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Participative Management

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INTRODUCTION 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. It is also called consultative management. Participative management is a part of the broader concept of Employee Involvement. Employee involvement is defined ³as a participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organizational success´(cited in Robbins 2003). However, participative management is a technique of joint decision making; ³That is, subordinates actually share a significant degree of decision-making power with their immediate superiors´ (Robbins 2003). Participative management increases performance, productivity, job satisfaction and motivation. However there are papers that doubt the efficiency of participative management. ³But there also are situations in which participative management, saying can be time-wasting and counterproductive. It can reduce people’s effectiveness and job satisfaction´ (Herman 1989). Robbins (2003)says that there are dozens of research showing that participation has only a modest influence on productivity, motivation and job satisfaction. But the problem is not in participation itself. Participation is effective if it is done in the right conditions (Robbins 2003) and with the right implications (Juechter 1982). Participative management has clear goals and does not turn over the organization to employees. There is still a hierarchy but it is not a dominant hierarchy, which dictates everything to employees. A non-dominant hierarchy has as many levels as are necessary to do the work of the organization. People have clear roles and responsibilities and manage themselves as much as possible. Management tells people what the strategy is

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