IRJC
International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 9, September 2012, ISSN 2277 3622
A STUDY OF WORKERS PARTICIPATION IN MANAGEMENT
DECISION MAKING AT BHEL, HYDERABAD
DR. G. RATHNAKAR*
*Associate Professer,
Department of Management,
Kakatiya Institute of Technology & Science,
Warangal, A.P. - 506015.
ABSTRACT
This paper is concerned with an investigation of the existing level of Worker Participation in
Management Decision making within the BHEL (Bharat Heavy Electrical Ltd.) environment.
The study involved a survey in which a total of hundred non management employees drawn.
Interview schedule and in-depth interview were the main research techniques adopted for
data collection while percentage distribution and simple random sampling techniques were
used to analyze the data collected for the study. Results show that employees in organizations
demonstrate a high interest in participation in the decision making process within their
respective work places. However, the actual level of involvement in management decision
making demonstrated by the employees was found to be relatively low. There is significant
relationship between education and employees‟ involvement in decision making, and as well
as between frequency of employees‟ consultation and organizational commitment. The study
reveals a growing desire of non-management employees in the work environment to exercise
greater involvement in the decision making process of the enterprise. Majority of the
employees informed that decisions taken at the committee meetings are implemented, has the
positive opinion about the councils working and performance, the organization has been
considering the pre-requisites of successful workers participation and feels that shop council
and plant council benefit the organization to great extent.
KEYWORDS: Employees; Democracy; Involvement; Attitude; Work.
_______________________________________________________________________
1. INTRODUCTION
The concept of worker participation represents a popular theme in the analysis of the world of
work among scholars in the fields of Industrial Sociology, Industrial Relations as well as
www.indianresearchjournals.com
Management. It refers to any arrangement which is designed to involve low cadre employees
(workers) in the important decision making within the workplace. This implies that rather
than saddling only a group within the enterprise (for instance, Management) with the
responsibility of making decisions, all those who are to be affected by these decisions
(including the workers) would be involved in its formulation and implementation.
Workers' Participation in Management John Leitch has defined Industrial Democracy
as "the organization of any factory or other business institution into a little democratic state
with a representative government which shall have both the legislative and executive phases".
In the same manner as political democracy has converted subjects into citizens, with right of
self-determination and self-government, industrial democracy converts the workers from the
mere subjects obeying the orders of the employers, into citizens of the industrial world, with
135
IRJC
International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 9, September 2012, ISSN 2277 3622
a right to self-determination and self-government, that is, representative participation in
making rules and enforcing them. This is known as Workers' Participation in Management,
workers' participation in management means giving scope for workers to influence the
managerial decision-making process at different levels by various forms in the organisation.
The principal forms of workers' participation are information sharing, joint consultation,
suggestion schemes, etc.
In recent time, scholars have directed increasing attention to the issue of worker
participation and its broader corollary, industrial democracy (Mankidy, 1984: Yesufu, 1984,
Adewumi 1989; Verma and Syha; 1991, Weller 1993; Kester and Pinaud, 1996; Adu-
Amankwah, K. and Kester, G. 1999). These concerns reflect a growing interest in finding
ways to make work more meaningful and satisfying to the workers. This rest on the belief
that the organizational goals of high productivity and harmonious industrial relations are best
achieved when the higher level needs of the human elements (workers) are satisfied.
Worker participation implies arrangements designed to involve workers in the
enterprises decision making process. This allows for workers' involvement in the initiation,
formulation and implementation of decisions within the enterprise. The concept can also be
understood in terms of a new approach to industry and society in which people want to be
interested with the taking of decisions which have direct bearing on them.
Mc Gregor (1960) contends that worker participation consists basically in creating
opportunity under suitable conditions for people to influence decisions which affect them. It
is a special case of delegation in which the subordinate gain greater control, greater freedom
of choice with respect to bridging the communication gap between the management and the
workers. This serves to create a sense of belonging among the workers as well as a conducive
environment in which both the workers would voluntarily contribute to healthy industrial
relations.
According to the International Institute for Labor studies "Workers Participation in
Management is the participation resulting from practices which increase the scope for
employee's share of influence in decision-making at different tiers of organizational hierarchy
with concomitant assumption of responsibility".
In the words of Davis "It is a mental and emotional involvement of a person in a
group situation which encourages him to contribute to goals and share responsibilities in
them".
www.indianresearchjournals.com
2. ORIGIN AND GROWTH OF WORKERS PARTICIPATION
The origin and concept of Workers Participation in Management can be traced back to the
writings of Fabian socialists headed by Sydney web that highlighted the economic and social
disorders of industrially developing countries and stressed the need for unity and cooperation
among partners of production. The concept received further impetus from the origin and
growth of political democracy in many parts of the world. It came to be believed that political
democracy could not survive unless economic and industrial democracies were also achieved.
Many writers advocated that just as people should have the right to choose their governments,
the workers too should have the right to influence the managerial decisions, if not the right to
choose the management. Many writers in the field of management emphasized the human
side of enterprise and came to be collectively designated as the behaviouralists. In India
136
IRJC
International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 9, September 2012, ISSN 2277 3622
Mahatma Gandhi mooted the idea of Workers Participation in Management through his
concept of trusteeship.
