Participation through Employee Directors

Participation through Employee Directors:

Here, two or three representatives of workers are taken on the Board of Directors of the company. The employee director are elected by workers they express the views of workers in the meetings of the Board. Here, employee directors act as connecting link between workers and top level management. Such participation ensures cordial industrial relations. The representatives of workers can put the views of workers before the directors and can also safeguard the interests of workers. As a result, the personnel policies will be fair and favourable to workers.

This method of participative management has many limitation Representation on the Board does not substantially enhance the participation of workers in the management of the company. In addition the employee direct may not be able to play a constructive role due to limited knowledge and experience. The employee Director may enjoy the status on par with other directors but will feel inferior to others due to his shortcomings. His contribution may not be satisfactory for the workers and also for the management.

Finally, workers representatives on the Board are in minority. They may not be able to take care taken the interests of workers as decisions are taken on the basis of majority vote.