Overview of Employee Directors Method
- Under the Employee Directors method, one or two representatives of workers are nominated or elected to the Board of Directors.
- This is the full-fledged and highest form of workers’ participation in management.
- The basic idea behind the method is that the representation of workers at the top-level would usher in Industrial Democracy, congenial employee-employer relations, and safeguard the workers’ interests.
- The Government of India introduced this scheme in several public sector enterprises such as Hindustan Antibiotics, Hindustan Organic Chemicals Ltd, etc. However, the scheme of appointment of such a director from among the employees failed miserably and the scheme was subsequently dropped.
