Participatory Management - Definition, Objectives, Levels, Advantages and Dis -advantages

 

Participative management is a kind of management which involves its employees of different levels to be a part of a decision making process, which actually empowers the members of the group.

It is also called as Participative Decision Making, Employee Involvement or Industrial Democracy. It encourages the involvement of stakeholders at all levels of an organization in the analysis of problems, development of strategies, and implementation of solutions.

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.

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.

Objectives of Participatory Management

• 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 labor turnover and absenteeism

Forms or Levels of Participatory 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. 

• 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.

Advantages of Participatory Management

• Increase in Productivity: Through participatory management employee has a strong feeling of association now. He assumes responsible and takes charges, which leads to increased productivity.

• Job Satisfaction: when people see their suggestions and recommendations being implemented they feel they are an integral component of the organization. They are satisfied with their jobs and the level of satisfaction is very high.

• Motivation: Only high level of motivation can lead to increased productivity and job satisfaction.

• Improved Product quality: As the workers are part of decision making they can immediately pin point and suggest remedial measures for improving the efficiency

• Less supervision requirements: There is a lesser need of supervision and more emphasis is laid on widening of skills, self management..

• Hiring Flexibility: Hiring flexibility is increased as a result of cross training. Increased coordination among team members also offers a comfort zone for the newly hired.

• Timeliness: There is improved communication between the managers and the workers and between workers across different units. A loophole or flaw is reported in time.

• Good communication: It leads to good communication, as the work problems are shared by them mutually.

Disadvantages of Participatory Management:

• Decision making slows down: Participative management stands for increased participation and when there are many people involved in decision making, the process definitely slows down. Inputs and feedback starts pouring from each side. It takes time to verify the accuracy of measurements which means that decision making will be slowed down.

• 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. This information may transform into critical information in the later stages. There is thus a greater apprehension of information being leaked out.

• Low quality decisions: Lower quality decisions are also expected through participative decision-making which is not truly effective.

• Biased decisions: If superiors are present or if one member has a dominant personality, the decision of the group may in reality not be a group decision. This can have a lowering effect on group morale and of a negative factor for motivation making for feelings of frustration and uselessness.

CONCLUSION:

Participative management is a leadership structure that encourages people from multiple levels of a company to contribute to managing the organization. Companies that employ this style typically hold positions with formal management roles. It ensures that the needs or concern of every member will be satisfied. And for this cooperation of organizational members is a must.