two representatives of workers are nominated or elected to the Board of Directors. This is done with a view to safeguard the interests of workers, create industrial harmony and maintain good relationship between workers and the management. This offers the maximum level of participation to the workers in the management process. The process of WPM in this form is objected to on the following grounds: The workers elevated to the post of directors do not remain as workers thereafter. The Board of directors is mainly concerned with matters like finance, marketing, purchase etc. in which workers are at least interested. Therefore, directors elected by them will be passive spectators in the discussions relating to such subjects. Directors representing workers on the Board will be a helpless minority. They will not be able to influence the decision making process of this body in the management hierarchy. Co-partnership

Under this scheme, workers are encouraged to purchase equity shares of the company. Workers are normally allowed to make payments in instalments for the shares purchased by them. Moreover they are given loans to buy equity shares. As shareholders they participate in the management by choosing their representatives to the Board of Directors. However workers participation under this scheme is very much limited and hence trade unions in India do not advocate this scheme. Complete ownership by workers

Under this scheme, workers acquire complete control of management of their enterprise through an elected Board of Directors or a Workers Council. This system is also called self management. This system ensures workers loyalty and accountability to the organisation. This system leads to the creation of industrial harmony and peace for the organisation. Most of the trade unions favour this form of workers participation in management. Collective bargaining

This is a process of negotiation between management and workers represented by their representatives for determining mutually agreed terms and conditions of work which protect the interests of both workers and the management. Empowerment

This is a process in which a manager shares power with a subordinate. Managers may empower subordinates by sharing the resources with them, allowing them to participate in the decisionmaking process and by giving them an access to relevant and important information. The underlying logic behind empowerment is that by involving workers in those decisions that affect them and by increasing their autonomy and control over their working conditions, they may be made motivated, committed, and productive and satisfied with their jobs. Quality circles

It is a work group of employees who meet regularly to discuss the problems relating to quality, investigate causes, recommend solutions and take corrective actions. It is a small group of employees belonging to the same work area. Improvement in the quality of products manufactured and methods of production are aimed at by the quality circles. Quality Circles first originated in Japan during 1962 and then spread to many other countries including India. The quality circles are relatively autonomous units (of about 10 workers), usually led by a supervisor or a senior worker and organized as work units. The workers, who have a shared area of responsibility, meet weekly to discuss, analyse, and propose solutions to ongoing problems. Some typical efforts in improving production method and quality involve reducing defects, scrap, rework, and downtime, which are expected to lead to cost reduction as well as increased productivity. In addition, the quality circles intend to focus attention on the self-employment of workers and the improvement of working conditions. Through this process, there is improvement of workers morale and motivation, stimulation of teamwork, and recognition to their achievements.

REQUIRMENTS OF SUCCESSFUL WORKERS PARTICIPATON


The following conditions should be fulfilled for effective participation: 1. The attitude of the management must be broad, progressive and democratic.it must be willing to associate the workers and discuss the problems freely and frankly with them. 2. The workers must have a strong trade union with enlightened leadership. They must have the willingness to participate in the management of the enterprise. 3. Management and workers must understand clearly the objectives of such participation. Management should not take it as an imposed liability and workers should not use it for expressing their grievances and demands only. 4. Existence of atmosphere of trust, faith, confidence and recognition is a must as faith is the sine qua non ofco- operation. There must be a genuine desire on the part of management and workers to understand each other to arrive at decisions acceptable to both the parties. 5. Labour management relations should be cordial or atleastthere should be no tension in the relations. There should be no blockage in communication between them. 6. For successful participation, it is necessary that employees are sufficiently informed about participation programme and they are given proper training in the field. They must be taught just what is expected of them and how they are expected to perform.

PARTICIPATE MANAGEMENT PRACTICES IN TCS


TATA CONSULTANCY SERVICES LIMITED (TCS)

Employee inputs are solicited through the annual survey called PULSE, conducted through the Companys digital portal, Ultimatix. Opinion polls, Proactive Employee Engagement Programme (PEEP), open-house sessions, Process Improvement Proposals (PIP s), grievance mechanisms, and exit interviews are some other mechanisms to solicit feedback from employees. Cross Functional Teams (CFTs) of local Admin, HR and employees are deployed for seeking the feedback. To ensure appropriate client site work environment, our work contract provides a baseline, and HR regularly liaisons with client support groups. Some channels of Employee Engagement in TCS are: Speak Up: Speak Up is a platform for employees to discuss pertinent matters with the Companys seniors and to bring themselves closer to the Company and its management; thus developing the channels of communication between employees and the Companys top executives. Grievance Redressal System: Employee grievances are logged through a centralised grievance redressal system. Branch Grievance Coordinators and the Corporate Grievance Process Lead perform weekly and monthly reviews to ensure quality grievance resolution by the Human Resources Team within the specified timeframe. Ethics Counsellors at regional and corporate levels also play a key role in handling the sensitive grievances. PIPs: Employees can log PIPs through a link in Ultimatix. To encourage employee participation in the endeavour, the Best PIP award is given annually. PEEP Mentoring: PEEP is a mentoring initiative in which employees connect one-on-one with TCSs senior management.

Propel: Propel provides a forum to discuss issues and ideas, to promote the ideas and to resolve issues at inception level itself. Propel covers all employees across TCS. Camps and confluences are conducted for problem solving, discovery of new ideas, dialogue, reflection and fun. Through these sessions, the employees are provided a platform for learning, interacting and problem solving. PULSE: PULSE is the company's annual Associate Satisfaction Survey, undertaken every year to measure and understand the TCS Associate's attitude, opinions, motivation, aspirations and satisfaction. Through PULSE, TCS attempts to find out opportunities for improvement, invite suggestions, ascertain shortcomings, design appropriate plans, which finally conclude in action. The steady rise in the Associate Satisfaction Index (through PULSE) is an indication of TCS culture and care for its associates. Stress Management: The IT industry is known for its high-pressure work atmosphere and long working hours, which create high levels of stress. TCS encourages its employees to de-stress by participating in Fun@Work which is a term used across TCS to refer to any activity or programme that is conducted during work. Fun@Work Committees are formed across accounts which organise, picnics, parties and get-togethers with fun and games. Annual picnics take place in each region that gives TCSers spread across a region to come together and celebrate with their families and colleagues.

REFERENCE
R.Elangovan, S.Mohan; Human Resource Management Text and Cases; Regal publications; Chapter 31; Page no:538-548 Heneman/Schwab/Fossum/Dyer; publications;Part 9;Page no:665-668 Mirza S Saiyadain;Human Resources Management;Tata McGraw Hill Personnel/Human recourse management; UBS

publications;Chapter 14;Page no:363-371 T.N.Chhabra; Human Resource Management Concepts and Issues; Dhanpat Rai & Co Publications; Chapter 35; Page no 627-633