A process of involving those who are influenced by decisions, in
making decisions. Type of management in which employees at all levels are encouraged to contribute ideas towards identifying and setting organizational-goals, problem solving, and other decisions that may directly affect them. Also called consultative management. Why Participative Mgt.? Every one is result oriented Two heads are better than one Draw resources of mind not just body. ‘People are our most imp.asset’ Company productivity,its commitment to involvement of its employees Four processes influence participation. Information sharing Training Employee decision making Rewards Skills Required for Participative Management Interest and concern Recognize and enhance talents in others Communication particularly listening Conflict resolution Self-control Negotiation Teachability Flexibility Correction BENEFITS OF PARTICIPATIVE MANAGEMENT Increase Productivity (Effectiveness and efficiency) Better Decisions Employee Morale Improved job satisfaction Greater Commitment Faster Adaptation to Change Greater trust Better Communication Better Teamwork Advantages:- Both company and managers benefits Encourages better communication and greater employee performance Improves effectiveness and productivity Create positive work environment improves, quality,reduces absenteeism and lessens hostility LIMITATIONS OF PARTICIPATIVE MANAGEMENT Technology and organizations today are so complex Employee’s right- not to participate. Manipulate employees Trade unions Unwillingness of employers.