The concept of workers’ 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 workers towards the realization of a common objective.
It increases productivity for the general benefits of the enterprise, the employers, and the community.
Need and Importance of Participative Management
Participative management has assumed great importance these days because of the following advantages:
1. Reduction in Industrial Unrest
Conflicts arise due to the self-interested behavior of the other.
Worker’s participation cuts at this very root of industrial conflict.
It tries to remove or at least minimize the diverse and conflicting interests between the parties.
It creates cooperation, unity of objectives, and common interests.
2. Removal of Misunderstanding
Participation helps to dispel employee’s misunderstandings about the outlook of management in the industry.
These misconceptions would otherwise die hard, and their damaging effect needs no explanation.
3. Harmonious Relations
Workers’ participation in management (WPM) helps in developing a technology to resolve conflict and to achieve constructive cooperation among the partners of production.
4. Higher Productivity
Increased productivity is possible only when there exists the fullest cooperation between labor and management.
It has been empirically tested that poor labor-management relations do not encourage the workers to contribute anything more than the minimum desirable to retain their jobs.
Thus, the participation of workers in management is essential to increase industrial productivity.
5. Improved Communication
Participation tends to break the barriers of communication flow.
It makes the information and the consequences of the implemented decisions, available to the managers.
6. Industrial Democracy
Participation helps to usher in an area of democracy in industry. It is based on the principle of recognition of the human factor.
It tends to reduce class conflict between capital and labor.
It also serves as a support to political democracy.
WPM is the first step to establish democratic values in society at large.
7. Increased Commitment
Participation creates greater commitment towards organization and work.
Worker’s involvement provides an opportunity to express themselves at the workplace rather than being absorbed into a complex system of rules, procedures, and bureaucratic system.
It creates a personal sense of gratification.
8. Individual Growth
WPM enhances worker’s creativity. It improves response to job challenges.
It also improves a worker’s natural ingenuity and ability to give creative ideas.
If participation is allowed, workers will be encouraged to improve their initiative, creativity, and expectations.
Thus, facilitates an individual’s growth.
9. Social Justice
In the view of social thinkers workers, participation in management should be encouraged for achieving social justice.
It prevents worker exploitation.
It is a human approach to work.
10. Establishment of Socialist Society
Through participation in management, workers can be made to feel that they are helping to build a progressive state.
The creation of industrial democracy is thus a prerequisite to the establishment of a socialist society.
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