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PARTICIPATIVEMANAGEMENTAND

OWNERSHIP

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DEFINATION OFPARTICIPATION

Keith Davis has defined the termparticipation as the mental andemotional involvement of a person in

a group situation which encourageshim to contribute to group goals andshare responsibilities in them.

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ELEMENTS OFPARTICIPATION

Mental and emotionalinvolvement.

Participation must motivate aperson to contribute to a specificsituation to invest his ownresources.

It encourages people to shareresponsibility for a decision oractivity.

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FORMS OFPARTICIPATION

Collective Bargaining:Collective bargaining results incollective agreements which lay down certain rules andconditions of service in an establishment. Such agreements arenormally binding on the parties.

Works councils:These are exclusive bodies of employees,

assigned with different functions in the mgt. of an enterprise.

Joint Mgt. Councils and Committees: Mainly these bodies areconsultative and advisory,with decision-making being left to thetop mgt.. This system of participation is prevalent in manycountries, including Britain and India.

Board Representative:The role of a worker representative inthe board of directors is as negotiatiater of workers interest withthe other members of the board.

Workers Ownership of Enterprise:There exist two distinctmanagerial and operative functions with different sets of persons

to perform them.

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OBJECTIVES OFPARTICIPATION

To raise level of motivation of workers bycloser involvement.

It is an opportunity for expression and toprovide a sense of importance to workers.

It forges ties of understanding, leading tobetter effort and harmony.

It is a device to counter-balance powers ofmanagers.

It is panacea for solving industrial relationproblems.

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EFFECTS OF PARTICIPATIVEDECISION-MAKING (PDM)

MORECREATIVEIDEAS

INCREASEDPRODUCTIVEEFFICIEN

CY(OUTPUTDECISIONQUALITY)

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WORKERS PARTICIPATIONIN INDIA

In India it is a new concept, but there are a few instances:

1920-Informal joint counsultation in the Govn. PrintingPress, Tata Iron and Steel Company, and in theRailways.

1929-31- Royal Commission on Labour recommendedthe formation of works committees.

1938- Workers participation in mgt. by electingrepsentative of workers on board of directors in TheDelhi Cloth and General Mills Ltd.

1947-The U.P. Industrial Disputes Act provides for theformation of works councils in State govn. Undertakings

employing 100 or more workmen. 1972- The Govn. Of Gujarat by the B.I.R. (Gujarat

Amendment) Act, 1972 have made it compulsory forindustrial establishments employing 500 or moreworkmen to set up joint mgt. councils.

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PARTICIPATION/ CONSUTATION ATTHE SHOP & COMPANY FLOOR

LEVELS IN INDIASince Independence, various schemes have been formulated

to provide for employee participation/consultation at thecompany and shopfloor levels. Some of these are:

1947: Works Committees

1958: Joint Management councils

1970: Employee Directors in Nationalised Bank

1975: Amendment to the Constitution & the WorkersParticipation

1977: Scheme of Workers Participation in Management

1983: The 1983 Scheme

1985: Workers Share in Equity

1990: The 1990 Bill

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WORKERS PARTICIPATION IN

MANAGEMENT

Managerial attitude

Union cooperation

Meaningful participation Workers attitude

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EXPERIENCES

INDIA

GERMANY

YUGOSLAVIA

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OWNERSHIP

EMPLOYEE ownership received much attention inWestern economies in the 1970s and 1980s.

Employee stock ownership plans are defined insections 401(A) and 4975(E) (7) of the Internal

Revenue Code and in section 407(D) (6) of theEmployee Retirement and Income Security Act(ERISA).

These and all other federal laws mentioningESOPs treat them as employee benefit plans.

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BENEFITS OFOWNERSHIP

Improved employee attitudes.

Better rganizationalperformance.

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THANK

YOU!!!