Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial democracy they also have the final decisive power (they decide about organizational design and hierarchy as well).
In company law, the term generally used is co-determination, following the German word Mitbestimmung. In Germany half of the supervisory board of directors (which elects management) is elected by the shareholders, and the other half by the workers.
Although industrial democracy generally refers to the organization model in which workplaces are run directly by the people who work in them in place of private or state ownership of the means of production, there are also representative forms of industrial democracy. Representative industrial democracy includes decision making structures such as the formation of committees and consultative bodies to facilitate communication between management, unions, and staff.
Read more about Industrial Democracy: Rationale, Co-determination, History, Representative Industrial Democracy
Famous quotes containing the words industrial and/or democracy:
“Nearly all the Escapists in the long past have managed their own budget and their social relations so unsuccessfully that I wouldn’t want them for my landlords, or my bankers, or my neighbors. They were valuable, like powerful stimulants, only when they were left out of the social and industrial routine.”
—Willa Cather (1876–1947)
“In Italy, for thirty years, under the Borgias, they had warfare, terror, murder and bloodshed. But they produced Michelangelo, Leonardo da Vinci, and the Renaissance. In Switzerland, they had brotherly love, and they had five hundred years of democracy and peace, and what did that produce? The cuckoo clock.”
—Graham Greene (1904–1991)