Participatory Management theory and practices in organization

Participatory Management theory and practices in organization

Read the article and write a review of it (about 3-5 pages). In your review, discuss any concerns that may affect the methods suggested to increase staff input.

Participatory Management theory and practices in organization

Introduction

Management is one of the oldest professions in the world. Nearly two thousand years ago, the

Chinese developed the management organization structure known today as traditional line

authority structure. Under this form of management style, organizations are usually organized

functionally, putting similar people together into departments: human resources, accounting,

engineering, etc. The flaw with this structure is that it encourages fiefdoms and often leads to

huge walls that separate interdependent parties. In recent years however, a relatively new

phenomenon has begun to change the workplace. That change is participatory management.

Some call it work team, total quality management, others call it self-managing team, etc.

Participatory Management – A process where subordinates share significant degree of decisionmaking

power with their immediate superiors. Good management is a tool to ensure people get

the best from any organization and to ensure to organization can do what it wants and needs to

do, without wasting precious time, energy or money. To achieve this target, participatory

management style is vital for manager to create team context, to strengthen commitment of the

team at every level to make it efficient. Participation is a much used word these days.

Participatory management means that staff, not only the designated managers, have input,

ownership and influence over the decisions that affect the organization. Now a days, knowing

and establishment of participatory management approach is a most important job of an

Executive. Because, in participatory management, the designated managers (or manager) still

have (or has) the final responsibility for making decisions and answering for them, but members

of the staff who are affected by those decisions are actively sought to provide observations,

analysis, suggestions and recommendations in the executive decision making process. It is

similarly important for project participants to whom we work. That’s why key players of the

organization is to ensure participatory design, planning, implementation and management in all

aspects of the project.

Participatory Management

As noted in the brief overview of the development of management thoughts, the behavioral

school has most directly influenced the development of the concepts of participatory

management. The field of organizational behavior most impacted the practice of participatory

management principles and skills. Beginning in the mid 1950’s and continuing even today, much

has been written about participatory management. Participatory style of management is based on

the principle of “faith”. Under this style of management, the leadership and management places

full faith in the abilities of the employees. The tasks are given directly to the employees and are

well-explained to them in advance. Their inputs on the tasks are also given due importance. The

employees know how their work is fitting into the organization’s big goals. When their inputs are

sought and they are also made aware how important they are to the health of the organization,

their motivation levels become very high and they perform better. This style is usually seen in

smaller organizations, with lesser number of employees.

Need for the participative management

In today’ dynamic global market, no one manager or a group of managers is equipped with all the

necessary knowledge to address all the issues or problems in an organization. The complexity of

today’s organizational problems or issues require the combined expertise of all the members of

the organization from the production workers to top management working in concert in order to

satisfy today’s ever demanding customers.

Success Stories of Participatory Management

Considerable change is underway in many of America’s workplaces, driven in part by

international and domestic competition, technology and workforce development. These external

forces are interacting with a growing recognition that achieving a high productivity / high wage

economy requires changing traditional methods of labor, management relations and the

organization of work in a way that may fully develop and utilize the skills, knowledge, and

motivation, of the workforce and share the gains produced. Data from recent focus-group

interviews carried out by the Princeton Survey Research Center report that hourly workers,

professional and technical employees and supervisors consistently stated that among the things

they value most in a job are variety, freedom to decide how to do their work without closed

supervision. They also reported that they value information and communication regarding things

that affect their work and their firm and evidence that their employers seek, value and act on

their suggestions for improvement at their workplace (Challenge, 1995).Thus, since the 1980’s

there has been a substantial expansion in the number and variety of employee-participation

efforts and workplace committees in both establishments governed by collective-bargaining

agreements and those without union representation. These arrangements take a wide variety of

forms such as: Quality Circle, employee participation teams, etc. ( Challenge 95).Some of the

major corporation who are reaping the benefits of participatory management are GE, IBM,

Allied Signal, Super Sack, just to name a few. GE Fanuc Automation North America Inc. for

example, has been transforming itself into a team- based organization since the late 1980s.In

1994, it posted its best results ever (Barrier ,1995). During an interview with Brad Eisenbarth, a

production manager at Super Sack manufacturing plant in Savoy Texas, for a study on the impact

of participatory management on productivity and employee moral, he responded by saying ”

Here, it is a family feeling where things are a lot opened particularly, with regard to passing on

and sharing information.” That sentiment was shared by Brian Suchsland, an industrial engineer

also at Super Sack who said ” Here you have the enthusiasm and attitude you need for a

successful business”(Verespej, A. 1995 ).

