AN ECONOMIC ANALYSIS OF WORKERS PARTICIPATION IN MANAGEMENT

INTRODUCTION

            A scheme of workers’ participation in management is devised to ensure effective consultation with workers on points which ultimately concern them. The notion make the workers’ feel that they have better understanding of the industrial process in which they take part and gives them a sense of direct participation in industrial decisions. The workers must be increasingly associated with the management of industrial undertakings so that they develop an awareness the problems of industry and begin to feel that they have a positive contributions towards the goal of business organization.

            The principle of participation seeks to meet the psychological needs of the workers, brings them closer to the management, promotes their interest in self education, gives them an insight into the economic and technical conditions and the purpose of the undertaking where they work and serves to bridge the gulf between the management and the workers.

Meaning:

            The term ‘Workers’ Participation in Management’ has been given several meanings. However, it is a process in which the authority and responsibility of managerial functions are shared with workers also. It is a device of ensuring effective consultation with workers on the points that are related with them. It is considered as a system of communication and consultation also by which the employees of an organization are kept informed about the problems and progress of their organizations. Through this system, they express their opinion on the problems of their industry and thus, contribute to management decisions.