V Theconcept of Workers· Participation in

Management (WPM) refers to participation of

non-managerial employees in the decision-
making process of the organization. Workers·
participation is also known as ¶labour
participation· or ¶employee participation· in
management.
V There can be 5 levels of Management Participation or WPM:

V Information participation:
V It ensures that employees are able to receive information and express their views pertaining to the matter of
general economic importance.

V Consultative importance:
V Here workers are consulted on the matters of employee welfare such as work, safety and health. However, final
decision always rests with the top-level management, as employees· views are only advisory in nature.

V Associative participation:
V It is an extension of consultative participation as management here is under the moral obligation to accept and
implement the unanimous decisions of the employees. Under this method the managers and workers jointly take
decisions.

V Administrative participation:
V It ensures greater share of workers· participation in discharge of managerial functions. Here, decisions already
taken by the management come to employees, preferably with alternatives for administration and employees
have to select the best from those for implementation.

V Decisive participation:
V Highest level of participation where decisions are jointly taken on the matters relating to production, welfare
etc.
V To build the most dynamic Human Resources.
V To satisfy the workers· social and esteem needs.
V To strengthen labour-management co-operation and
thus maintain Industrial peace and harmony.
V Its psychological objective is to secure full
recognition of the workers.
V Ascertain workers level of involvement in the
decision making process of their work places.
V Establish the general attitude of workers towards
worker participation in management decision
making.
V Unique motivational power and a great
psychological value.
V Peace and harmony between workers and
management.
V Workers get to see how their actions would
contribute to the overall growth of the company.
V They tend to view the decisions as `their own· and
are more enthusiastic in their implementation.
V Participation makes them more responsible.
V They become more willing to take initiative and
come out with cost-saving suggestions and growth-
oriented ideas.
Vþ

   


Some schemes of financial participation:
V Profit-linked pay
V Profit sharing and Employees· Stock Option
schemes.
V Pension-fund participation
V Management should be prepared to give all
information connected with the working of
the industry and labor should handle that
information with full confidence and
responsibility. The workers should become
aware of their responsibilities. The leaders
should initiate this in them. Similarly, the top
management should make the lower echelons
to show a new attitude in the light of the
new relationship.