Participatory Management
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Participatory management is the practice of empowering members of a group, such as employees of a company or citizens of a community, to participate in organizational
decision making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either rati ...
. It is used as an alternative to traditional vertical management structures, which has shown to be less effective as participants are growing less interested in their leader's expectations due to a lack of recognition of the participant's effort or opinion. This practice grew out of the
human relations The concept of interpersonal relationship involves social associations, connections, or affiliations between two or more people. Interpersonal relationships vary in their degree of intimacy or self-disclosure, but also in their duration, in t ...
movement in the 1920s, and is based on some of the principles discovered by scholars doing
research Research is "creativity, creative and systematic work undertaken to increase the stock of knowledge". It involves the collection, organization and analysis of evidence to increase understanding of a topic, characterized by a particular att ...
in
management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...
and
organization studies Organization studies (also called organization science or organizational studies) is the academic field interested in a ''collective activity, and how it relates to organization, organizing, and management''. It is "the examination of how individua ...
, most notably the Hawthorne Experiments that led to the
Hawthorne effect The Hawthorne effect is a type of reactivity in which individuals modify an aspect of their behavior in response to their awareness of being observed. The effect was discovered in the context of research conducted at the Hawthorne Western Electri ...
. While group leaders still retain final decision-making
authority In the fields of sociology and political science, authority is the legitimate power of a person or group over other people. In a civil state, ''authority'' is practiced in ways such a judicial branch or an executive branch of government.''The N ...
when participatory management is practiced, participants are encouraged to voice their opinions about their current environment. In the workplace, this concept is sometimes considered
industrial democracy Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decisi ...
. In the 1990s, participatory management was revived in a different form through advocacy of
organizational learning Organizational learning is the process of creating, retaining, and transferring knowledge within an organization. An organization improves over time as it gains experience. From this experience, it is able to create knowledge. This knowledge is bro ...
practices, particularly by clients and students of
Peter Senge Peter Michael Senge (born 1947) is an American systems scientist who is a senior lecturer at the MIT Sloan School of Management, co-faculty at the New England Complex Systems Institute, and the founder of the Society for Organizational Learning ...
.


About


Theories

The participatory management model or at least techniques for systematically sharing authority emphasize concerns with the delegation of decision making authority to employees. Participatory management has cut across many disciplines such as
public administration Public Administration (a form of governance) or Public Policy and Administration (an academic discipline) is the implementation of public policy, administration of government establishment (public governance), management of non-profit establ ...
,
urban planning Urban planning, also known as town planning, city planning, regional planning, or rural planning, is a technical and political process that is focused on the development and design of land use and the built environment, including air, water, ...
, and public policy making. In theory, the model does much more than recognize that employees ought to be able to recommend changes or course of action, but rather reflect a belief that authority should be transferred to and shared with employees. The belief in this theory stems from understanding what the culture of an organization or institution represents. Conceptually, organizational culture is thought to represent a symbolic and ideal system composed of
values In ethics and social sciences, value denotes the degree of importance of something or action, with the aim of determining which actions are best to do or what way is best to live (normative ethics in ethics), or to describe the significance of dif ...
and norms implemented by its founders, then shared and reflected to influence behavior of its members or employees in the institution. The culture of the organization or institution is in turn used to guide the meaning of the organization's work. There are certain institutions that successfully participate in organizational structures specific to hierarchical management models, thereby configuring power distribution, authority, communication and decision making. In an
Organizational Structure An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the foundat ...
, or Classical Management, employees do not participate in the decision making process. Employees receive, interpret and carry out orders after the decisions are made by administrators. Participatory management is a shift in the
management paradigm Management fad is a term used to characterize a change in philosophy or operations implemented by a business or institution. The term is subjective and tends to be used in a pejorative sense, as it implies that such a change is being implemented ...
from a top-down approach to a more self-facilitated and self-sustained approach. Employees are given the freedom and responsibility, accompanied by all the necessary tools needed to delegate decision making, authority and evaluations of existing and foreseeable/unforeseeable problems. One tool in participatory management is implementing a
Contingency Theory A contingency theory is an organizational theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and ext ...
approach. This theoretical approach acknowledges that every problem is different, therefore every problem requires different approaches and solutions.Principles of participatory management consist of fundamental ideas that seek to empower and enhance the employee's understanding of problems as to explore and generate the greatest potential solutions embodying the ideals of democratic inclusion and participation.


