Participative Management

Vol 26 Issue 21

Participative Management means employees involves actively contributing to organizational decision-making process. It also involves management treating the ideas and suggestions of employees with consideration and respect. The most extensive form of participative management is direct employee ownership of a company. These given processes below create employee involvement as they are pushed down to the lowest levels in an organization. The further than down these processes move, the higher the level of involvement by employees. Some of the elements in participative management are Information sharing, which is concerned with keeping employees informed about the economic status of the company. Training, which involves raising the skill levels of employees and offering development opportunities that allow them to apply new skills to make effective decisions regarding the organization. Employee decision making, which can take many forms, from determining work schedules to deciding on budgets or processes. Rewards, which should be tied to suggestions and ideas as well as performance.

Some of the advantages of participative management can be drawn into consideration. Firstly, the increase in productivity: An increase in decision making means that there is a string feeling of association now. The employee now takes the responsibility and charge. Working hours may get stretched on their own without any compulsion or force from management. All this leads to increase the Productivity.

Secondly comes the Job Satisfaction. Most of the employees are satisfied with their jobs and the level of satisfaction is very high. This is especially when people see their suggestions and recommendations being implemented or put to practice. Psychologically, this tells the individual employee that, he too has a say in decision making and that ‘he too is an integral component of the organization and not a mere worker.” Finally, increased productivity and job satisfaction cannot exist unless there is high level of motivation in the employee. The vice versa also holds true. Decentralizes decision making means that everyone has a say, and everyone is important. Therefore, Motivation is another advantage of participative management.

Highly motivated employees frequently seek to work beyond the bounds of their specific work roles and functions to not only improve themselves, but also to achieve the objectives of the organization along with their full corporation and participation in the management. Successful participation requires managers to approach employee involvement with an open mind. They must be open to new ideas and alternatives for participative management to work.

Managers should identify the points where they require employee contribution towards a decision either by employee feedback survey, peer employee discussion sessions or collective discussions with managers. This approach will aid the managers to identify the best employee ideas in their management decision making process. Many companies have experienced the positive effects of participative management. Employees are more committed and experience more job satisfaction when they are allowed to participate in decision making. Organizations have reported that productivity improved significantly when managers used a participative style. Participative management is not an easy management style to implement. It presents various challenges. Therefore the managers will be more successful if they remember that it will take time and careful planning before they see the results.