5 Functions | Reasons of Failure | Objectives of Joint Management Councils

Workers’ Participation in Management is an essential ingredient of Industrial democracy. Workers’ participation in management is related to the Human Relations approach, which brought a new set of values to labor and management. In India, workers’ participation comes in three forms: the works committee, joint management councils, and schemes of workers’ representatives on the board of management in some public and private sector enterprises. In the following article, objectives, functions, reasons of joint management councils.

Meaning of Joint Management Council

The Industrial Policy Resolution of 1956 stated that in socialist democracy, labour is a partner in the standard development task and participates in it enthusiastically. There should be joint consultations and work, and technicians should, whenever possible, be associated progressively with management. The Government appointed a study group to see the experience of other countries also in this regard.

The Government recommended a scheme for the Joint Management Councils in 1958. Its introduction was left solely to the discretion of employers & employees. These councils will consist of equal no. of representatives of employees & employers, not exceeding twelve. The Council addresses issues related to accident prevention, management of canteens, water, meals, revision of work rules, absenteeism, indiscipline, etc.

Top 5 Objectives of Joint Management Council

The main objectives of joint management council are:

1. Promote healthy relations between management and Workers.
2. Build trust & understanding b/w management and workers.
3. Improve Worker Efficiency.
4. Provide Welfare facilities to the workers.
5. Educate workers about the scheme for their increased participation.

These are important main objectives of joint management councils and now we will move on to the functions of joint management councils that play a crucial role in the management.

Most Effective 4 Functions of Joint Management Councils

These are the functions of joint management councils and we will mention them in the below section.

1. The Council is to be consulted by management before introducing changes in the modes of production, production schedule, general administration problem, etc.
2. The Council is to receive information, discuss and give suggestions on general economic situations, state of the markets, production & marketing programs, organization & general functioning of the concern. Also, methods of production & work, balance sheet & profit & loss account, long-term Capital budgeting decisions, and plan for expansions, modernization & development are within the scope of the Joint management council.
3. The Council is to take up accident prevention, management of canteens, water, meals, safety, issue & revision of work rules, avoidance of waste of time & materials, absenteeism, indiscipline, training, etc. Thus, the Councils are responsible for the administration, welfare measures, and supervision of safety and health schemes. Therefore, the employers should provide the employees with vocational training and apprenticeship schemes, scheduling of working hours, breaks and holidays, and rewards for suggestions.
4. Wages, bonuses, individual grievances, personal problems of workers, and matters of collective bargaining are outside the scope of the joint management council.

Top 7 Reasons of Joint Management Councils

The beneficial results of the Councils have, however, been achieved only in a few units. In a majority of the cases, the councils are not functioning satisfactorily. The main causes of joint management councils failure are.

1. For instance, it is known that in most cases workers representatives are more concerned with the enlargement of amenities & facilities. Also, the redressing of grievances, then the more significant problems such as increasing productivity, reducing absenteeism, affecting economies and suggesting methods for more efficient utilization of plant & equipment.
2. One Council had even adopted a resolution that no worker shall be discharged or dismissed without prior approval of the joint management council.
3. Employers, on their part, are not contributing fully to the success of the Joint Management Councils. They don’t take the Councils into confidence regarding amendments to standing orders. However, the introduction of new methods of production & manufacture involved the re-deployment of men & machinery. And, reduction in or cessation of operation despite an agreement to this effect.
4. Communication of sharing of information with the workers has not adequately developed. In fact, in Simpson & Co. The Joint Council came to a standstill because the management refused to finish specific details of the expenditure demanded by Workers’ representatives. It is the main reason of failure of Joint Management Councils.
5. In agreement with setting up joint management councils, management has concealed the principle of transferring to the joint Council. However, some administrative responsibility regarding welfare measures, safety measures, vocational training, apprenticeship schemes, preparation of Schedules of working hours & holidays & payment of rewards for suggestions received from the workers. In actual practice, however, there is no accurate transfer of administrative responsibilities in these matters.
6. In no case has the joint Council or its appropriate sub-committee left the choice to determine, within financial resources available. Also, the priorities regarding welfare measures to be provided or the allocations to be made in respect of these facilities.
7. Regarding safety measures, the Council’s role is more often purely advisory.

In brief, we can say the following are the causes of joint management council.

• The workers’ representatives were not satisfied with their role in councils.
• Management is not prepared to supply sufficient information to Councils.
• The trade union leaders feel that the Council would weaken their hold over workers.
• The absence of representative unions made it difficult for the Council to work smoothly.

Conclusion

The Joint Management Councils were in existence to promote cordial relations b/w management & labor and to build & understanding. Also, to increase productivity, secure, adequate welfare & other facilities to train workers and share responsibilities but they become a failure due to various reasons.