Participative Management

Read this article to know what is Participative Management and how it can be beneficial to an organization.

The concept of Participative Management is closely related with the concept of industrial democracy. Participative management means involving workers in the decision making process. Participative management is based on the concept that when the worker invests his time and ties his fate to the workplace, he should be given an opportunity to participate in the decision making process of the management. The employee should be given an opportunity to express his view and due importance should be given to them by the management while framing policies. Participative management concept was first developed in Western countries and was very successful. Therefore, it has acquired world-wide recognition and popularity.

Features Of Participative Management

Provides Higher Status To Employees:
In participative management, employees are given a chance to participate in the decision making process of the organization. This empowers the employees.
Provides Psychological Satisfaction To Employees:
In participative management, employees are allowed to express their views and their views are given due consideration. Management even frame some policies according to their expectations. This gives psychological satisfaction to employees.
Universally Recognized Concept:
Participative management is a universally recognized concept and it is followed and practiced in many countries.
Brings Employees And Management Closer:
Participative management brings employees and management closer. It facilitates meaningful communication and ensures cordial relations.
Beneficial To Both Parties:
Participative management is beneficial to both parties; organization and employees. Through participative management, both the parties are satisfied.

Need Of Participative Management

To Give Psychological Satisfaction To Workers:
Participative Management is needed in order to give employees psychological satisfaction. They feel important when their views are taken into consideration.
Cordial Labor-Management Relations:
Participative management is needed in order to establish cordial labor-management relations. The participation of workers in management can act as an effective means for preventing industrial disputes.
Creating Uniform Approach Of Employers And Workers:
Participative management is needed in order to have uniform approach of employer and workers on matters important to both the parties. This avoids disputes.
To Raise Industrial Production:
Participative management is needed to raise industrial production. Employers work with enthusiasm and interest when they are given importance and a chance to express themselves.
To Create Platform For Direct Negotiations:

Participative management is needed in order to create a platform for direct negotiations and collective decisions as and when required.
To Create Responsible Approach Among Workers:

More the employees are involved in the activities of the organization, more they would feel responsible towards the organization. Participative management creates a responsible approach among employees.
To Remove grievances Of Employees:
Participation of employees is needed in order to remove doubts, misunderstandings and grievances in the minds of employees as regards policies and activities undertaken by the company.
To Create A Feeling Of Involvement Among Employees:
Employee participation is needed for creating a feeling of involvement among the employees.

Objectives Of Participative Management

To create uniform approach of employer and workers
To establish cordial industrial relations
To raise industrial productivity and to bring stability and prosperity to the business enterprise
To take workers in confidence
To introduce industrial democracy

Pre-Requisites Of Participative Management

Strong Trade Unions:
Existence of strong trade unions with creative and enlightened leadership is necessary for participative management. Workers and their unions must have genuine interest and desire in such participation.
Favorable Attitude Of Management:
The attitude of the management should be progressive and democratic. Management should give due importance to employee's views and suggestions.
Clear Understanding Of Objectives:
Employers and the employees should have clear understanding of objectives of the participation. Participative management should not become a formality.
Education And Training Of Workers:
If employees are properly educated and trained then only the participative management would be meaningful. Employees' representative should have adequate technical, financial and managerial knowledge and information.
Voluntary Participation Desirable:
Participative management should be voluntary and not compulsory. Employees voluntary participation is desired and it largely influences the success of participative management.

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Updated: 02/21/2012, Natasha

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