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levels of an organization in the analysis of problems, development of strategies, and implementation of solutions. 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. Other forms of participative management include increasing the responsibility of employees (job enrichment); forming self-managed teams, quality circles, or quality-of-work-life committees; and soliciting survey feedback. Participative management, however, involves more than allowing employees to take part in making decisions. 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. Four processes influence participation. These processes create employee involvement as they are pushed down to the lowest levels in an organization. The farther down these processes move, the higher the level of involvement by employees. The four processes include: 1. Information sharing, which is concerned with keeping employees informed about the economic status of the company. 2. 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 as a whole. 3. Employee decision making, which can take many forms, from determining work schedules to deciding on budgets or processes. 4. Rewards, which should be tied to suggestions and ideas as well as performance.
BENEFITS OF PARTICIPATIVE MANAGEMENT
A participative management style offers various benefits at all levels of the organization. By creating a sense of ownership in the company, participative management instills a sense of pride and motivates employees to increase productivity in order to achieve their goals. Employees who participate in the decisions of the company feel like they are a part of a team with a common goal, and find their sense of self-esteem and creative fulfillment heightened. Managers who use a participative style find that employees are more receptive to change than in situations in which they have no voice. Changes are implemented more effectively when employees have input and make contributions to decisions. Participation keeps employees informed of upcoming events so they will be aware of potential changes. The organization can then place itself in a proactive mode instead of a reactive one, as managers are able to quickly identify areas of concern and turn to employees for solutions. Participation helps employees gain a wider view of the organization. Through training, development opportunities, and information sharing, employees can acquire the conceptual skills needed to become effective managers or top executives. It also increases the commitment of employees to the organization and the decisions they make.
the chances are increased that a valid and unique idea will be suggested. Encouragement should be offered in order to accustom employees to the participative approach. Managers should also give employees time to . The employees must be able to trust their managers and feel they are respected. In order for participation to be effective. Before expecting employees to make valuable contributions. Many times employees do not have the skills or information necessary to make good suggestions or decisions. Employees must also be willing to participate and share their ideas. In order for participative management to work. how those ideas are received is critical to the success of participative management. managers must be willing to relinquish some control to their workers. are given the opportunity to participate. Participative management does not work with employees who are passive or simply do not care. instead of just managers or executives. managers must be genuine and honest in implementing the program. several issues must be resolved and several requirements must be met. When all employees. They must be open to new ideas and alternatives in order for participative management to work. as does any successful attempt at a total cultural change from a democratic or autocratic style of management to a participative style. the organization benefits from the synergy that comes from a wider choice of options. It is important to remember that although the manager may not agree with every idea or suggestion an employee makes. Changing employees' ideas about management takes time. REQUIREMENTS OF PARTICIPATIVE MANAGEMENT A common misconception by managers is that participative management involves simply asking employees to participate or make suggestions. Effective programs involve more than just a suggestion box. managers should provide them with the criteria that their input must meet. Many employees will need to consistently see proof that their ideas will be accepted or at least seriously considered. By allowing a diverse group of employees to have input into decisions. By guiding employees toward areas in which they are knowledgeable. First. not believing they will last. Often managers do not realize that employees' respect for them will increase instead of decrease when they implement a participative management style. phased approach. or are too expensive. a manager can help to ensure their success. One way to help employees engage in the decision-making process is by knowing their individual strengths and capitalizing on them. are not feasible.Creativity and innovation are two important benefits of participative management. Successful participation requires managers to approach employee involvement with an open mind. Long-term employees may resist changes. In this case it is important to provide them with information or training so they can make informed choices. This will aid in discarding ideas or suggestions that cannot be implemented. The success of participative management depends on careful planning and a slow. managers must feel secure in their position in order for participation to be successful.