Firstly, the demand of continuous production during the two world wars prompted the
managers to introduce such strategies as would ensure uninterrupted industrial activity.
Secondly, the differentiation between Management and Entrepreneurs accelerated the pace of
professionalization in Industrial Management.
It was during the days of the world war that the concept found its first practical
application. Faced by the twin problems of maintaining industrial peace and improving
productivity, the Governments in many belligerent countries persuaded management's to
establish joint committees for expeditiously resolving these problems through consultation. In
the United Kingdom following the recommendations of the Whitley committee a well-knit
three-tier consultative system came into being. It consisted of works committees at the plant
level, district councils at the district level and the joint industrial councils at the industry
level. However, with the cessation of hostilities in 1918 and the onset of economic depression
in 1921 the idea of joint consultation received a setback. The interest of the working class
now shifted toward nationalization and centralized planning because these were considered to
be the most appropriate remedies for economic stagnation and unemployment.
Today, the idea of workers participation has become institutionalized in several
countries of the world. The schemes, however, widely vary from one country to another in
respect of range of subjects handled by participation machinery, in the degree of authority
exercised with regard to these subjects, and in the methods of selection of workers
representatives. Thus, we have workers self-management in Yugoslavia, co-determination in
federal republic of Germany and mere consultation in India.
3. RATIONALE OF THE STUDY
3.1 To recognize the importance of participative management to resolve industrial
disputes and increasing production simultaneously.
3.2 To know the mutual cooperation of employees in achieving industrial peace,
greater efficiency and productivity in the interest of the enterprise, the workers, the
consumers and the nation. To know how trade unions cooperating with the
empowered employees in managerial decision making.
3.3 To investigate the implications of workers participation to worker and their
www.indianresearchjournals.com
organization.
3.4 To identify the importance of participative management to improve quality of
managerial decisions and team work.
3.5 To determine factors which aid or hinder the observed level of participation?
4. OBJECTIVES OF THE STUDY
The central objective of the study is to determine the level of worker participation in
management decision making in the specific objective are
137
IRJC
International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 9, September 2012, ISSN 2277 3622
4.1 To ascertain workers level of involvement in the decision making process of then-
work places.
4.2 To establish the general attitude of workers towards worker participation in
management decision making.
4.3 To determine factors which aid or hinder the observed level of participation?
4.4 To investigate the implications of worker participation to worker and their
organizations.
4.5 To propose suggestions to overcome the encountered lapses.
5. SCOPE OF THE STUDY
Scope of the study is confined to, what are the various facets and incentives of the
organization, which are motivating the employees to stay with the organization. To find out
what aspects are satisfied and dissatisfied by the employees of the organization and the
difference in the satisfaction level of executives of Non-executives.
6. RESEARCH METHODOLOGY AND DESIGN
The study adopted the case study approach for the purpose of conducting an empirical
investigation to the issue of Worker Participation in Management Decision Making in BHEL
work environment. The study was conducted and data were collected both through the
primary and secondary source
Primary sources of data were derived from the questionnaire and in-depth interview
from employees of all departments in BHEL like HR, Finance, Production, and Sales &
Marketing. The questionnaire was in three sections - the first contained questions on
respondent‟s personal data, the second on the level of worker participation while the third is
on worker participation structures.
Secondary source from company records, bulletins and other official documents. The
adoption of these tools helped to collect both quantitative and qualitative data.
A sample of 100 employees out of 3500 has been chosen for the study and simple
random sampling technique is used to select the sample for conducting the study.
www.indianresearchjournals.com
7. CONFINES OF THE STUDY
7.1 The study is related to only BHEL RC. Puram, Hyderabad.
7.2 The sample size was 100 employees including executives and supervisors.
7.3 The results are based on information provided by respondents.
138
IRJC
International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 9, September 2012, ISSN 2277 3622
8. FINDINGS AND DISCUSSION
8.1 The BHEL employees are satisfied with the functioning of the management in
Participatory machineries and are initiative in organizational interest which is
effective and efficient in functioning.
8.2 Majority of the employees agreed that management have a positive attitude
towards staff and they are treated with respect at their work places and the
participation is confined to only workers.
8.3 The organization conducts sufficient number of training programmes and each
and every one employee is very proud to work for BHEL.
8.4 Majority of the employee‟s converse that workers participation in management
improves understanding between managers and workers and the method which
is mostly used in WPM is joint management councils.
8.5 The employees have the opinion that workers needs trade unions to protect their
interest and are satisfied with the various legislation implemented by the
company and they view is that interpersonal relationship among employees is
seen in respectable manner and agreed that the cooperation of trade unions is
necessary to empowered employees for their participation in managerial
decision making. And the change is that, management has brought to their
personal development through participation is recognition.
8.6 Most of the employee‟s consent that committee members share the information
with their colleagues after the meetings and that workers desire to participate in
decision making in organizations.
