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Participative Management refers to the process of
involving employees or employee representatives at
all levels of the decision – making process.
Participative Management is :
A process of involving those who are
influenced by decisions, in making decisions
Where everyone makes certain that
everyone gets their needs met
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The concept of “Participative Management” is closely related with the
concept of industrial democracy. Participative Management means
involving workers in the decision making process. Participative
Management is based on the concept that when the worker invests
his time and ties his fate to the workplace, he should be given an
opportunity to participate in the decision making process of the
management. The employee should be given an opportunity to
express his views and due importance should be given to them by the
management while framing policies. This concept was first developed
in western countries and was very successful. Therefore, it has
acquired world wide recognition and popularity.
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• It is not permissiveness. It holds people responsible.
• It is not weakness. It takes character to apply.
• It is not involvement in trivia. Only significant decisions
should go through the process.
• It does not mean giving up authority. We delegate authority with
matching amounts of responsibility and accountability.
• It does not mean giving up all decision making. We delegate
only the amount of decision making which is appropriate
under the circumstances.
• It does not mean postponing action. It should occur quickly and
avoid constant fixes.
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Skills required for Participative Management :
• Interest and concern
• Recognize and enhance talents in others
• Recognize and work around weaknesses in others
• Communication, particularly listening
• Conflict resolution
• Self control
• Negotiation
• Compromise
• Synergy
• Teach ability
• Flexibility
• Correction
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Participation at the board level
Participation through ownership
Participation through complete control
Participation through staff or works councils
Participation through joint councils and committees
Participation through collective bargaining
Participation through job enlargement
Participation through job enrichment
Participation through suggestion schemes
Participation through quality circles
Empowered teams
Total quality management
Financial participation
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Provides higher status to employees – Employees are given a chance to
participate in the decision making process of the organization. This
empowers the employees.
Provides psychological satisfaction to employees – Employees are
allowed to express their views and their views are given due
consideration. Management even frames some policies according to
their expectations.
Universally recognized concept – Participative Management is followed
and practiced in many countries.
Brings employees and management closer – Participative Management
facilitates meaningful communication and ensures cordial relations.
Beneficial to both parties – Participative Management is beneficial to
both parties; organization and employees. Through participative
management, both the parties are satisfied.
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Importance of Participation
 Employees identify themselves with the work, which leads to
improved performance.
 Employees feel motivated since they are involved in
management.
 This leads to self esteem, job satisfaction and cooperation of
employees with management.
 It reduces conflict and stress, resulting in more commitment
to goals and better acceptance to change.
 It results in better communication as people mutually
discuss work problems.
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Strong Trade Unions – Existence of strong trade unions with creative
& enlightened leadership is necessary for successful participation.
Favourable attitude of Management – The attitude of management
should be progressive & democratic. Due importance should be given
to employee’s views and suggestions.
Clear Understanding of Objectives – Employers & employees should
have clear understanding of objectives of the participation.
Participative management should not become a formality.
Education & Training of Workers – Employees & their representatives
should have adequate technical, financial & managerial knowledge.
Voluntary Participation desirable – Participative management should
be voluntary & not compulsory. Employees voluntary participation
largely influences the success of participative management.
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To give psychological satisfaction to workers
Cordial Labour – Management relations
Creating uniform approach of employers and workers
To raise industrial production
To create platform for direct negotiations
To create responsible approach among workers
To remove grievances of employees
To create a feeling of involvement among employees
To bring stability & prosperity to the business enterprise
To introduce industrial democracy
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• Technology & organization today are so complex that
specialized work roles are required for participation
• There is no evidence that participation is good for everybody
• Participative situation can be used to manipulate employees
by management or trade union or undercover cliques
• Presence of feudalistic concept of master & servant prevalent
in India leads to loss of interest on part of workers
• Trade unions indulge in politics & have little time to think
about participative management
• Unwillingness of the employer to share his power with the
workers representatives
• Perfunctory attitude of government towards participation
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Employee empowerment is a technique of involving employees in
their work through the process of inclusion. Empowerment
encourages employees to become innovators and managers of
giving them more control and autonomous decision making
capabilities.
This concept refers to enlargement of an employee’s job
responsibility by giving him the authority of decision without
approval of his immediate supervisor. The decision can be big or
small depending on the degree of power which the company
wishes to provide to the employees.