Some suggestions for overcoming this potential problem are to set aside a particular time each week for workers to meet with management in order to share their ideas. When an idea or decision is not acceptable.think about ideas or alternative decisions. . or to allow them to work on their ideas during less busy times of the day or week. Employees often do not do their most creative thinking on the spot. managers must be cognizant of the potential for employees to spend more time formulating suggestions and less time completing their work. Employees need to know that they have made a contribution. make a decision. Offering employees a choice in the final decision is important because it increases their commitment. Another idea that works for some managers is to allow employees to set up individual appointments to discuss ideas or suggestions. motivation. as a manager. For example. If management repeatedly strikes down employee ideas without implementing them. Another reason that participative management fails is that managers do not realize it is not the same as delegating or simply shifting responsibility. CONCERNS Participative management is not a magic cure for all that ails an organization. Another important element for implementing a successful participative management style is the visible integration of employees' suggestions into the final decision or implementation. thus halting participation. Employees often respect a manager that uses his or her authority and makes decisions when it is necessary. Sometimes even just presenting several alternatives and allowing employees to choose from them is as effective as if they thought of the alternatives themselves. The key is to build employee confidence so their ideas and decisions become more creative and sound. Managers should carefully weigh the pros and the cons before implementing this style of management. and then accept the responsibility for the choices made. When managers look upon their own jobs as a privilege instead of as a responsibility. Managers should remember that participative management is not always the appropriate way to handle a given situation. management might ask for an alternative rather than rejecting the employee input. Upper-level management will not support a participative management program if they believe employees are not meeting their daily or weekly goals. While it is important that management allows employees to participate in decision making and encourages involvement in the organization's direction. If the employees' first choice is not feasible. Managers must realize that changes will not take effect overnight and will require consistency and patience before employees will begin to see that management is serious about employee involvement. they will fail at making participative management work. it is important to be in charge. They will be less willing to turn over some of the decisionmaking responsibility to subordinates. Participative management is probably the most difficult style of management to practice. employees will begin to distrust management. There are times when. participative management is probably not appropriate when disciplinary action is needed. managers should provide an explanation. and job satisfaction. It is challenging not only for managers but for employees as well.
functions and processes. Let’s read further to understand how these three groups of managerial decision-making can affect any industrial establishment: Social Decision-Making: It refers to employee involvement in decision making regarding hours of work. Scope of Participative Management The scope of participative style of management certainly depends on the organization. thoughts. welfare measures. . It presents various challenges and does not succeed overnight. if we talk about the scope of workers’ participation in social. Starting with small projects that encourage and reward participation is one way to get employees to believe that management is sincere and trustworthy.Participation alone has no value. Critics argue that unions are often more effective than participative management in responding to employee needs because union efforts can cut through bureaucratic organizations more quickly. Few of the world’s biggest organizations like Toyota. Though associating employees at every stage of decision-making is not possible still regular exchange of information. The scope of workers’ involvement in managerial decision-making may extend to social. economic and personnel decision-making. Employees are more committed and experience more job satisfaction when they are allowed to participate in decision making. Some managers believe that inviting employees to join in meetings and form committees will create a successful participative management program. economic and personnel decision making depending upon the requirements of the organization. these measures are only successful when employees' ideas are accepted by management and implemented. British Airways. employee welfare. which complicate effective communication and make it difficult to register the opinions and suggestions of a diverse group of employees and managers. Should they be equal partners and make joint decisions or should workers be given opportunities through their seniors to come up with the ideas. Many companies have experienced the positive effects of participative management. Organizations have reported that productivity improved significantly when managers used a participative style. decisions and negotiations between employer and the employees definitely is a boon to the organization. Due to hidden agendas and peer pressure. Managers also play a part in politics when they implement participative management programs to impress their own bosses but have no intention of seeing them through. employees may keep their opinions to themselves and refuse to tell a manager if they feel an idea will not work. British Gas and Nokia Cellular have achieved considerable profits and value creation by implementing the most amazing ideas of their employees. The larger the organization. Satyam. its nature. rules and regulations at workplace. it may have a direct impact on some of the most crucial activities of the organization. HSBC. It is up to the management to decide which style it prefers and till what extent it requires involvement of employees. Their success witnesses the importance of workers’ participation in the process of decision making. However. Participative management programs can be threatened by office politics. Large organizations have more layers and levels. workers’ safety. However. ideas. the more difficult it becomes to institute a participative management style. Participative management is not an easy management style to implement. But there is a difference of opinion about the extent to which employees can participate in managerial decision-making process. Managers will be more successful if they remember that it will take time and careful planning before they will see results. The first school of thoughts favors the actual participation of workers while the second school of thoughts suggests the consultation of workers in managerial decision making. it is only an effective tool if it is used to solve problems and meet goals. consultations.
