Participative Management is a superior concept in the modern managerial world, atleast in India. Participative management or worker's contribution in management means giving opportunity for employees to influence the managerial decision-making process at different levels by various varieties in the organization.
Participation in the decision-making process helps to achieve increased job satisfaction for the employees and higher creation on the part of the company. The staff can be motivated better through non-monetary incentives than through financial incentives. It really is observed in recent times that participation is one of the better non-monetary Incentives. When the organisation can be applied the participation schemes properly, it is believed that it'll be able to improve the creation and productivities of the several factors of creation. At the same time it will serve as a motivator and satisfaction to the employees by getting together with their ego needs.
Participative Management is the procedure of regarding subordinates in the decision-making process. It strains active participation of the employees. It uses their competence and imagination in fixing important managerial problems. It rests on the idea of shared power which holds that managers show their managerla1 authority using their subordinates.
Participative Management is an activity of delegation of expert and responsibility in the overall part of managerial functions. This means sharing within an appropriate manner your choice making vitality with the low ranks of the company of an enterprise.
Basically Participative Management, "concerns the actions by which professionals involve their subordinates in the decision-making process. Involvement includes not only the physical contribution of a person but also his intellectual and mental engagement in the affairs of your organisation.
Participative Management is therefore, a system or process where personnel are called after to express their views about the formulation of policies and decision-making, to the management. This is nothing but a means of satisfying the workers' urge for self expression and creating in them a feeling of belongingness to be able to get their happy co-operation for the reliable working of the company.
The aim of Participative Management system is to help make the workers believe that the organisation is their own and its own success or failing is their own success or inability. It would remove the feeling of alienation from the staff towards the management and also other staff in the same industry.
Workers' participation in management is recommended to achieve the following objectives:-
Increasing efficiency for the general good thing about the enterprise, the employees and the community.
Giving employees a better understanding of their role in the working of industry and of the process of production.
Satisfying the personnel' urge for self-expression.
Achieving industrial peace, better relationships and increased co-operation in industry.
Development of real human personality.
Development of leaders from within the industry.
Workers' participation in general management has great importance these days. This is a link of labour and management whatsoever levels would lead to campaign of both company as well as employees. These are following benefits of participative management such as:
Reduced industrial unrest:- Industrial discord is challenging between two organized groups which are motivated by the belief that their respective pursuits are endangered by self-interested behavior of the other. It tries to remove or atleast lessen the diverse and conflicting passions between the people, by substituting in their place corporation, homogeneity of objective and common hobbies. Both factors are included through participation and decisions arrived at become "ours" alternatively than "theirs".
Reduced misunderstanding:- Involvement helps dispelling employees' understanding about the outlook of management in industry. These misconceptions would otherwise expire hard and their damaging impact needs no explanation.
Increased company balance:- If personnel are invited to share in organizational problems and to work towards common goal, a greater organizational balance occurs because of diminished misunderstanding and issues.
Improved communication:- Because of presence of obstacles to the upward movement of information in most enterprises, much valuable information possessed by subordinates never extends to their managers. Contribution helps to break the obstacles and makes the info available to professionals credited to which some decisions can be transformed well-timed and quality of decisions is improved.
Higher production:- Efficiency increment is merely possible when there can be found full co-operation between labour and management. Good relations between labour and management tend to encourage the employees to contribute more with their jobs and increase productivity.
Increased commitment:- Contribution allow individual's engagement and gave then chance to express themselves. If a person knows that he is able to express his view and ideas, an individual sense of gratification and participation takes place within him.
Industrial democracy:- It helps to maintain an era of democracy in industry. It tends to reduce class turmoil between management and labour. It also will serve as a support to politics democracy.
Development of individuals:- contribution management enhances person creativity and reaction to job challenges. Rather than carrying out a rigid set of instructions, if given the opportunity to question and suggest, the employees' natural ingenuity and capability are allowed expression. This facilitates specific growth.
Less resistance to improve:- When changes are created by management without any reason and need standards, subordinates have a tendency to feel insecure and take counter-top options against it. But when they may have participated in the decision-making process, they experienced an chance to be heard. They really know what to be expected and the real reason for it.
Workers' participation in general management or participative management of commercial enterprises is attained by the many methods. A few of them are the following:-
Works Committee:- It is rather popular and effective method in France and in Britain however, not in India. It consist of equal range of reps from both groupings i. e. employers and individuals. They meet frequently for discussions on common problems of both groups and after debate, joint decisions are taken and such decisions are binding on both parties. Some concerns like wage payment, bonus, training, discipline, etc. are talked about in such conferences.
Joint Management Council:- It had been were only available in UK by English Federal government to recommend measures for the long term settlement of distinctions between the staff and the management. It involves setting up of joint committees displayed by both functions to discuss and give ideas for improvement in regards to to concerns of mutual interest. The decisions of such committees aren't binding on either party. They include problems like safety precautions, grievance redressal, training, working time, etc. .
Collective Bargaining:- It's the process where employees through their elected market leaders participate on equal basis with management in negotiating labour agreements, in administering the agreements, and in redressing grievances of the employees.
Co-partnership:- In this, workers are allowed to acquire shares of the company and so become its co-owners. As shareholders they can participate in management of company through their elected representatives on the Board of Directors and also show up at general conferences of shareholders with voting privileges.
Suggestion Plan:- under this plan, the workers are encouraged to give their recommendations and thoughts to the management on various administrative matters and their ideas are considered carefully and accepted if suited. Also rewards are given to people who make the advice. These recommendations are collected on a monthly basis and ideal decisions are taken jointly by way of a committee consisting of members from staff and management.
Grievance Technique:- In addition, it provides an possibility to the staff to participate in decisions on matters affecting their hobbies.
