Participative management

Meaning and concept of participative management

It is known as employee involvement or participative decision making. This is a dynamic group oriented concept. It encourages the involvement of stake holders at all levels of an organization. Employees are invited to be the shareholders of the company or stand at board of directors to solve and raise the problems at work level and argue on collective agreement on rules, regulations, orders and delegation. It provides autonomy to employee for doing their job it helps to ensure the increment in productivity, job satisfaction. It ensures higher level of motivation, improves quality of work done and so on. It plays the role of non financial reward for motivation and happiness. It considers human feeling and aspiration. Business organizations are now an important social institution. Newer policy regarding social goals and value are also to be implemented. Participative management helps to enrich the social norms and increase the profit on all aspect of the society and economy. It gives oneness feeling to the employees too.

Objectives of participative management

1. to make the best use of human capital
2. to meet the psychological needs of employees
3. to retain talented staff
4. to increase productivity
5. to establish harmonious relationship
6. to maintain proper flow of communication

Advantages of participative management

1. increase in productivity
2. job satisfaction
3. motivation
4. improved quality
5. reduces cost

Disadvantages of participative management

1. decision making slows down
2. lack of secrecy

Methods of participative management

1. Participation through ownership(making employees shareholders of the company)
2. Participation at board level(representative from employee at board of directors to solve and raise the problems at work level)
3. Participation through collective bargaining(collective agreement on rules, regulations, orders and delegation)
4. Participation through suggestion schemes(increment in ideas and innovation)
5. Participation through complete control(union acts of employees as management so acquire control on management)
6. Participation through job enrichment(expansion of job)
7. Participation through quality circles(group pf experts working in a particular area)