demotions and transfers. It gives employees a sense of pride to have a say in organizational decision making process. There are several ways through which employees can participate in the whole process. The main idea behind this style o management is not only using physical capital but also making optimum utilization of intellectual and emotional human capital. it gives them a psychological satisfaction. Employee participation in decision-making process although is beneficial. To Increase Industrial Productivity: In today’s competitive world. promotions. Motivated employees are the biggest assets of an organization and participative management is an effective strategy to retain the best talents of the industry. Inviting ideas from employees on various issues like how to cut down the operating cost can work wonders. Some of them are financial participation. job security and high pay packages are not enough to increase industrial productivity. Rather it makes the best use of human intellectual and emotional capital. participation through work councils and committees and participation through suggestion schemes. grievance handling. flexibility. Personnel Decision-Making: The employees’ participation in personnel decision-making refers to their involvement in various management processes including recruitment and selection. employees have a say in decisions in these areas. It. participation through ownership. However. low productivity and job dissatisfaction. industrial democracy and employee say in decision making are important to increase annual turnover of any organization. work distribution. To Meet the Psychological Needs of Employees: When employees have a say in decision making process. delegation of authority. To Retain the Best Talent: Participatory management is one of the most effective strategies to retain the best talent in the industry. employee attrition. They may take an advantage of their liberty and sometimes. In this category. in turn. there may be some limits on it to ensure that they do not take advantage of their liberty and right of participation. settlements. Here the concept of bounded or restricted participation can work well. shutdown. However. create a proper channel of communication and find practical solutions to design better organizational processes. they stick to the organization and become management’s partners in meeting specific goals and achieving success. participation through collective bargaining. voluntary retirement schemes and so on. Let us read further to explore the main objectives to introduce participative style of management in organizations: To Make Best Use of Human Capital: Participative management does not restrict organizations to exploit only physical capital of employees. it may not be appropriate to empower employees at every level but use of joint decision making at certain levels in organization can work wonders. Participation of employees in these processes can safeguard their interests and motivate them to work hard for the betterment of self as well as the organization. It gives employees an opportunity to contribute their ideas and suggestions to improve business processes and create a better working environment. The . can dominate the management. Objectives of Participative Management inShare Participative management acts as a force to motivate employees to meet specific organizational goals. Economic/Financial Decision-Making: It includes involvement of employees on various financial or economic aspects such as the methods of manufacturing. Once they are valued by their seniors. increases the job satisfaction among employees and improves the quality of their work life. cost cutting. participation at the board level. To Establish Harmonious Industrial Relationship: Participatory from of management is an unbeatable tact to establish and maintain cordial relationships with employees and workers union. mergers and acquisition and lay-offs.health and sanitation. Anyone of these ways or processes can be adopted by the management to ensure participation from workers. This is th process of involving people in decision making process to ensure that everyone’s psychological needs are met. Leadership. Participatory Management or co-determination is seen as the quick cure for poor morale. It is a simple force that drives them to improve their performance. motivation. automation.
respecting the dignity of individuals and co-determining the company policies are some of the features of participative management that provide psychological satisfaction to employees. For some companies.success of an organization depends on its human resources. In this form of management. achieve targeted goals in minimum possible time and stay ahead of competition. It is equally rewarding for the management as it ensures tremendous improvement in work culture within the organization as well as increase in its productivity. Features of Participative Management inShare Employees have always been bossed around their managers and told what they are supposed to do. Management motivates them to come up with ideas and suggestions that can make organizational processes far more efficient. They have such a weird perception towards it that they can’t even picture it working. Everyone contributes their best and tries to strengthen the organization by contributing their best to improve business processes. It is important for everyone to have psychological satisfaction as far as our employment is concerned. participative management is still a foreign subject. Gone are the days when employees were bossed around by their managers. Proper Channel of Communication: Participative form of management encourages two-way communication. It gives employees a higher degree of enjoyment at work place that drives them to work harder. Employee participation in decision making ensures proper flow of communication in the organization. Some companies still stick to conventional ways of management while others are encouraging employees to contribute to the suggestion box. Recognition of Human Dignity: In this form of management. Let us know about its features and see how participative management can work wonders: Ethical Dimensions: Participatory management has ethical dimensions and based on morals. Now they are to be treated like coworkers. But the organizations that have successfully adopted this particular style of management they look upon it as a means to achieve their targets and create a sound working environment. The main idea behind adopting participatory form of management is to work together. It is not only management that decides what employees need to do but it also encourages employees to participate in decision making and give ideas and suggestions to make organizational processes better and more efficient. They are encouraged to come up with their views. It is based on employee empowerment. They are allowed to share their problems. Empowers Employees: Participative style of management gives employees a chance to participate in management processes. Employees are no more the servants of managers but are the most important assets of an organization. views. all employees are treated equally irrespective of their designations when it comes to giving ideas and suggestions for organizational decision making process. Gradually. The management in such companie doesn’t like employees questioning its authority. The concept is not widespread and is still restricted to a few organizations. Participative management is beneficial to organization as well as employees. . Employee empowerment acts as a strong force to bind the employees and motivate to give them their best to the organization. principles and values. every one is treated equally when it comes to organizational decision making. This provides a higher status to employees as they also have a say in decision making. To Maintain a Proper Flow of Communication: Two-way communication plays an important role in the success of any organization. times are changing and employees are encouraged to participate in organization’s decision making process. Commitment from the organization. ideas and feedback with their managers. They never had the authority to decide things in the company. responsibility sharing and delegation of authority. The concept is gaining world-wide recognition and popularity day by day. Psychological Satisfaction to Employees: Most of our lives are spent at workplace.
