UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

MEANING AND DEFINITION
LESSON - VI
WORKERS AND MANAGERIAL DECISIONS
“ The concept of worker’s participation in management crystallizes the concept of
industrial democracy, and indicates an attempt on the part of an employer to build his
employees into a team which works towards the realization of common objectives”
The concept of worker’s participation aims at providing an opportunity to the
workers to take part in the management decision-making. Worker’s participation is
adopted and practiced differently in different organizations while in some places, the
employees might be required to just give their suggestions and the final decision-making
authority vests with the management, in other places, the workers might be involved in
taking only operational decisions. In some other places, however, workers might get to
actively participate in all the decisions of the organization, including those at the strategic
level.
Workers participation in management can be in any shape, from establishing workcommittee
to auto-management by the employees. The aim of management is to get wok
through others. Workers, if they are permitted to participate and involve themselves in
some of the decisions relating to work situation, etc., perhaps more effectively the
company objectives can be achieved.
LEVELS OF PARTICIPATION
The degree of influence that workers are allowed to exercise can be classified into five
levels - from the minimum to maximum degree of participation. These levels are:
INFORMATIVE PARTICIPATION
At this level of worker’s participation, information regarding the balance sheet, production
targets, new technology introduction etc. is shared with the workers. It is a one-way
communication from the management to the workers. The workers have no role to play in
organizational management.
CONSULTATIVE PARTICIPATION
Worker representatives in different forums like work committees and joint management
councils are consulted on matters such as employee benefits, employee welfare and work
conditions. The recommendations of the worker representatives are given due
consideration, but the final decision-making authority vests with the management.