Employee Directors

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.