Further the employees are supported and encouraged to utilize
their skills, abilities and creativity by accepting accountability for
their work. This concept usually works when employees are
adequately trained, provided with all the relevant information. 12
• Accepts responsibility
• Avoids taking responsibility
• Being active
• Being passive
• Boldness
• Timidity
• Creative
• Conventional
• Energetic
• Lethargic
• Enjoys life
• Gets little joy out of life
• Happy
• Depressed and miserable
• Healthy
• Many health problems
• Imaginative
• Dull and unimaginative
• Independent
• Dependent
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• Individualistic
• Conforming
• Innovative
• Sticks to routines
• Interesting
• Dull and boring
• Motivated
• Unmotivated
• Prepared to take risks
• Reluctant to take risks
• Observant
• Unobservant
• Satisfied with job
• Frustrated in job
• Sensitive to subtleties
• Non sensitive to subtleties
• Uses full potential
• Uses only fraction of potential
• Uses intelligence to the full
• Doesn’t use full intelligence
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Share Leadership Vision
Share Goals & Direction
Trust People
Provide Frequent Feedback
Employee Evaluation & Assessment
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Employees must be encouraged to take control of their work
Environment must be receptive for employees with innovative ideas
& encourage people to explore and take reasonable risks at
reasonable costs
Employees must have access to a wide range of information
Employees should be held accountable for their behaviour towards
others
Culture of the organization should be open and receptive to change
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STAGE – I
Get the basics right by fully using current capability – The idea is to
empower people to the fullest extent of their current capability,
within the scope of their current job/task.
STAGE – II
Stretch people beyond their current capability to fulfill their full
potential – Enablers act as coaches to stretch people by delegation &
empowerment slightly beyond their current limits.
STAGE – III
Strengthen empowerment by creating commitment throughout the
organization – Foundation should be laid for a change of attitude &
behaviour in the organization as a whole.
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Collective Bargaining is the process whereby workers organize
collectively and bargain with employers regarding the workplace. In a
broad sense, it is the coming together of workers to negotiate their
employment.
In the words of Jucious, “Collective Bargaining refers to a process by
which employers on the one hand & representatives of employees on
the other, attempt to arrive at agreements covering the conditions
under which employees will contribute & be compensated for their
services”.
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Collective Bargaining allows both workers & managers to discuss
specific terms that can, depending on national law :
Determine the rules that govern their relationship
Determine wages
Deal with other matters of mutual interest such as :
Hiring practices
Layoffs and Promotions
Working conditions and hours
Work safety
Worker discipline and termination
Benefit programs
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Group Action as Opposed to Individual Action – Workers & managers collectively
bargain for their common interests & benefits. They jointly arrive at an amicable
solution through negotiations.
Flexible & Mobile and not Fixed or Static – It has sufficient flexibility, since no
party can afford to be rigid in such situations. It is not a one way street but a give
and take process.
Bipartite Process – It is a mutual give & take rather than a take it or leave it
method of arriving at the settlement of a dispute. Employers and employees
negotiate the issues directly, face to face across the table. There is no third party
intervention.
Continuous Process – It does not commence with negotiations & end with an
agreement. It is a continuous process which includes implementation of the
agreement and also further negotiations.
Dynamic & not Static – The way agreements are arrived at, the way they are
implemented, and the mental make up of parties involved keep changing.
Power Relationship – Workers want to gain the maximum from management, &
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management wants to extract the maximum from workers.
• Collective bargaining is a democratic method of regulating the
terms & conditions of employment. It is a voluntary process
without any third party intervention.
• Collective bargaining leads to mutual understanding between the
employers and workers.
• Collective bargaining provides a flexible means of adjusting wages
& conditions of employment to changes in economic, social,
technological & political environment.
• Under collective bargaining, basic standards are fixed and every
worker knows that he cannot be required to work under conditions
less favourable than those stipulated in the agreement.
• Collective bargaining facilitates better implementation of decisions
due to the direct involvement of both the parties. Parties know that
the decisions are their own & nobody has imposed them.
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• Since wages of the workers are pre decided under collective
bargaining, hence there are no performance based wages.
• Indian Labour owing mostly to ignorance or illiteracy, is not
capacitated with the responsibility to sit and discuss in the
course of Collective bargaining.