managers also need to set certain benchmarks for making inputs to various groups so that discussions are held at levels that are consequential and the solutions are feasible economically.Participative Management is a universally recognized concept but still most organizations hesitate to adopt it. Proof of implementations serves as the biggest marketing vehicle that encourages the employees to become more forthcoming. It also encourages them to come forth in future and also keeps them continuously engaged in thinking about the welfare of their organization. discussed seriously and implemented finally if found beneficial to the organization. This operates at three levels. Through this style of management. In certain organizations despite obvious proofs. It also brings with it a certain amount of resistance from the employee specially so from the older or the long term employees. This encourages participation. This is precisely why participative management needs to be implemented in phases. are satisfied. therefore its implementation essentially requires a change in the employee’s idea of the latter. this way the employees are able to see proof that their ideas and suggestions hold weight. Pre-requisites of Participative Management inShare Participative management can best be described as a style of decision making that ensures that involvement of stakeholders at all levels. This may sound problematic in large organizations but how the suggestion is being received decides to a large extent whether or not the style of decision making can be successful. Since participative management is a style of decision making. Ideas that cannot be implemented need to be explained to the employees. One more prerequisite for successful participative management is attitude of the top and middle management or those who seek employee interventions in decision making. employer and employees. both the parties. They must be open to new ideas and innovations. the employees decide not to participate or make contribution. This change also means that there is a cultural change required in the organization vis-à-vis a change from a certain other style of decision making to participative style. It brings management and employees closer and thus. Since decision making is based on inputs of one and all. strategy formulation and final implementation of the solution. This also communicates to them that they are important and also motivates them more. timed and well thought upon. Ground Preparation for Participative Management inShare . The onus here lies on the managers in putting in sincere efforts to convince them of the usefulness of their role in the decision making. This can be overcome by imparting the right kind of training and by the manager himself by ascertaining the individual strengths of his team members and asking for relevant contributions based upon the same. In large organizations in order to ascertain the relevance of suggestions. The resistance is a reflection of the disbelief of the employees that their participation will not be respected and implemented. Participative management first of all requires a willingness from the managers to give up some charge to the workers and they must in turn be in a position such that the successful participation of all is ensured. should be adopted open heartedly. The employees need proof that their ideas will be considered. It cannot be successful in any organization unless is carefully planned. therefore its success also depends on the degree of participation of employees. They must approach employee involvement with a receptive and open mindset. This is important in order to avoid mistrust and promote participation. There are certain prerequisites to be met before participative management can be put to work. In yet another organizations the employees are not skilled enough to make meaningful contributions to the final decision making process. Problem analysis.
