Participative management is based on the concept of industrial democracy. It encourages the involvement of stakeholders at all levels of an organization. It helps in the analysis of problems, development of strategies and implementation of the solution.It helps in increasing the responsibility of employees, forming self-managed teams, quality circles, and provide survey feedback.
Participative Management is an open form of management where employees are actively involved in the decision-making process of the organization. It is based on the concept that when the worker invests his time, he should be given an opportunity to express his view and opinion. They know that the employees are the facilitators who deal directly with the customers and satisfy their wants and needs. This form of management has been adopted by many organizations to beat the competition in the market and to stay ahead of the competition. They welcome the innovative concepts, thoughts, and ideas from the employees and involve them in the decision-making process.
The concept of participative management in organization’s decision making is not new. However, the idea couldn’t gain that much popularity among organizations.The theory of participative management is as old as the institution of employees.The employers are still not the proportion of organization. (Management Study guide)
Here, the employees are invited to share in the decision-making process by participating in the activities like setting goals, determining work schedules, and making suggestions. Participative management itself do not ensure success and should not be seen as the tool to create magic within no time. Certain ground preparation is required before an organization can decide for the implementation of participative management. Participative management involves more than allowing employees to take part in making decisions. It also helps to create the ideas and suggestions of employees with consideration and respect. The direct employee ownership of a company is the most extensive form of participative management. (Business.com)
Need of the Participative Management
Participative management creates a sense to motivate employees to increase productivity in order to achieve their goals.
a) Clearly Defined Objectives
There must be clearly defined objectives in each party to decision-making called as the participants namely by the participative management. Operationally there should be no clash between the objectives of the organization. The objectives must be clear and achievable.
b) Clear Communication
Clear communication builds trust between the two parties. There should be clear communication between the management and the workers or the employees. With the help of communication, the workers also gain a sense of responsibility to increase their stake in the work and in the organization as a whole.
c) Psychological Satisfaction
Participative management is needed in order to give psychological satisfaction to the employees. They feel a kind of important when their views are taken into consideration.
d) Choosing the Representative
It is important for the workers to choose their representative from among themselves. This is important for two reasons. One is, the person is able to better understand the problems and report the same to the management.The other is the management needs to talk and listen from a person who works within the organization.
e) Training the Workers
Further training is required to ensure that every person at every level should know his/her contribution. Training is required to make it more effective.For example, the level of middle management is different compared to participation at lower or top level of participation.
Both parties workers and the management need a trust to develop a confidence between the two. Participation should not be perceived as intimidation to the position. If the workers think of affecting their status, they refuse to participate. Similarly, they will decline to participate, if the managers suspect that they will lose their authority.
g) Removes grievances of employees
Participation of employees is needed in order to remove doubts, misunderstandings, and grievances in the minds of employees. It helps to remove grievances in the company. So, it leads to the progress of the organization.
h) Increasing Workers Participation
Workers participation needs to be increased at each level in order to encourage them. The suggestions and recommendations of the workers must be treated with full dignity and respect. Nothing can be more motivating than seeing your recommendation being put to practice.
i) Legal Action
Some legislative action is required to the employees. Since participative management requires structural and cultural change,there is resistance to change to those who perceive it as a threat to their status and authority within the organization especially offered by the employees.
j) Raised industrial production
Participative management is needed to raise the industrial production. When employees are given importance and a chance to express they work with an enthusiasm and interest.
k) Creates Responsibility
If more employees are involved in the activities of the organization, they would feel responsible towards the organization. A responsible approach is created among the employees by the participative management.
l) Management Relation
Participative management is needed in order to establish management relation. The participation of workers in management can act as an effective means for preventing industrial disputes.
The Participative management is needed in order to have uniformity approach of employer and workers. Uniformity has importance to both the parties.
Participative management can be a solution for each and every type of organization. It is a great challenge in organizations with large employee size. The implementation needs to be carefully planned and gradually implemented.
(Management Study guide)
n.d. Reference for Business. Electronic. 14 06 2016. http://www.referenceforbusiness.com/management/Or-Pr/Participative-Management.html
Management Study guide. 2008. Electronic. 14 06 2016 .http://www.managementstudyguide.com/participative-management-preparation.htm
Management study guide. 2008. Electronic. 14 06 2016. http://www.managementstudyguide.com/participative-management.htm
- Participative Management refers to as an open form of management where employees are actively involved in organization’s decision-making process.
- Employees are invited to share in the decision-making process of the firm by participating in activities such as setting goals, determining work schedules, and making suggestions.
- It is important for the workers to choose their representative from among themselves and not any person from outside the labor union.
- Participation of employees is needed order to remove douts, misunderstandings and grievances in the minds of employees.
- Workers participation needs to be increased at each level in order to encourage them to contribute meaningfully.
- Participative management may be a solution for each and every type of organization.
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