Participative (or participatory) management otherwise known as employee involvement, stakeholder’s involvement participative decision making, or consultative management, encourages the involvement of stakeholders at all level of an organization in the analysis of problem, development of strategies and implementation of solution. Employees are invited to share in the decision making process of the firm by participating in activities such as setting goals, determining work schedules, and making suggestion. Other forms of participative management include increasing the responsibility of employees (enrichment). Participative management, however, involves more than allowing employees to take part in making decisions. It also involves management treating the ideas and suggestions of employees with consideration and respect. The most extensive form of participative management is direct employee ownership of a company.
Participative Management (PM) refers to as an open form of management where actively involved in organization’s decision making-process. The management seeks a strong relationship with their employees in the form of participative management. They (Management) understand that the employees who deal directly with the customers and satisfy their needs. Participative management has been adopted by many organizations to beat the competition in market. They welcome innovative ideas, concepts and thoughts from the employees and involve them in decision making process. Example: Toyota Company has adopted participative management and they accept 2000000 suggestions and recommendation. The management has try to improve accordingly. British Airways reduce 4.5 million annual cost by employee involvement.
Type of management in which employees at all levels are encourage to contribute ideas towards identifying and setting organizational goals, problem solving, and other decision that may directly affect...