Further training is required to ensure that every person at every level knows his what contribution he/she has to make. 7. it will take time to show results. Similarly. Choosing the Representative: It is important for the workers to choose their representative from among themselves and not any person from outside the labor union. the person is able to better understand the problems of his colleagues and report the same to the management. 2. Confidence: Both parties workers and the management need a trust to develop between the two. Workers also gain a sense of responsibility increasing their stake in their work and in the organization as a whole. participation at the level of middle management is different compared to participation at lower or top level. Participation and Performance . Therefore. Legal Action: Since participative management requires structural and cultural change which takes time. Training the Workers: Training and awareness regarding the usefulness of participative management is required to make it more effective. employees should devote a certain time for participation and the rest upon their own specific area of work. This is important for two reasons. the management is keener to talk and listen from a person who works within the organization. An employee is better able to relate himself/herself with his or her work and this improves performance and efficiency at work. Clearly Defined Objectives: Each party to decision making called as the participants namely the management and the workers must have clearly defined objectives. Second. John Newstrom and Keith Davis worked extensively upon the subject. It has to be carefully planned.Participative management in itself does not ensure success and should not be seen as tool to create magic within no time. if managers suspect that they will lose their authority. Ensuring ROI: Participation should not be at the cost of the values of the organization. For example. Participative management may be a solution for each and every type of organization. According to them. If allowed to take shape a natural speed. some legislative action is required against the erring employees. The following things need to be taken care of: 1. Participation should not be perceived as intimidation to the position of any. They identified three variables that lead to increased performance. their suggestions and recommendations need to be treated with dignity and respect. It is a big challenge in big organizations with big employee size. 5. they refuse to participate. employees. Clear Communication: There should be clear and timely communication between the management and the workers or the 3. There is certain ground preparation required before an organization can decide for implementation of the management style. There is resistance to change offered by the employees especially those who perceive it as a threat to their status and authority within the organization.Importance of Participation inShare The greatest and widely accepted benefit of participation is the increased work ownership of employee. Increasing Workers Participation: Workers participation needs to be increased at each level in order to encourage them to contribute meaningfully. 6. the three variables that collectively enhance performance are: . This helps in building trust between the two parties. First. Further. Operationally there should be no clash between the objectives of the two. These variables are a part of participative management. The implementation needs to be carefully planned and implemented gradually. 8. they will decline to participate. Nothing can be more motivating than seeing your recommendation being put to practice. 4. If workers think that their status will be adversely affected.
Enhance Job Related Self Efficacy: Increase in responsibilities also demands increased efficiency at work. Benefits of Participative Management inShare Participative management as a decision making style is not welcome by one and all! Labor or trade unions. It calls for increased use of talent. Job enrichment on the other hand means that the job becomes more rewarding . This trickles down to the bottom or the lower level and this is how participation happens across various levels. There may be a certain group of employees who participate aggressively and in the process their own work gets affected. participation should result in either job enrichment or job enlargement. motivate and delegate with equal efficacy assumes importance. They argue that it is in fact disadvantageous to welfare of the workers because the participative processes give deep insights to the management.monetarily and otherwise. Then leadership becomes a crucial aspect. Perception of Empowerment: Employees often misunderstand the idea of participation. One limitation of participative management is that the results or decision making doesn’t improve overnight. It is in wake of this that the concept of talent management is fast evolving. those who are contiguous to the products being made. According to him participative management allows for innovation and knowledge sharing between the managers and the workers. Nonetheless we may enumerate thebenefits of participative management as follows: . Since training induces behavioral changes there is a need for reinforcing the new behaviors. Removing conditions of powerlessness Enhance job related self efficacy Perception of empowerment Removing conditions of Powerlessness: This implies empowering the employees to take decisions on their own. which in turn puts the latter in a better bargaining position while dealing with unions. a hike is required. Support functions become important because the individual now himself delegates his own work. These perceptions need to be taken care of otherwise they may be well the undoing of all the good work. Empowerment means more competence and value addition to work. for example do not approve of this. It is this change in attitude and behavior that brings in increased efficiency. They being the closest can give better feedback for quality control. The choice of a leader who can inspire. Finally. devise efficient manufacturing processes and strategize for the same. Markowitz and Lawler have also worked independently in the field. This requires a wholesome change in the entire organizational structure and culture. The above mentioned three variables have been effectively used in organizations implementing participative management. Apart from the above mentioned workers.adding task elements horizontally. This is after Kanter made useful contributions in the subject from 1983-1989. be enterprising and take more risks. Laying down benchmarks for a certain set of responsibilities by the use of role models (those who have already accomplished tasks in similar capacities under similar workload) also benefits. They can act as a catalyst in speeding up the results. Job enlargement means expanding the job responsibilities . This is achieved by providing training helping an employee achieve job mastery. Each employee also requires support from those above him and people working his supervision. Denison in the year 1990 elaborated on a large number of benefits of participative management. The reward system needs a revamp. Psychologically empowerment connotes increased responsibilities in the mind of an employee. It means that individual accepts the responsibilities with humility and fulfills them with grace and efficacy.
