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 democracy, industrial and/or democracy:
“... men and women are not yet free.... The slavery of greed endures. Little child workers, the hope of the future, are sacrificed to industry. Young men are sent out by the billion to die for profits.... We must destroy industrial slavery and build industrial democracy.... The people everywhere must come into possession of the earth [second, third, and fourth ellipses in source].”
—Sara Bard Field (1882–1974)
“We agree fully that the mother and unborn child demand special consideration. But so does the soldier and the man maimed in industry. Industrial conditions that are suitable for a stalwart, young, unmarried woman are certainly not equally suitable to the pregnant woman or the mother of young children. Yet “welfare” laws apply to all women alike. Such blanket legislation is as absurd as fixing industrial conditions for men on a basis of their all being wounded soldiers would be.”
—National Woman’s Party, quoted in Everyone Was Brave. As, ch. 8, by William L. O’Neill (1969)
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—Henry Brooks Adams (1838–1918)