Arguments in favour of workers participation: the importance of the scheme of participation can be seen from the following:

Mutual understanding: in capitalist countries workers and employers generally work towards conflicting objectives employers have a tendency of exploiting the labour and the labour have the tendency and working of the minimum possible level of their potential. Mutual understanding is completely lacking in these countries. Whenever this type of conflicting interests groups joins together the better solution would be participation. Participation scheme enables employees to know the management problems and managers become aware of the employee's problems and grievances. Worker's participation provides a useful platform for amicable problem solving approach for both labour and management.

Increase in production: increase production is the inevitable aftermath of the sound industrial relations which is the by product of workers participation in management. Without effective cooperation and coordination between labour and management productivity cannot be enhanced. Increased production result in increased monetary benefits in terms of incentives and bonus schemes to the employees and increased earnings to the shareholders. Thus participation results in increased production and profits.