Quality Circle:- It is a unique method which provides for voluntary contribution by the workers in the direction of quality improvement and self-development. It was first started in Japan and disperse to numerous countries including India. These circles are relatively autonomous devices of about 10workers, usually led by way of a supervisor or a senior worker and arranged as work models. The worker who've a shared portion of responsibility, meet regular to go over, analyse, and propose answers to ongoing problems.
The notion of Participative management in India has a long history. First of all it was presented in 1910 and in textile industry. Immediately after World Warfare I, Tata Iron and Metal Company at Jamshedpur set up a Works Committee with individuals' assistance. After few years this committee had to be wound up since it was not effective. At other areas also Works Committees were setup but with a little success.
The Royal Payment on Labour in India also recommended Works Committees at the plant industry levels for consultation and image resolution of disputes but could not make much headway. After 1940, with the introduction of tripartite labour organisation, trade unionists and political market leaders demanded for labours' connection with management. But scheme of joint discussion got a firm legislative foundation only when the federal government of India enacted Industrial Disputes Take action in 1947. the Function managed to get obligatory for everyone units employing more than 100 staff to constitute works committees. Then Authorities has presented several strategies of personnel' participation in general management of which Joint Management Councils in 1956 and Shop Councils and Joint Councils in 1975 are of value.
The notion of associating labour with management has been around the Directive Concepts of the state of hawaii Coverage in the Indian Constitution. The First Five Yr Plan made efforts to build up joint assessment and introduce employees' participation in general management.
The Industrial Plan Resolution of April, 1956 managed to get clear that "in a socialist democracy, labour is somebody in the common job of development and really should participate in it with enthusiasm".
It was envisaged as the first rung on the ladder to labour management relationship. The objective of the Committee was "to promote measures for securing and conserving good relations between employer and its own workers". Sec3(a) of the Industrial Disputes Action, 1947 provides for establishing of Works Committee in every undertakings employing 100 and much more workers. It consist of equal volume of reps from both groupings i. e. employers and staff. They meet frequently for conversations on common problems of both communities and after dialogue, joint decisions are taken and such decisions are binding on both the parties. Some concerns like wage repayment, bonus, training, self-discipline, etc. are reviewed in such conferences.
In the start, the response of employers to Works Committee was stimulating but by the end of Sept 1951, the Works Committees had become and are 1142 in number. This original support and eagerness slowly but surely start fading away. In 1969 the National Commission rate on Labour found that Works Committees havent been effective.
In 1956, a report group of staff of labour and management was set up who visited many Traditional western countries to study labour participation plans. Then the analysis group advised the release of "Joint Management Councils" for personnel' involvement. The councils should be entitled to be consulted on certain specific issues. This may be related to economical situation of the matter, talk about of market, development and sales programme, gross annual balance sheet and long-term expansion plans. It had been provided that to work and more workable, it should contain equal amount of staff from both organizations i. e. employers and individuals.
Working connection with JMCs in India from 1958 to 1975 discovered a history with a rapid rise and growth as well as an equally rapid decline and fall. It has been observed that a huge number of the councils existed only in some recoverable format.
The employees' participation in management system of 1975 was the merchandise of new challenge that emerged as a result of the proclamation of Internal Crisis in June, 1975. The program envisaged setting up of shop councils at the shop/departmental level and joint councils at the organization level. This is the very first time when they were implemented in processing and mining device where 500 and more workers whether in public, private, or co-operative sector works.
Shop Council:- Every industrial unit utilizing 500 plus more personnel shall constitute a shop council for each and every office or shop or one council for more than one section or shop. All decisions of shop council will be on the basis of consensus and the decisions used there should be implemented by parties concerned within a month period unless mentioned otherwise.
Joint Councils:- Any professional unit utilizing 500 or even more workers is supposed to have a Joint Council for your unit. Tenure of the council will be two years. Every decision will be based on consensus rather than by a process of voting. Your choice will be binding upon both parties.
The schemes of individuals' participation in general management have failed in India. The reasons are:
Majority of employees in India aren't strongly motivated to believe decision making responsibility either straight or indirectly through staff. Reason for this can be their lower level limited needs.
In personnel' participation in management, the employees' associates have to suppose the dual role of spokesmen for the personnel and managers. Thus such employees are required to perform two incompatible tasks which creates problems in effective contribution.
In India, more emphasis has been directed at participation at the higher levels which means active involvement is confirmed and then a few and the creative probable of list and record of workers is disregarded.
There has been managerial amount of resistance to workers' participation techniques because they feel that workers aren't competent for taking decisions.
Generally, personnel' staff are also lively members of political parties. Because of which choice is directed at political ends somewhat than to the passions of workers. This brings down the potency of participation.
Participative management techniques have been inspired and sponsored by the Government. There's been too little initiatives on the part of managements and trade unions.
There have been labour lawful restrictions which pervade virtually every area of the task place.
The trade union movements has not yet crystallized into an absolute pattern.
From the things discussed above, it can be said that conditions in India havent been conductive to participative management. The trade union activity hasn't yet crystallized into a definite pattern. They are still dominated by politics and many trade unionists are communal parasites who are out to fish in stressed waters. In order long as it proceeds, workers can not be expected to show the responsibility necessary to ensure success of participative management.
On the medial side of management, there may be lack of positive response to make idea work. They aren't ready to shed down the power for reasons. Virtually all the schemes of involvement were creation of Administration and were enforced on unenthusiastic and even unwilling management.
The notion of participative management can only just work in India if managements believe of its merits and personnel are dependable enough to make it a success. Hence it is only succeed if and only when cooperation of both the parties is there. Here success is neither only of employers nor the employees but is designed for mutual advantage of both functions so that grievances and issues can be easily solved