Objectives of Participative Management

Participative management acts as a force to motivate employees to meet specific organizational

goals. The main idea behind this style of management is not only using physical capital but also

making optimum utilization of intellectual and emotional human capital. This is the process of

involving people in decision making process to ensure that everyone’s psychological needs are

met. It, in turn, increases the job satisfaction among employees and improves the quality of their

work life. Motivated employees are the biggest assets of an organization and participative

management is an effective strategy to retain the best talents of the industry. Participatory

Management or co-determination is seen as the quick cure for poor morale, employee attrition,

low productivity and job dissatisfaction. However, it may not be appropriate to empower

employees at every level but use of joint decision making at certain levels in organization can

work wonders. Let us read further to explore the main objectives to introduce participative style

of management in organizations:

Ø To Make Best Use of Human Capital: Participative management does not restrict

organizations to exploit only physical capital of employees. Rather it makes the best use

of human intellectual and emotional capital. It gives employees an opportunity to

contribute their ideas and suggestions to improve business processes and create a better

working environment.

Ø To Meet the Psychological Needs of Employees: When employees have a say in

decision making process, it gives them a psychological satisfaction. It is a simple force

that drives them to improve their performance, create a proper channel of communication

and find practical solutions to design better organizational processes.

Ø To Retain the Best Talent: Participatory management is one of the most effective

strategies to retain the best talent in the industry. It gives employees a sense of pride to

have a say in organizational decision making process. Once they are valued by their

seniors, they stick to the organization and become management’s partners in meeting

specific goals and achieving success.

Ø To Increase Industrial Productivity: In today’s competitive world, motivation, job

security and high pay packages are not enough to increase industrial productivity.

Leadership, flexibility, delegation of authority, industrial democracy and employee say in

decision making are important to increase annual turnover of any organization.

Ø To Establish Harmonious Industrial Relationship: Participatory from of management

is an unbeatable tact to establish and maintain cordial relationships with employees and

workers union. The success of an organization depends on its human resources.

Employee empowerment acts as a strong force to bind the employees and motivate to

give them their best to the organization.

Ø To Maintain a Proper Flow of Communication: Two-way communication plays an

important role in the success of any organization. Employee participation in decision

making ensures proper flow of communication in the organization. Everyone contributes

their best and tries to strengthen the organization by contributing their best to improve

business processes.

Participative management is beneficial to organization as well as employees. It gives employees

a higher degree of enjoyment at work place that drives them to work harder. It is equally

rewarding for the management as it ensures tremendous improvement in work culture within the

organization as well as increase in its productivity.

Participatory Management Styles

Participatory management is a system in which employees of a business organization take an

active role in the decision-making process as it relates to the way the business operates. There

are various approaches to the level of participatory management a business may engage in. Some

examples are self-managed work teams, professional enrichment opportunities, increasing levels

of responsibility for employees and even employee-owned business ventures.

Information Management

One style of participatory management is creation of a workplace environment in which

information is shared readily with employees. This includes financial projections, earnings and

operational budgets as well as information related to long-term strategic planning. This approach

provides transparency in all aspects of business and allows for employee comment, input and

suggestions.

Mentoring and Training Management

A participatory managed work environment provides ongoing training, skills development,

professional enrichment and mentoring to employees at all levels. Employees regularly take on

new or additional responsibilities, cross-train in different areas of business and give their

newfound skills a hands-on try under the supervision of a mentor. Employees are encouraged to

share knowledge and information with the goal being a diversely trained, well-rounded

workforce that takes advantage of each employee’s most notable skills.

Recognition Management

Another form of participatory management includes a forum in which employees are recognized

regularly for their achievements and contributions. The reward approach is designed to increase

performance, motivate employees and provide positive reinforcement for a job well done.

Employees also have the opportunity to see how their contributions directly affect the company

in a positive manner.

Teaching Management

Participatory management often features a teaching component in which employees are guided

on the fundamentals of the decision-making process. Employees receive insight into a particular

problem, issue or strategy and the cognitive tools necessary for breaking down the issue into

problem-solving components. Using this management style, employees continually enhance their

knowledge of how the company operates and are able to bring ever-improving skills to the

workplace.

Shared Decision-Making Management

All forms of participatory management include a form of shared decision-making, but this

particular style goes even deeper. Under shared decision-making management, employees

participate in focus group, complete surveys, participate in brainstorming sessions and often

work in self-monitored groups on specific tasks and projects. Management typically provides

parameters for employees to work within and to contribute suggestions and ideas, and many also

feature a formal review process to ensure every idea is weighed and vetted carefully.

Advantages of Empowerment into the project teams

Ø It harnesses the ability of the team members to manipulate tasks so that project objectives

are met. The team is encouraged to find better ways to do things.

Ø Professionals do not like being micromanaged. Participative management does not tell

them how to work but, given a goal, allows them to design their own methods.

Ø The team members know they are responsible and accountable for achieving the project

deliverables.

Ø There is a good chance that synergistic solutions will result from team interaction.

Ø Team members get timely feedback on their performance.

Ø The PM is provided a tool for evaluating the team’s performance.