Shifting to and implementation

Shifting the paradigm from classical management to participatory management requires a collaborative consensus as an organization or institution with communication, inclusion, transparency and development. Creating and sustaining an adaptive capacity for ongoing problem solving with an emphasis on social and
transformative learning Transformative learning, as a theory, says that the process of "perspective transformation" has three dimensions: psychological (changes in understanding of the self), convictional (revision of belief systems), and behavioral (changes in lifestyle ...
through trust, sustained engagement, and relationship development are important factors when contributing to the overall success or failure of participatory management. Fostering a comfortable environment for employees by creating transparency and building new relationships support broad participation in ongoing planning, implementation, and evaluations which sustains diverse participation in managing expectations and actions with a collective understanding of goals and outcomes. When implementing this theory, the only thing for certain is uncertainty. Managing uncertainty must be conceptually addressed to reduce conflict. Conflict can stem from problems caused by misinterpretation, or lack of clarity when it comes to communication or questions concerning values, relationships, and goals. Deliberative, collaborative, and consensus based approaches facilitate transformative learning as it includes an array of diverse perspectives to optimize learning outcomes through the interaction of values, interests, and worldviews also known as, collaborative science or
collaborative method Collaborative methods are processes, behaviors, and conversations that relate to the collaboration between individuals.Spence, Muneera U. ''"Graphic Design: Collaborative Processes = Understanding Self and Others."'' (lecture) Art 325: Collaborativ ...
of consensus. Incorporating this approach to participatory management facilitates shared learning and makes the institution and team development stronger, through the contribution of individuals. Communicating values, creating a safe and comfortable environment along with a genuine and concerted effort should be at the foundation of an organization or institution aiming to implement participatory management as a successful tool.


Effects


Productivity

Participatory management may lead to increased
productivity Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...
,
motivation Motivation is the reason for which humans and other animals initiate, continue, or terminate a behavior at a given time. Motivational states are commonly understood as forces acting within the agent that create a disposition to engage in goal-dire ...
,
job satisfaction Job satisfaction, employee satisfaction or work satisfaction is a measure of workers' contentedness with their job, whether they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Job satisfaction can be ...
and quality enhancement, however, it may also slow down the process of
decision making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either rati ...
and act as a potential security threat by providing access to valuable information to fellow employees. This section will discuss the effects Participatory Management had at the NATURA 2000 forest sites in Greece and the pros and cons participatory management has on productivity in the workplace. In a study concerning the effectiveness of a participatory management framework in
Protected Areas Protected areas or conservation areas are locations which receive protection because of their recognized natural, ecological or cultural values. There are several kinds of protected areas, which vary by level of protection depending on the ena ...
(PAs) in which are located in areas with strong state-based environmental management, the study states, "From an environmental perspective, there is
evidence Evidence for a proposition is what supports this proposition. It is usually understood as an indication that the supported proposition is true. What role evidence plays and how it is conceived varies from field to field. In epistemology, evidenc ...
that involvement of a
community A community is a social unit (a group of living things) with commonality such as place, norms, religion, values, customs, or identity. Communities may share a sense of place situated in a given geographical area (e.g. a country, village, tow ...
in the management of a PA can result to a more effective management of
biodiversity Biodiversity or biological diversity is the variety and variability of life on Earth. Biodiversity is a measure of variation at the genetic (''genetic variability''), species (''species diversity''), and ecosystem (''ecosystem diversity'') l ...
" (e.g. Blomley et al., 2008). This is mainly because participatory management frameworks promote sustainable management practices (Berkes et al., 2003). From a
socio-economic Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern societies progress, stagnate, or regress because of their local ...
perspective, a major benefit is the increase of social acceptability levels for specific protection frameworks (Stoll-Kleemann and Welp, 2008). Furthermore, the application of 'softer' and participatory management tools may assist in local
economic development In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and o ...
through, for example,
eco-tourism Ecotourism is a form of tourism involving responsible travel (using sustainable transport) to natural areas, conserving the environment, and improving the well-being of the local people. Its purpose may be to educate the traveler, to provide fund ...
activities and minimization of social conflicts (Misra and Kant, 2004, Chowdhury and Koike, 2010, Nuggehalli and Prokopy, 2009, Nayak and Berkes, 2008, Sandstrom and Widmark, 2007, Matose, 2006 and Jones et al., 2012a). In addition, participatory management allows the use of local values and knowledge for the management of a specific area of high biodiversity value in combination with scientific information (Berkes, 2004)." In summary, the study states, participatory management may result in a more effective management framework. Participatory Management may contribute to a more productive environment by: * Promoting sustainable management practices. * Increasing social acceptability levels. * Minimizing social conflicts, for example: eliminating
competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, indivi ...
. * Allowing the use of local values and knowledge to be utilized during management. * Greater job satisfaction which in turn increases productivity * Reduced costs through increased
efficiency Efficiency is the often measurable ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without ...
and a lesser need for supervision and delegation. * Participatory Management can lead to the
empowerment Empowerment is the degree of autonomy and self-determination in people and in communities. This enables them to represent their interests in a responsible and self-determined way, acting on their own authority. It is the process of becoming strong ...
of employees which in turn could lead to employees taking more
risks In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environme ...
. These risks can be successful or harmful to the project's productivity level.Djogbenou,, C., Kakaï, R., Arouna, O., & Sinsin, B. (2012). Analysis of local perceptions of participatory forest management in Benin.. Harms participatory management can have on productivity levels: *
Creativity Creativity is a phenomenon whereby something new and valuable is formed. The created item may be intangible (such as an idea, a scientific theory, a musical composition, or a joke) or a physical object (such as an invention, a printed literary w ...
and
innovation Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity ...
may lead to harmful risks which can then render the project's productivity level to fail. * Participatory management may lead to individual empowerment; which in turn can lead to
egotism Egotism is defined as the drive to maintain and enhance favorable views of oneself and generally features an inflated opinion of one's personal features and importance distinguished by a person's amplified vision of one's self and self-importanc ...
/ arrogance. Egotism / arrogance can result in problems for the supervisors and
managers Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...
; they can have problems delegating their employees, thus resulting in poor productivity. * Individual empowerment may lead to decreased productivity on account of different opinions and
cultures Culture () is an umbrella term which encompasses the social behavior, institutions, and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.Tyl ...
clashing.