Participative management thus results in overall increase of the ownership of work of an employee. But like any other style of decision making there are certain limitations. Union . Manipulation: Managers may sometimes use participation to manipulate employees. Some labor unions for example question the usefulness of participation reasoning that participation offers the management deep insights into the workers and they may then use it against the latter. Timeliness: There is improved communication between the managers and the workers and between workers across different units. helping improve the quality of product and curtailing the cost of manufacture. Apart from this as mentioned above there is also knowledge sharing amongst the workers and the managers. for example.Innovation and increased efficiency: The problem solving process and openness to new ideas can result in innovation. Hiring Flexibility: Hiring flexibility is increased as a result of cross training. . One of the major benefits of this is that there is a lesser need of supervision and support staff. Increased coordination among team members also offers a comfort zone for the newly hired. Then there are limitations at the level at which you work. representatives of the labor unions may also exploit the workers in the name of participation. Certain people do not believe in the usefulness of participation and therefore opt out of the same. can be a major challenge! Limitations of Participative Management inShare Participative management is undoubtedly one of the better approaches to management. improved morale and job satisfaction. There are instances when a certain department or group participates aggressively and a corresponding group acts equally opposite. Product quality: A say in decision making means that workers can immediately pin point and suggest remedial measures for improving the efficiency of the process they are apart of. Consequently there is decreased absenteeism and less employee turnover. This has dual implications. Employee’s right of not participating: An employee has the right to not participate. Better grievance redressal: Increased communication paves way for reduced number of grievances and quick and effective resolution of dispute (often on the spot). policy matters remain outside their reach. This means that quality control in product or service is exercised for the lowest level. Similarly. This increases efficiency and productivity. This also works in attracting more people towards the organization and the job. A loophole or flaw is reported in time. Workers. the implementation of the same. better productivity. specially when there is a bureaucratic style of decision making in place. This may be both conscious and subconscious. This means that those who are part of a certain process at the ground level give inputs for improved efficiency of the same. But the fact the participative management requires an overall change in the organizational culture. This empowerment can lead to increased efficiency.management relationship is also benefited and strengthened. Less supervision requirements: There is greater focus on management of self with due emphasis of widening one’s skill set. Employee satisfaction and Motivation: Empowering the employees increases their ownership or stake in their work. These limitations arise either externally or internally vis-à-vis the implementation. Workers cannot extend beyond a certain limit in participation. The following are certain limitations of participative management: Complexity of Technology and Organizations: Organizations and Technology are so complicated these days that there are specialized workers required for each job. can participate in matters pertaining to operations.
that is. they acquire full control of the . participation of employees or workers to a limited extent. Inducing them to buy equity shares.Workers Psychology: An existent psyche amongst the employees. Though the extent to which employees should participate in organizational decision making is still a matter of debate. Add to it. the Idea Junction. Satyam is known to have introduced an amazing country-wide suggestion scheme. Trade Unions: Trade unions are integral to the success of participative management. the approach of representatives or individuals is also not very favorable. There are limitations but they arise because there either one or the other group is left out or there is serious communication gap that needs to be taken care of. Methods/Ways of Participation of Employees in Decision-Making inShare Participation of workers in decision-making process has resulted in successful value creation in many organizations. Through elected boards. that they are the workers and their primary purpose is to serve their masters (management) prevents them from participating. Workers join trade unions for personal rather than organizational reasons. dismissal and other problems whereby union interventions can rescue the worker. Participation through Ownership: The other way of ensuring workers’ participation in organizational decision making is making them shareholders of the company. Participation through Complete Control: This is called the system of self management where workers union acts as management. safety measures. the motive of participation is diluted. General Bias: Resistance to change inside the organization as mentioned earlier is the biggest hurdle to participative management. Participation through Suggestion Schemes: Encouraging your employees to come up with unique ideas can work wonders especially on matters such as cost cutting. Some say that workers’ union should participate with management as equal partners while some believe in restricted or bounded participation. Workers similarly show disinterest in the participation presuming everything to be well in order. Participation through Collective Bargaining: This refers to the participation of workers through collective agreements and by deciding and following certain rules and regulations. reward system. It receives over 5.000 ideas per year from its employees and company accepts almost one-fifth of them. there are a number of ways through which employees can participate in decision-making process of any organization. Developing a full-fledged procedure can add value to the organizational functions and create a healthy environment and work culture. Membership is regarded as a kind of protection against mishaps like accidents. This is considered as an ideal way to ensure employee participation in managerial processes. no single member or employee group can be left out. Most of the trade unions engage in politics and are little bothered about participation. giving financial assistance to enable them to buy equity shares are some of the ways to keep them involved in decision-making. they may be equally detrimental to the success of the same. The representative can put all the problems and issues of the employees in front of management and guide the board members to invest in employee benefit schemes. However. It should be well controlled otherwise each party tries to take an advantage of the other. etc. Managers decline to share power or to delegate apprehending that they may lose authority by doing so. Naturally. It involves each and every member of the organization. advancing loans. For deriving benefits and success out of the same. This can play an important role in protecting the interests of employees. For instance. Participative management cannot work in isolation. Further there is bias from the top management who step back on their promises when they fail to see participation deliver results in quick time. It is therefore of little interest to such people. waste management. Participation at the Board Level: Representation of employees at the board level is known as industrial democracy.