8.7 The employees feel that conflict of interests between labor and management
leads to failure of workers participation in management and they did not agree
that WPM weakens the trade unions.
8.8 Majority of the employees says that workers participation in management
improves understanding between managers and workers and the method which
is mostly used in WPM is joint management councils and communicated that
decisions taken at the committee meetings are implemented and has the positive
opinion about the councils working and performance.
www.indianresearchjournals.com
8.9 Maximum of the employees feel that WPM provides better understanding to
employers and employees about their role and process of attainment of
organization goals and the organization has been considering the pre-requisites
of successful workers participation.
8.10 Majority of the employees feel that shop council and plant council benefit the
organization to great extent and agreed that plant council plays an important role
in operational areas, economical areas and welfare areas of the organization.
139
IRJC
International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 9, September 2012, ISSN 2277 3622
9. SUGGESTIONS
9.1 From the analysis it is clear that Workers Participation in Management is positive
in BHEL, Ramachandrapuram unit, Hyderabad. Some of the employees responded
that management cooperation is poor so it should be improved by free flow of
communication and information with the workers Management should evolve a
system of sharing the fruits of participation.
9.2 WPM schemes are not successful in organization so it should be improved by
making aware of those schemes for all the employees in the organization.
Management should develop a favorable attitude of workers towards the schemes
of participative management.
9.3 Most of the employees agree that conflict of interests between labor and
management leads to failure of WPM so management should take the proper steps
to reduce the conflicts between the labor as well as top level. Serious attention has
to be given to the removal of hurdles.
9.4 A quantity of the employees responded that participation management in peaceful
settlement of industrial disputes is poor. The management should try to reduce the
industrial conflicts between the employees and employers. There should be trust
between the two parties.
9.5 The management should focus on Workers Participation in Management Schemes.
It should be properly done which would adversely affect all the activities of the
organization. Effort should be made to stir up the workers at the enterprise level to
understand the schemes.
10. CONCLUSION AND RECOMMENDATIONS
Workers Participation in Management has assumed great importance these days
because it reduces industrial unrest and helps in dispelling employees‟ misunderstanding
about the outlook of management in industry. The organization is giving utmost importance
to the workers‟ Participation in Management. The organization has been seen to practice
sound participative mechanism. There exist a healthy sign of team spirit and co-operation
among the employees in the organization. The employees seem to understand and co-operate
with each other in the organization. Workers Participation in Management may reduce
alienation or increase personal fulfillment of workers. It also influences efficiency in various
www.indianresearchjournals.com
direct and indirect ways. Careful measurement and calculation are required to assess the net
effect of participation upon efficiency and economic factor.
Workers Participation in Management is respectable at BHEL. And employees
believed that they will definitely get benefit hence, participation is confined to all the
members in the organization and considers them at different levels of decision making.
Employees acquiesce that committee members share the information with their colleagues
after the meetings, the workers participation in management improves understanding between
managers and workers and informed that joint management councils is the method of WPM
which is used mostly in the organization.
140
IRJC
International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 9, September 2012, ISSN 2277 3622
REFERENCES
1. Bansal, P. C. (2007). Organizational Culture and Employee‟s Morale. Indian Journal
of Industrial Relations,43(2): 291-295.
2. Bernstein, Paul (1982) Necessary Elements for Effective Worker Participation in
Decision-making. In Workplace Democracy and Social Change. Frank Lindenfeld
and Joyce Rothschild Whitt (eds.), 51-81. Boston, MA: Porter Sargent.
3. Buchko, Aaron A. (1993) „The Effects of Employee Ownership on Employee
Attitudes: An Integrated Causal Model and Path Analysis. Journal of Management,
30: 4, 633-657.
4. Cooke, W.N. (1992), “Product Quality Improvement through Employee Participation:
The Effects of Unionization and Joint Union-Management Administration, ‟
Industrial & Labor Relations Review”, vol. 46, no.1. pp 119–134.
5. Kelley, M. R., and B. Harrison. (1992). “Unions, technology and labour management
co-operation”, in L. mishel and P.B. Voos (eds)
6. Mankidy, J. (1984). „„Employee Involved decision making in India: Retrospect and
Prospect ”. Labour and Society, 3: 239-242.
7. Pylee, M. V. (1995). Workers Participation in Management–Myth and Reality. N.V.
Publication: New Delhi.
8. Rathnasen: (2009) Industrial relations, Mac million India limite, New Delhi,.
9. Sinha : Industrial relations, trade unions and labour legislation, Pearson Education 4 th
Ed.
10. Srimannareyana, M. (2009). Measurement of Human Resource Activities in India.
Indian Journal of Industrial Relations, 45(2): 265-276.
11. Sundaray, B. K. (2007). Human Resource Management, A book review. The Indian
Journal of Industrial Relations, 43(2): 296-300
12. Venkataratnam, C.S : " Management of Iindustrial Relations " OXFORD University.
www.indianresearchjournals.com
13. Verma, R.K. and P. R. Syha. (1991). Workers Participation in Management. New
Delhi: Oxford Publication Co.
14. www.bhel.com
15. www.google.com
16. www.msn.com
141