Impact of management by objectives (MBO) on organizational productivity

Management by Objective (MBO) is one of the perfect example or process of participatory

management or empowerment. Goal setting, participation in decision making and objective

feedback have each been shown to increase productivity. As a combination of these 3 processes,

management by objectives (MBO) also should increase productivity. The literature on MBO

indicates that various problems have been encountered with implementing MBO programs. One

factor was predicted to be essential to success: the level of top-management commitment to

MBO. Proper implementation starts from the top and requires both support and participation

from top management.

The “Management by Objective” (MBO) approach, in the sense that it requires all managers to

set specific objectives to be achieved in the future and encourages them to continually ask what

more can be done, is offered as a partial answer to this question of organizational vitality and

creativity. MBO is a process or system designed for supervisory managers in which a manager

and his or her subordinate sit down and jointly set specific objectives to be accomplished within

a set time frame and for which the subordinate is then held directly responsible. All organizations

exist for a purpose and to achieve that purpose, top management sets goals and objectives that

are common to the whole organization. Plans and objectives are passed down from one

managerial level to another and subordinates are told what to do and what they will be held

responsible for. The superior brings specific goals and measures for the subordinate to a meeting

with this subordinate, who also brings specific objectives and measures that he or she sees as

appropriate or contributing to better accomplishment of the job. Together they develop a group

of specific goals, measures of achievement, and time frames in which the subordinate commits

himself or herself to the accomplishment of those goals. The subordinate is then held responsible

for the accomplishment of the goals. The manager and the subordinate may have occasional

progress reviews and reevaluation meetings but at the end of the set period of time, the

subordinate is judged on the results the he or she has achieved. He or she may be rewarded for

success by promotion or salary increases or he or she may be fired or transferred to a job that

will provide needed training or supervision. Whatever the outcome, it will be based on the

accomplishment of the goals the subordinate had some part in setting and committed himself or

herself to achieving.

Benefits of Participation

In participatory management, the designated managers (or manager) still have (or has) the final

responsibility for making decisions and answering for them but members of the staff who are

affected by those decisions are actively sought to provide observations, analysis, suggestions and

recommendations in the executive decision making process.

The organization will be benefitted in many ways if participation management implemented.

Ø Organization will run better if staff are more loyal, feel needed and wanted, feel that they

are respected and feel that their opinions count. If pro-actively seek their input into

management decision making, that will contribute to all those things. Decisions tend to

be better when they can call on a wider range of knowledge, information and experience.

No matter how wise and experienced a boss may be, s/he does not have as much

experience as the total of all her/his staff.

Ø Trust is an important factor of leadership. Participatory approaches usually mean that

decision making is more transparent. That, in turn, increases the trust of the staff, and the

leadership of the manager is increased. And transparency itself is an added benefit to this

approach.

Ø When decisions are made in active consultation with the staff, there is less suspicion of

illegal and immoral decisions being made in sneaky circumstances. As with community

participation, the end result is that participatory management yields many benefits.

Ø There are a few costs, however, to obtaining participatory input. One is that it takes time

to obtain it and decisions are there for slower than when they are made unilaterally. When

staff argue for a particular decision but the regulations, the budget, the board, or the head

office do not allow that decision, then staff will be disappointed; some may even ask why

they participated. It needs the manager to show that even though they all wanted a

particular path to be taken, circumstances beyond management – even beyond

participatory management – hindered them from taking that path. When staff are hotly

divided on a particular issue, this will be revealed when it appears as a management

decision. Disagreements may affect the work. The manager must put in extra time and

effort to reach a decision – with staff participation – that will reduce that schism.

Ø While there are a few irritations in taking a participatory approach to management, the

many benefits outweigh the costs.

Ø According to conventional academic wisdom, perceptions of procedural justice are

important to corporate efficiency. Employee voice promotes a sense of justice, increasing

trust and commitment within the enterprise and thus productivity. Workers having a

voice in decisions view their tasks as being part of a collaborative effort, rather than as

just a job. In turn, this leads to enhanced job satisfaction, which, along with the more

flexible work rules often associated with work teams, results in a greater intensity of

effort from the firms workers and thus leads to a more efficient firm.

Ø Although this view of participatory management has become nearly hegemonic, the

academic literature nevertheless remains somewhat vague when it comes to explaining

just why employee involvement should have these beneficial results. Despite the

democratic rhetoric of employee involvement, participatory management in fact has done

little to disturb the basic hierarchical structure of large corporations. Instead, it is simply

an adaptive response to three significant problems created by the tendency in large firms

towards excessive levels of hierarchy. First, large branching hierarchies themselves create

informational inefficiencies. Second, informational asymmetries persist even under

efficient hierarchical structures. Finally, excessive hierarchy impedes effective

monitoring of employees. Participatory management facilitates the flow of information

from the production level to senior management by creating a mechanism for by-passing

mid-level managers, while also bringing to bear a variety of new pressures designed to

deter shirking.

 

 

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