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  • 8/3/2019 HRM Presentation1


  • 8/3/2019 HRM Presentation1




    Workers Participation in Management is a system ofcommunication and consultation, either formal or informal, bywhich employees of an organisation are kept informed aboutthe affairs of the undertaking and through which they expresstheir opinion and contribute to management decisions.

    It is industrial democracy in action based on the principles ofequity, equality and voluntarism.

    It is distribution of social power in industry so that it tends tobe shared among all who are engaged in the work rather thanconcentrated in the hands of minority.

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    Collective Bargaining Issues over which the interests ofworkers and management are competitive such as employment

    conditions, wage rates, working hours and the number of

    holidays are usual areas for collective bargaining.

    Joint Administration, Joint decision-making or Consultation Issues over which parties are equally concerned such as fund

    money, canteen, annual sports, workers welfare facilities, etc.,

    Participation through Suggestion schemes:

    Employees views on matters such as machine utilisation ,waste management, safety measures etc are invited and

    reward is given for the best suggestion . This procedure enables

    the management to arouse and maintain the employees

    interest in their problems concern and its management.

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    Participation through ownership:-

    This involves making workers the shareholders of the company

    by inducing them to buy equity shares. In many cases,advances and financial assistance in the form of easy

    repayment options are extended to enable employees to buyequity.

    Advantage: Makes the workers committed to the job andto the organization.

    Drawback: Effect on participation is limited because

    ownership andmanagement are two different things.

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    There must be a strong, democratic and representative unionism forthe success of participative management.

    There should be a closely formulated objective for participation whichwere mutually agreed upon.

    The working environment must be congenial enough to inspire theworkers to give their best to the enterprise.

    There should be effective consultation of the workers by themanagement to inculcate enthusiasm in them.

    Both have to develop a favourable attitude .

    Employers , Trade Union and the Government can play a major andmeaningful role in organizing and conducting training program and indeveloping the necessary skill in the representatives of workers andemployers.

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    INDIA.Joint Council: Under this scheme every industrial unit

    employing 500 or more workers to constitute a Joint Council.


    a . Optimum production , efficiency and fixation of productivitynorms of man and machine for the unit as a whole,

    b. Development of skill of workmen and adequate facilities fortraining

    c. Preparation of schedule of working hours and holidays

    d. Awarding rewards for valuable and creative suggestionsreceived from workers

    e .General health , welfare and safety measures of the unit .

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    Encouraged by the success of Joint Councils scheme in manufacturing andmining units, Unit Councils was set up on 5 th January, 1977 in commercial andservice organisation in public sector.


    Representatives of workers and management of the organisation/service, employing100 or more workers, may be formed in each unit to discuss day-to-day problems and

    find solutions.

    The Council shall meet once in a month and the decision of a unit council shall bethe parties concerned


    To create conditions for achieving optimum efficiency, better customer service

    To study absenteeism problem and recommend steps to reduce it

    To maintain discipline in the unit.

    To ensure proper flow of adequate two-way communication between themanagement and the workers particularly on matters relating to the service to

    be rendered , fixation of targets of output , and progress in achieving thesetargets.

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    There are four principles on which the labour

    legislation is based viz,

    1. Social Justice

    2. Social and Economic Justice

    3. National economy

    4. International conventions

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    It implies to the establishment of equality in social relationship andaims at removing discrimination suffered by particular groups oflabour and both employers and employees consider themselves astwo wheels of a cart and firmly believe that one cannot exist withoutthe other.

    National Economy :

    Labour legislation ensures industrial peace and helps in theindustrialization of the country. The Directive principles of theconstitution contain the idea of welfare state. It is a fundamental of awelfare state to look after the interest of workers who are the weakest

    section of the society and satisfy their physical needs with theincrease in productivity the benefits are shared with the workers,resulting ih their prosperity. Thus for the growth of economy anddevelopment of the country, labour legislation acts as guidingprinciple.

    Social Justice:

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    International Conventions :-

    International labour origanisations aims at securingthe minimum standard of living for the workers

    throughout the world. If any convention is passed by

    govt , it becomes binding if it is ratified by any country.

    Thus, labour legislation is guided by theseconventions.

    Principle of Protection:-

    It suggests enactment of labour legislation to protect

    those workers who are not able to protect their

    interests on their own.