PARTICIPATIVE

MANAGEMENT
Introduction
Workers participation provides a platform for formal and
informal communication where workers know what is
going on in the organization and they can suggest and
communicate their opinion to the management.

Participation is about employees playing a greater part
in the decision making process
Definition
Newstrom and Davis define participation as the
mental and emotional involvement of people in
group situations that encourages them to
contribute to group goals and share
responsibility for them.

Important features in the definition:
Mental and emotional involvement
Motivation to contribute
Acceptance of responsibility
Factors Influencing
Participation
Subject matter of participation

Level of participation

Extent of authority

Personal characteristics

Levels of Participation
Informative

Consultative

Associative

Administrative

Decisive


Key to Successful Participation
Top management support
Employee support
Free flow of information
Strong and effective trade unionism
Workers education and training
Associate at all levels
Benefits greater than costs
Employee ability
Employee interests
Forms of Participation
Suggestion schemes
Works committees
Joint Management Councils (JMC)
Worker Directors
Co-partnership
Collective Bargaining
Grievance Procedure
Job enlargement and enrichment
Quality Circles
Total Quality Management
Self Managing teams
Financial Participation
Participation through Quality
circle
It is a group of employees that meets regularly to solve
problems.

A quality circle consists of 7-10 people from the same
work area who meet regularly.

Membership is voluntary

Members are trained in problem solving techniques,
such as, brainstorming, cause and effect analysis,
scatter diagrams, etc.
Benefits of Participation
Mutual understanding
Improves performance
Promotes better industrial relations
Increases job satisfaction
Awakening of employees
Satisfies employee expectations
Better communication
Openness to change
Encourages creativity and innovation
Lack of success of
Participative management in
India
Restriction of employees in decision making process,
due to assumption that they are not competent
enough

Due to non fulfillment of lower order needs, majority of
workers are not motivated enough to assume higher
responsibilities in the organization

The union representatives are frequently members of
political parties who put their vested political interests
before the interest of workers

The focus has been on participation at higher levels.
Limitations of Participation
Employees may become too independent

Occasional failure may demotivate employees

Great difficulty in adjusting

Rather than acting as partners, managers may
play role of a judge and a critic

Continued
Potential problems can be overcome by basic guidelines
such as:
Participation should move from simple issues to more complex one
Provide employees with adequate training
Do not force the workers to participate
Communicate clearly the areas of decisional freedom
Realistic goals must be set
The philosophy behind participation should always be kept in mind
Decisions should never be manipulated in the name of participation
INDUSTRIAL
RELATIONS
Industrial Relations
Industrial relations is concerned with the
systems and procedures used by unions and
employers to determine the reward for effort
and other conditions of employment, to protect
the interests of the employed and their
employers and to regulate the ways in which
employers treat their employees.
Features of IR
Outcome of the employment relationship
Includes both individual and collective relations
Complex and multidimensional
Dynamic
Different from HRM
Composite result
Parties
Main purpose to maintain harmonious relations
between management and labour
The central and state government evolve, influence
and regulate IR
Wide scope
Importance of IR
Industrial peace
High morale
Mental revolution
New programmes
Reduced wastage
Higher productivity
Industrial democracy
Collective bargaining
Fair benefits to workers
Facilitation of change

Approaches to Industrial
Relations
Psychological approach
Sociological approach
VV Giri Approach
Gandhian Approach
Unitary Approach
Pluralistic Approach
Marxist Approach
HRD Approach

Parties to Industrial Relations
Employees and their associations

Employers and their associations

The government and its various agencies
TRADE UNIONS
Introduction
Trade union is a voluntary association of
workers which is formed to protect the rights
and interests of workers, to prevent
exploitation of workers by the employer and to
establish good relations between the employer
and employees.

Strength lies in unity
Features of Trade Union
Association
Voluntary
Permanent
Collective action
Common interest
Changing character
Aim


Trade Union Phase in India
Pre-1918 phase
1918-1924 phase
1925-1934 phase
1935-1938 phase
1939-1946 phase
1947 and since
Trends in the Trade Union
Movement in India
Attitudinal change

Depoliticisation of union

Multiplicity of Unions

Outside Leadership

Professionalization of Trade union movement