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

• Satisfying the workers urge for self-expression, thus leading to industrial peace,
better relations and increased cooperation
• The Government of India accepted that the representatives of workers should be
taken on the board of directors of public sector enterprises. The worker director
(representative of the workers) is to be elected by all he workers of the company
through a secret ballot.
• Another tool that has become popular as a form of participative management in an
organization is the employee stock option Plan (ESOP). ESOPs offer emotional
and financial ownership to the employees.
PRE-REQUISITES FOR SUCCESSFUL PARTICIPATION
For worker’s participation to be successful, there is a need to have:
• A healthy work atmosphere that motivates employees to participate in the decisionmaking
process. Frequent conflicts in industries frustrate workers and they do not
show interest in decision-making as they feel that they management is averse to
proposals made by the workers.
• It is the responsibility of both the workers and the management to put in their best
efforts, talents and resources for the realization of their goals.
• There should be total agreement between both parties regarding the functioning of
the participation schemes. This will ensure the willingness of both the parties to
participate in the [progress and functioning of the schemes.
• Frequent meetings between the two parties will reduce he communication gap and
help in implementing decisions at the right time.
• The participation schemes in an organization should be introduced at he shop floor
and plant level. Until these are underway, the scheme of workers involvement at
the board level should not be introduced.
• Workers training and education should be given importance so that the workers
can understand the importance of their participation and its beneficial effects for
the organization.
• The programs for training and development should be formulated comprehensively
so that the workers are able to comprehend the various aspects of management.
• To make the employees participate actively, their suggestions should be taken into
account and if the suggestions are good, they should be implemented immediately.
This would increase employee contribution and cooperation.