Employees when empowered become more entrepreneurial and start taking more risks. They meet regularly to identify. Anyone. mission and vision. His say in the process of decision making in increased. participation through empowered teams and joint committees and councils through which they can contribute their share in making the organizations a better place to work. Whereas it is said and has been observed that participative management may lead to increased productivity.Good or Bad inShare What motivates people to work? Money may be the primary reason. There are pros and cons to this employee empowerment. Pros of Employee Empowerment own. motivation. but beyond a certain limit it fails to. However. Supervisors often complain disgust from the empowered workers. Employees can participate in organizational decision making through various processes mentioned above.management. In the latter case it is called participative management. from the organization. Employee empowerment is one of them. there are certain challenges that emerge at the individual level. Lesser need of supervision and delegation. Cons of Employee Empowerment At the individual level employee empowerment means you are an integral component of the organization. Employee Empowerment . It leads to greater job satisfaction. It is an ideal way to identify the problem areas and work upon them to improve working conditions of the organization. can become its member. It also leads to creativity and innovation since the employees have the authority to act on their There is increased efficiency in employees because of increased ownership in their work. it may also slow down the process of decision making and act a potential security threat in terms of ease of access of information it offers to the employees. This may sprout egotism or arrogance in the workers. motivation. Apart from disadvantages at the organizational level. From an organizational perspective the following pros and cons may be associated with employee empowerment. The following points go against employee empowerment: . This can be for one particular individua or for the entire organization. increased productivity and reduces the costs. Participation through Quality Circles: A quality circle is a group of five to ten people who are experts in a particular work area. job satisfaction and quality enhancement. In this style. Participation through Job Enrichment: Expanding the job content and adding additional motivators and rewards to the existing job profile is a fine way to keep workers involved in managerial decision-making. analyze and solve the problems arising in their area of operation. who is an expert of that particular field. Focus on quality from the level of manufacturing till actual delivery and service of goods. there are other ways such as financial participation. Total Quality Management. greater are the chances to succeed. Job enrichment offers freedom to employees to exploit their wisdom and use their judgment while handling day-to-day business problems. Organizations have been trying out different things to increase the level of motivation of its employees. Greater the risk. take risks without compromising with the organizational goals. workers directly deal with all aspects of management or industrial issues through their representatives. Employee empowerment means that an employee is given a chance to be enterprising.