• Collective bargaining lacks representation of the public
interest at the bargaining table. When unions and companies
agree on wage increase, it might cause rise in price; then the
consumer will have to shoulder the full burden of their
agreement.
• Collective bargaining leads to wage drift. Wage drift leads to
higher wage costs for employers and higher inflation within
the economy, which in turn leads to higher interest rates and
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lower investment.
Conjunctive Bargaining – Employers & employees try to
maximize their respective gains. Issues like wages & bonus are
negotiated under conjunctive bargaining. The principle “my gain is
your loss & your gain is my loss” is practiced in conjunctive
bargaining.
Cooperative Bargaining – Both parties realize the importance of
surviving in difficult times & are willing to negotiate the terms of
employment in a flexible way.
Productivity Bargaining – Worker’s wages & benefits are linked
to productivity. If they are able to exceed the standard
productivity norms, they will get substantial benefits.
Composite Bargaining – Labour not only bargains for wages but
also demands equity in matters relating
employment levels, manning standards, etc.
to
work
norms,
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Steps involved in the process of Collective Bargaining are :
Planning for Negotiations – Employers and employees prepare a plan for
discussing the complex issues and the broad range topics.
Identifying Bargaining Issues – Different types of bargaining issues are
identified during collective bargaining.
Conducting Negotiations – Demands of both the employer and
employees are determined. Negotiation process continues until the final
agreement is obtained.
Accomplishing the Agreement – It involves implementing and achieving
that agreement.
Passing the Agreement – The agreement is examined and converted into
a legal contract.
Monitoring the Agreement – It is ensured that the agreement is
implemented according to the issues mentioned in it.
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Trade unions should be made stronger & responsible so that they
are able to honour the collective agreements.
Government should encourage the parties to settle their disputes
through negotiation consistent with public safety & social interest.
Compulsory adjudication of disputes should be used only as a last
resort.
Workers should be educated so that they are able to build internal
leadership and free unions from political control.
Both parties should develop a positive attitude towards each other.
They should try to understand the viewpoints of the other side.
Collective bargaining should be restricted to matters concerning
interests. Disputes concerning rights would be better settled through
grievance machinery.
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Changes in technology & its impact on employees
Rules and regulations pertaining to work
Grievances & grievance handling procedures
Techniques & practices pertaining to work
Wages & working conditions
Transfer & promotions
Incentive payments
Discipline & disciplinary procedure
Job security
Employee benefits
Recognition of employee’s unions
Union activities & responsibilities
Management rights
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Weak Unions – Indian unions are marked by multiplicity, inter & intra union
rivalry, weak financial position and non recognition.
Problems from Government – The regulatory framework covering industrial
relations scene is quite tight, leaving no scope for voluntary bargaining.
Legal Problems – No attempt has been made by Government to simplify the
multifarious laws covering labour management relations.
Attitude of Management – Employers do not appreciate the fact that unions have
come to stay with almost equal bargaining strength.
Employers Uncertainty about Who is the Recognized Bargaining Agent – When
there are multiple unions, bargaining with one union may be a tough battle.
Statutory Fixation of Conditions of Work – Encouragement is given to wage
boards, pay commissions, statutory fixation of other conditions of work and social
security measures.
Political Interference – Political parties interfere in the smooth functioning of the
union.
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A favourable political climate – Government should remove all legislative
restrictions which hamper collective bargaining.
Freedom of association – It can be facilitated by leaving workers & employers
free from associations as they please. Employees should be free to form trade
unions as they are required to bargain with the employer on equal basis.
Stability of trade unions – If a union is weak & unstable, employers will refuse to
recognize it or negotiate with it. Union should exercise authority over its
members & its membership should be sufficiently stable.
Recognition of trade unions – Both employer & employees should give
recognition to representative trade unions. Recognition improves industrial
relations & this may react favourably on productions.
Willingness to “Give & Take” – One side should agree to reduce its demand on
one item in return for some concession by the other side.
Mutual Recognition & Respect – Management has the right to manage & Union
has the right to organize itself & fight for justice. This must be fully recognized
and accepted by both sides.
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• Books :
Participative Management : Implementing Empowerment
by Lorne C. Plunkett, Robert Fournier
Collective Bargaining : Perspectives and Practices by
B.R.Patil
• Article :
Participative Management – A motivation technique
• Internet Websites :
www.hubpages.com
www.wiki.answers.com
www.elsmar.com
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