Perceptions

Participatory management can have negative and positive effects on individuals in the
workplace A workplace is a location where someone Work (human activity), works, for their employer or themselves, a place of employment. Such a place can range from a Small office/home office, home office to a large office building or factory. For Indust ...
. In order for participatory management to have a positive effect, there must be "trust in
institutions Institutions are humanly devised structures of rules and norms that shape and constrain individual behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions a ...
, social trust and
social network A social network is a social structure made up of a set of social actors (such as individuals or organizations), sets of dyadic ties, and other social interactions between actors. The social network perspective provides a set of methods for an ...
s". "Trust in institutions influences communities'
perceptions Perception () is the organization, identification, and interpretation of sensory information in order to represent and understand the presented information or environment. All perception involves signals that go through the nervous system ...
". When there is a high level of trust among a
community A community is a social unit (a group of living things) with commonality such as place, norms, religion, values, customs, or identity. Communities may share a sense of place situated in a given geographical area (e.g. a country, village, tow ...
, "citizens tend to be more positive towards
collaborative Collaboration (from Latin ''com-'' "with" + ''laborare'' "to labor", "to work") is the process of two or more people, entities or organizations working together to complete a task or achieve a goal. Collaboration is similar to cooperation. Most ...
management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...
frameworks". Social networks are important for the flow of information because it influences the level of participation in management frameworks, the level of awareness in a community and also environmentally responsible behaviors. Employee perceptions in the workplace may create an atmosphere in which an individual feels the freedom to use their creativity and unique
skills A skill is the learned ability to act with determined results with good execution often within a given amount of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills. For example, in the domain of wo ...
. Workers may welcome this freedom to increase motivation and develop a deeper liking towards their job. If individuals feel a deeper connection with their job, it is thought that individuals will then ultimately take more pride in their work. Participatory management can have a positive perception on some, while on others it could lead to egotistic behaviors, and ultimately disrupt the group's cohesiveness. Positive effects participatory management has that can lead to positive employee perceptions: * Employees may have greater job satisfaction and motivation towards their job * Employees are given the opportunity to use their creativity and innovation which in turn can lead to increased
happiness Happiness, in the context of Mental health, mental or emotional states, is positive or Pleasure, pleasant emotions ranging from contentment to intense joy. Other forms include life satisfaction, well-being, subjective well-being, flourishin ...
and independence * Employees have more independence therefore may take more responsibility and pride in their work. * Employees feel like an integral component towards the organization and therefore have more pride, motivation, and incentive to fulfill the project. Negative effects participatory management has that can lead to negative employee perceptions: * Individuals develop egotism / arrogance, therefore making a tense environment among the other workers. * Egotism / arrogance among workers can lead to supervisors obtaining disgust towards their egotistic employees.


