INDUSTRIAL DEMOCRACY

Industrial democracy means that the management in industrial units is by the people, of the people and for the people. Here people include all those who are concerned with the industrial unit.

Industrial democracy connotes an equilibrium between the rights of the dominant industrial hierarchy and the rights of employees with a broad social objective.

Industrial democracy means the application of democratic principles in managing industrial units.

Here workers are treated as responsible partners of an 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 policy formulation.

FEATURES  of Industrial Democracy

(i) Workers are treated as partners in the organisation and are given an opportunity to participate in the management.

(ii) The various methods through which industrial democracy can be introduced are work committees, joint management councils, suggestion schemes etc.

(iii) Workers are generally allowed to participate indirectly i.e. through their representatives. This participation is restricted to certain aspects of management only. The participation of workers is sought only in those areas which are directly related to them.

(iv) The morale of the workers is boosted as they have an effective say in the working of the enterprise where they are working. They feel as if they have been elevated to a higher status.

Pre Requisites of Industrial Democracy:

The conditions necessary for effective implementation of industrial democracy are as follows:

1. In every organisation, there should be a strong trade union with effective leadership.

2. There should be willingness on the part of employers to treat workers as partners.

3. Industrial democracy cannot succeed unless all concerned-workers, employers, government and the public-fully realize its importance and its due place in the national life.

4. The management and the unions should have the strong and genuine desire to deal with the industrial problems peacefully and through democratic means.

Objectives of Industrial Democracy

(i) The create a sense of belongingness of workers to the organisation.

(ii) To improve a sense of commitment to the organisational objectives, plans and activities among employers.

(iii) To satisfy the psychological needs of the employees.

(iv) To respect the human dignity of the employees.

Significance of Industrial Democracy:

(i) There would be full cooperation of employees for the implementation of decisions as they participate in decision making.

(ii) Industrial harmony can be maintained as the employees feel the sense of belongingness.

(iii) Productivity can be increased.