self management. Reduced Costs: There is a lesser need of supervision and more emphasis is laid on widening of skills. Industrial Democracy: Labor unions and workers are empowered and they may misuse the same. Employees avoid reporting about their work and feedback can be taken negatively. most of the employees are satisfied with their jobs and the level of satisfaction id very high. Quality control is thus begins and is ensured at the lowest level. This means that even the minutest details are taken care of and reported. lots of questions arise in the mind of the reader. labor unions gain insights into management and their functioning and they leak the same. which can cost big. Improved Quality: Since the inputs or feedback comes from people who are part of the processes at the lowest or execution level. Security: Since information comes and is shared by all. Motivation: Increased productivity and job satisfaction cannot exist unless there is a high level of motivation in the employee. I am sure. Advantages and Disadvantages of Participative Management inShare After having read lots of stuff about participative management and its implementation. It has to be in a controlled and regulated manner. All this leads to increased productivity. ‘he too has a say in decision making and that he too is an integral component of the organization and not a mere worker’. Psychologically. No flaw or loophole goes unreported. The vice versa also holds true! Decentralized decision making means that everyone has a say and everyone is important. there are apprehensions about leakage of critical data. after all change comes at a cost! These and lot more. the level of participation of knowledge workers is different from that of a floor worker. Workers often lack the expertise to execute are enterprise. But there is more to it. Job Satisfaction: In lots or organizations that employ participative management. The employee now assumes responsibility and takes charges. Disadvantages of Participative Management . this tells the individual employee that. Each aspect has to be carefully studied and levels of participation decided. The following points elucidate the same. Strikes and lock outs become more frequent. This is specially when people see their suggestions and recommendations being implemented or put to practice. Is participative management really beneficial? What are the pros and cons? What are the challenges involved in implementation? What effect does it have upon ROI. There is lesser new or delegation or supervision from the manager. Also. Continue reading for getting your answers. There can be problems in delegating.Egotism / arrogance: Worker arrogance can create a big trouble for the supervisors and the managers. Participative management or employee empowerment does not mean relentless transfer of authority. This and quality control means that the costs are controlled automatically. Working hours may get stretched on their own without any compulsion or force from the management. Risk: Creativity and innovation demands a greater risk bearing capacity and there are equal chances of success and failure. For example. Increase in Productivity: An increased say in decision making means that there is a strong feeling of association now. Advantages of Participative Management Undoubtedly participative approach to management increases the stake or ownership of employees.
Managers sometimes manipulate the process for their own advantage. There are other problems that often arise with the managers. They take it as a device to curtail their powers. Abuse of Authority: Managers sometimes look upon their own jobs as a license instead as a responsibility.There is a flip side to everything. There is confusion if whether participative management means democratization. Workers tendency to deviate: Managers must be aware of the tendency of the workers to try spending more time formulating strategies than focus on job in hand. there are undoubtedly some disadvantages too. Training is also not welcome. It takes time to verify the accuracy of measurements which means that decision making will be slowed down. This often makes registering opinions and suggestions difficult. Whereas this style of leadership or decision making leads to better participation of all the employees. This information may transform into critical information in the later stages. The advantages seem to outnumber the disadvantages. participative management stands no exception to it. Again top level management may not support this style if they find existent inefficiencies. Decision making slows down: Participative management stands for increased participation and when there are many people involved in decision making. Participative management calls for a change and this change can not come overnight. Big size means that there are large numbers of management layers. 2. Size of the Organization: This style of management can be more difficult to implement in organizations that are big in size. cases where disciplinary action is needed do not qualify for participative management. Often the manager needs to delegate or take a decision on his own without consulting or seeking others advice. For example. The problems may arise because of the following: 1. Inputs and feedback starts pouring from each side. 3. Reasons for Failure of Participative Management inShare Participative management is an effective decision making tool. Organizations are different and therefore the culture. This however is no assurance that one should blindly adopt it for his/her organization. Managers often view it as the ends and not as a tool. One stop Solution: Participative management can not always be a one stop solution for every problem. A deep understanding of both is required in order to ascertain a decision making style and adopt the same. It is often the managers who implement it the wrong way. the human resources. There is thus a greater apprehension of information being leaked out. You require patience and consistency before employees realize the usefulness of the management style. the process definitely slows down. This needs to taken care of. Security Issue: The security issue in participative management also arises from the fact that since early stages too many people are known to lots of facts and information. Older employees specially resist change and do not welcome it. Participative Management may fail because of the following reasons: Resistance to Change: Participative Management calls for a change in the entire organizational culture. More difficult can be the implementation of the same. They are unwilling to give away some authority to their subordinate which slows down .
Once this happens then participation can be used as an effective tool to problem solving. It is a mere wastage of time and resources then. They fail to realize that participative style also involves considering the suggestions and recommendations of employees with respect and dignity. This fails the idea of participative management. . Misunderstanding Participation: This is yet another reason for failure of participative management. Most of the organizations view it an end per se and not a mere tool. Managers sometimes fail to understand that participative management is not the same as delegating or distributing responsibility. Participation is isolation can be of no use to the organization. Often such managers complain of being overburdened with responsibilities.and chokes the process of decision making.
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