Examples of implementation

The ideals of participatory management have been implemented in several different industries and sectors, both successfully and unsuccessfully. One such shift in management styles was studied in a public hospital in Alberta, Canada in 2009. The hospital implemented a Care Transformation Initiative that focused on eliminating wasteful activities and actions and applying an atmosphere of participatory management. This initiative was only implemented in one of the programs in the hospital. That program was studied along with another program in which the initiative was not implemented. The main findings of the study showed that, first of all, organizational change is difficult and takes time. Some workers, particularly older ones, were resistant to the change. The management and clinical staff reported little understanding of their specific contribution to organizational decisions. Despite these challenges, staff also reported feeling optimism that this organizational change may lead to better change in the future. A different study reviewed the effect of participatory management already in effect in the automobile industry in Macedonia. This workplace had already experienced the shift from a top down management style to this new participatory management style. The existence of participation was analyzed through the existence of participatory strategic planning and effective supervisory communication. The findings of this study showed that employees who thought their managers listened to them, and who thought they had a voice in decisions, were significantly happier and more productive than those who did not have the same feelings about the workplace.


In different cultures

According to studies conducted with regard to various cultures, the reported extent of use of participatory leadership among the Iranian managers correlated significantly and positively with the reported extent of use of motivation via teamwork, the reported effectiveness of communication, the reported extent of group participation in the decision-making process, and the reported extent of group participation in the control process. This trend is particularly present among Iranian, Saudi-Arabian, and American cultures. However, American managerial styles cannot simply be transplanted to other cultures; participatory management styles must be adapted to each culture's beliefs system. Caribbean cultures have also adapted forms of participatory management among managers. According to the Report on the Caribbean Symposium on Social Development held in Barbados in March 1995, "Empowerment is facilitated when agencies make a genuine commitment to shared responsibility and joint decision making, design projects and programs around the perceived needs and the involvement of beneficiaries, adopt community-based and gender-sensitive approaches." Community-based management in these cultures not only improves employer-employee relationships, it enhances employee output as well.


Criticisms

Multiple criticisms exist in opposition to participatory management as a result of its massive change from traditional
management styles Management consists of the planning, prioritizing, and organizing work efforts to accomplish objectives within a business organization. A management style is the particular way managers go about accomplishing these objectives. It encompasses the wa ...
. One of the major concerns put forward by the need for massive change is that of high monetary and resource costs. For this reason, institutions often attempt to only partially implement participatory management or do so in stages. During this process the concept fails to be completely respected by leaders and participants and thus fails, and is often reversed before it is ever able to be properly implemented. This indicates that the change required for true participatory management may be too much for larger organizations. Another issue seen in the participatory management concept is the potential for poor quality participation. Especially when implemented for large scale use, such as with the citizens of a city, it has been shown that if participants are not fully aware of their ability to participate or if they are not properly informed by leaders on what feedback they are expected to provide, there will be either minimal or passive participation. As a combination of criticisms, an overall result of failure in participatory management is misrepresentation of participants. Along with the factors involved in the previously stated criticisms, misrepresentation can also be due to unexpected participants providing feedback when the expected participants did not, typically seen in city management where participatory management was implemented as an attempt to exploit the community's perceived bias towards a certain decision. This could result in an unexpected voting outcome. As well, any decision could be swayed by participants being coerced within the system to provide feedback in pursuit of someone else's agenda. Participatory management has been criticized because it is difficult to combine this practice with a more financially oriented approach to
restructuring Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons ...
that may require downsizing.


See also

*
Participatory Democracy Participatory democracy, participant democracy or participative democracy is a form of government in which citizens participate individually and directly in political decisions and policies that affect their lives, rather than through elected rep ...
*
Public participation Public participation, also known as citizen participation or patient and public involvement, is the inclusion of the public in the activities of any organization or project. Public participation is similar to but more inclusive than stakeholder en ...
*
Quality circle A quality circle or quality control circle is a group of workers who do the same or similar work, who meet regularly to identify, analyze and solve work-related problems. It consists of minimum three and maximum twelve members in number. Normally ...
*
Workers' Self-Management Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management based on self-directed work processes on the part of an organization's workforce. Self-management is a def ...


References

{{Reflist


External links

* Barle, Phil. website
Participatory Management module
Methods to Increase Staff Input in Organizational Decision Making.
The Foundation for Development Cooperation
- Provider of effective Participatory Project Management Training Workshops in the Asia-Pacific Region Organizational theory