The concept of industrial democracy is a complete departure from the traditional concept of autocratic management or one-man governance.

“ It means the application of democratic principal in managing industrial units.”

In industrial democracy, worker are treated as responsible partners of the enterprise and are allowed to participate in the decision -making process through different methods.

Workers are given the right of self-expression and an opportunity to communicate their views on framing the polices of the company.

H.A. Clegg, “Just as political democracy is based on the existence of an opposition , industrial democracy is contingent upon the existence of an opposition within the industry to prevailing power of management ownership”

First – Trade unions must be independent both of the State and the management

Second – Only the unions can represent the industrial interest of the workers

Third – Ownership of industry is irrelevant to good industrial relations

(i) The workers are treated as partners in the productive process and are given an opportunity to participate in the management

( ii ) Workers committees, joint management councils, and suggestion schemes are some methods through which industrial democracy can be introduced at the unit level.

( iii) Workers’ participation is generally indirect, i.e., through representatives and also restricted to certain aspects of management particularly those which are related to workers.

( iv ) The workers enjoy higher status as they have an effective say in the working of the enterprise where they are working.

Existence of trade union strong enough to oppose management.

A management which accepts trade unionism as a “loyal opposition” and is willing to comprise and to some agreement which may be in interests of industrial harmony and unity.

1. Industrial democracy brings effective communication between workers and management, and thereby joint decisions acceptable to both parties are possible

2. Industrial democracy leads to cordial labour –management relations industrial peace.

3. Industrial democracy gives higher status to worker and makes them more responsible in their outlook and behaviour.

4. Workers feel committed to the decision taken by them jointly with the management.

5. Industrial democracy gives training in democratic norms and traditions to workers through participation in the affairs of their company. This develops the sprit of tolerance and co-operation which is useful in a democratic society. This crates true democratic spirit in the minds of workers and make political strong and stable.

To improve a sense of commitment to the organizationalobjectives, plans and activities among employees.

To satisfy psychological needs of the employees.

To respect the human dignity of employees

1. There should be strong trade union with constructive leadership in every enterprise.

2. The employers should have the willingness to treat workers as equal partners in industry.

3. All the parties to industrial relations, namely, employers, employees and government should have full faith in industrial democracy.

4. The workers and management should have the genuine desire to del with the industrial problems peacefully and through democratic means.

Industry refers to economic activities, which are connected with conversion of resources into useful goods. The term industry is used for activities in which mechanical appliances and technical skills are involved. These include activities relating to producing or processing of goods as well as breeding and raising of animals. The term industry is also used to mean groups of firms producing similar or related goods. For example, cotton textile industry refers to all manufacturing units producing textile goods from cotton .

Government by the people; a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system.

Control of an organization or group by the majority of its members.

“People shouldn't be afraid of their government. Governments should be afraid of their people.” --Alan Moore

DEMOCRACY

Industrial Democracy is an economic arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. 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.

Less industrial disputes resulting from better communication between management and staff.Improved decision making processes resulting in higher quality decisions. Increased creativity, enthusiasm and commitment to Corporate objectives. Lowered stress and increased wellbeing.

Better use of time and resources.

Improved productivity including service delivery.

Increased job satisfaction resulting in reduced absenteeism.

Improved personal fulfillment and self-esteem.