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Tally - Accounting Software

INDUSTRIAL RELATIONS


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Disadvantages of Profit Sharing Scheme

There are some options of Disadvantages of Profit Sharing Scheme

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Advantages of the Profit-sharing Scheme

There are some Advantages of the Profit-sharing Scheme

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Basis of sharing

There are some options of basis of sharing

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Profit Sharing

Profit sharing scheme has gained much popularity among the groups of labour remuneration. The traditional concept of profit considers that the profit is an exclusive right of capitalist as their remuneration. Now the concept has changed.

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Works Committees of forms

Establishment of works committees in establishments employing 100 or more workers were made compulsory by the Industrial Disputes Act 1947 to introduce the system of labour-management participation through legislation.

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Joint Management Councils of forms

Under this system, joint consultative committees are set up comprising the representatives of the workers and the employers to discuss various matters concerning the working conditions of workers in industry.

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Employees' Representation on the Board of Directors of forms

This method ensures a full fledged participation of workers in management . Under this method one or two workers' representatives are nominated or elected on the Board of directors- the apex body in decision making. They work as directors like other directors and have the same authority.

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Suggestion Scheme of forms

One of the way of encouraging workes' interest in concern is the introduction of “suggestion scheme.

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Co-Partnership of forms

Under this method workers are involved in the shareholding of the company for which they are working.

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Forms of Workers' Participation in Management

Several methods have been suggested and tired for ensuring workers' participation in management. More important among them are mentioned belows:-

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Psychological object

The main purpose of this system to bring about a change in the attitude of the workers.

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Social object

The worker being a human being is a social being also. The purpose of this system is to get the workers a respectable status in the society.

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Economic object

The foremost object of workers' participation is to increase the production and the productivity of the worker by improving the industrial and human relations in industry.

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Objects of Workers' Participation in Management

There are three objects of the scheme of workers' participation in management

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Workers' participation in management

Worker's participation in management has been given several meanings and it has varied facts in practice. A scheme of workers' participation is devised to ensure effective consolation with workers on points which ultimately concern them.

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External Machinery

It includes

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External Machinery

It includes

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Internal Machinery

It includes the following: -

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Machinery for Settlement of disputes

If dispute could not be prevented on voluntary basis, and do arise. The industrial Dispute Act 1947 amended in 1956 provides several provisions for setting the disputes.

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Machinery for Prevention of Industrial disputes

Prevention is better than cure is the principle for he establishment of machinery for prevention of industrial disputes before they arise.

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