What is Participative Management?
Participative Management refers to the technique of inviting members of the organization to take an active part in the organization-wide decision-making process. This approach is followed by the organizations which value the relevance of human intellect and strives for developing a good relationship with their personnel.
That is why, it is also called as Participative Decision Making, Employee Involvement or Industrial Democracy. It comprises of various elements including increased communication and cooperation, joint decision making, quality circles, quality of work-life, increase in job satisfaction, conflict resolution, etc.
It is regarded as an open form of management, as it includes all those members in the decision making of the company, who are likely to be affected by the decision. It ensures that the needs or concern of every member will be satisfied. And for this cooperation of organizational members is a must.
Objectives of Participative Management
Participative Management is a tool for increasing the productivity and efficiency of the organization, as well as building strong relations with the workers and employees. The objectives of Participative Management are:
- To encourage harmonious relations between the company’s management and workmen.
- To develop mutual trust and understanding amidst the company’s management and workmen.
- To ensure a considerable level of job satisfaction.
- To give the opportunity to the workers to freely express their views towards the company’s goals and laws.
- To attain a significant increase in production.
- To provide welfare facility to the workmen.
- To give training to the workers in understanding as well as sharing the responsibilities of the management.
- To facilitate teamwork.
- To develop a dynamic human resource.
- To decrease labour turnover and absenteeism.
At present, many organizations have adopted this concept, as it encourages open and unbiased communication, which not just help in the company to grow, but also maintains transparency in the company’s operations. It also gives freedom of expression to the employees. Moreover, it also increases job satisfaction in the employees.
Forms or Levels of Participative Management
The ways in which workmen can take part in management is called forms of participation. There are a number of forms in which Participative Management exists, wherein the level indicates the extent and depth of employee’s participation in the management. Come let’s discuss the various forms/levels of participative management:
- Informative Participation: In this type of participation, members are entitled to receive information, discuss and offer suggestions or express their views on various issues of general economic importance.
- Consultative Participation: As the name suggests, the organization’s management consults with the workers on various matters of employee welfare like working conditions, safety and health. But, the ultimate decision is taken by the company’s top-level management and the views of the employees are taken into account while deciding on the matter. This means that it is up to the discretion of the management, to accept or reject the suggestions.
- Associative Participation: It is the extended form of consultative participation, as in such participation, the company management is morally obligated to adopt and execute the unanimous decisions and suggestions of the workers. And so the management and workers of the organization participate in the decision jointly.
- Administrative Participation: In administrative participation, the level of authority sharing is higher. It facilities freedom to the employees in exercising administrative and supervisory powers.
- Decisive Participation: It implies the greatest level of participation, which involves complete sharing of decision making, and the delegation of authority is maximum at this stage. Therefore, joint decision making is there, where workers actively participate.
The levels discussed above showcase increasing degree of worker’s participation in the management depending upon the nature of functions, worker’s strength, department, etc. In this, informative participation is the lowest and decisive participation is the highest form of participation in an organization.
Importance of Participative Management
The concept of participative management is a universally accepted one and that is why it is implemented by many organizations, worldwide. The importance of participative management is:
- The employees easily connect themselves with the organization, which results in improved performance.
- It motivates employees, due to their involvement in the management.
- It increases job satisfaction and cooperation of employees, which reduces conflicts in the workplace.
- More commitment and dedication is seen in employees towards the achievement of goals.
- It leads to good communication, as the work problems are shared by them mutually.
With this technique, the employees get an opportunity to share their ideas, suggestions and feedback regarding the company’s policies and decisions. Also, they feel responsible for the achievement of organizational goals.