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Industrial Democracy

Industrial Democracy. Sughosh Tembre. Agenda. Basic Concepts – Management, Motivation, Industry & Democracy Empowerment Quality Circles Worker’s Participation in Management (WPM) Forms of WPM WPM in India & Abroad Evaluation of WPM Grievance & Discipline. Basic Concepts.

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Industrial Democracy

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  1. Industrial Democracy Sughosh Tembre

  2. Agenda • Basic Concepts – Management, Motivation, Industry & Democracy • Empowerment • Quality Circles • Worker’s Participation in Management (WPM) • Forms of WPM • WPM in India & Abroad • Evaluation of WPM • Grievance & Discipline

  3. Basic Concepts • Management - Act of getting people together to achieve goals • Motivation - Arousing action towards a goal • Industry - Systematic activity to satisfy human needs • Democracy - Power to elect representatives & make decisions

  4. Behavioral Science Two Factor Achievement Model ERG Theory Need Hierarchy Self Actualization Growth - Achievement Motivators Self Esteem Relatedness - Power Belongingness - Affiliation Safety & Security Hygiene Existence Physiological Maslow Alderfer Herzberg McClelland

  5. Empowerment - Process of enhancing feeling of self efficacy by providing sense of owning a job. - It is passing of authority & responsibility at lower levels - It also involves removal of conditions that foster powerlessness Empowerment Stages Identify Implement Remove Observe Conditions of Powerlessness Empowerment Strategies Conditions of Powerlessness Feeling of Empowerment Eg. 1. 5S at LG 2. Gate Pass Security System at TML

  6. Quality Circle • Voluntary Group of Workers usually under the leadership of their supervisor who meet regularly • They are trained to identify, analyse and solve work-related problems using proven techniques • Present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employee • It is participative management technique, which inculcates performance driven work culture

  7. Workers Participation in Management • Philosophy: Participation in Decision Making, Collaboration, Social Justice, Industrial Efficiency & Organizational Culture • Concept: Case Study 1 - eChoupal

  8. Objectives of WPM • To raise level of motivation of workers by closer involvement • To provide opportunity for expression and to provide a sense of importance to workers • To develop ties of understanding leading to better effort and harmony • To act on a device to counter-balance powers of managers • To act on a remedy for solving industrial relation problems

  9. Forms of WPM Board Level Ownership Financial Participation Eg. Amul Eg. ITC Eg. Bank of Maharashtra WPM Collective Bargaining SDT Eg. Bajaj, TML, Cummins Eg. Milton Quality Circles Joint Mgmt. Committees Eg. M&M Eg. SKF Suggestion Schemes Job Design Works Council Eg. Eicher Motors, Maruti Eg. Behr, Gabriel Eg. Kirloskar Bros.

  10. WPM in India • 1947 - ID Act • 1958 - Ind. Policy • 1970 - Nationalization • 1975 - Article 43 A • 1985 - ESOP • Works Committee • Joint Mgmt. Committees • Director on Banks • WPM • Workers Share in Equity

  11. WPM in Germany & Yugoslavia

  12. Evaluation of Effectiveness • Managerial Attitude • Union Co-operation • Meaningful Participation • Worker’s Attitude

  13. Grievance & Discipline

  14. Group Activity

  15. Concepts • Dissatisfaction: Anything disturbs an employee, whether or not the unrest is expressed in words • Complaint: A spoken or written dissatisfaction brought to the attention of the supervisor or the shop steward • Dispute: Differences between parties on employment / non employment / conditions of employment. • Grievance: A complaint that has been formally presented to a management representative or to a union official.

  16. Grievance • Discontent or Dis-satisfaction with Organization • Must arise out of employment • Can be Real, Imaginary or Dis-guised • Voiced or unvoiced - Perceived non-fulfillment of one’s expectation from organization Case Study 2 - Air India

  17. Causes of Grievance

  18. Grievance Discovery • Observation • Grievance Procedure /Forum • Gripe Boxes • Open Door Policy • Exit Interview • Opinion Surveys

  19. Objectives of Grievance Handling Benefits of Grievance Handling It encourages employees to raise concerns without fear of reprisal It provides a fair and speedy means of dealing with complaints It prevents minor disagreements developing into more serious disputes It saves employers time and money as solutions are found for workplace problems It helps to build an organisational climate based on openness and trust. • To enable the employee to air his/her grievance • To clarify the nature of the grievance • To investigate the reasons for dissatisfaction • To obtain, where possible, a speedy resolution to the problem • To take appropriate actions and ensure that promises are kept

  20. Grievance Handling - Process

  21. Steps in Grievance Handling Participative Prompt & Fair

  22. Discipline • Discipline should be viewed as a condition within an organisation whereby Employees know what is expected of them in terms of the organisation’s rules, Standards and policies and what the consequences are of infractions. Self - Discipline Negative Discipline Positive Discipline TML - Discipline Case

  23. Disciplinary Action Procedure Decision Preliminary Enquiry Drop charges Complaint Appeal Show cause / Charge sheet Major Minor Explanation Punishment Decision Notice of Enquiry Enquiry & Report

  24. Thank You! • sooghosh@yahoo.com

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