Participative Management By: Melissa Hawkins Objectives of Presentation • Provide a definition • Describe elements a participative management system should include • Discuss the positive attributes • Discuss the negative attributes • Show if participative management is preferred by either gender • Discuss if culture plays a role in participative management • Discuss which industries work best with participative management Definition • “Participative management is a kind of management style in which subordinates share a significant degree of decision making power with their superiors” (Robbins, cited in Tung-Chun, 1997, p. 677) • “the goal of providing the worker with managerial values through participation in operational decisions, communications, or benefits” (Kovach, Sands Jr. & Brooks, 1981, p. 5) Necessary Elements • Ward (1997) argues that for Participative management to be successful 3 items need to be communicated to workers: Criteria, Contribution & Choice Criteria • Ward (1997) defines criteria as a set of boundaries put into effect by the manager that informs employees of what their ideas must consist Contribution • Ward (1997) defines contribution as implementing employee ideas in the decision making process Choice • Ward (1997) describes choice as giving employees the opportunity to make choices regarding company decisions Necessary Elements • Daft (2004) indicates that participative management needs to focus on a team approach to working versus the typical management status quo • Nowicki and Summerss (2008) stress the need for clear communication from management Positive Attributes • High job satisfaction (Soonhee, 2002) • “offer solutions to problems at reasonable costs” (McCaffrey, Faeman, & Hart, 1995, p. 604) • “allow for greater input from those who have specialized knowledge or expertise” (McCaffrey, Faeman, & Hart, 1995, p. 606) • “individuals have a greater commitment to decisions they helped make” (McCaffrey, Faeman, & Hart, 1995, p. 606) • greater flexibility of company policies (McCaffrey, Faeman, & Hart, 1995, p. 607) Positive Attributes • Saves costs by eliminating unnecessary managerial roles (McCaffery, Faeman, & Hart, 1995) • “Repeated cooperation/collaboration likely leads to respect and trust” (McCaffery, Faeman, & Hart, 1995, p. 612) • “enhances employee’s personal identification with a job” (Kovach, Sands Jr., & Brooks, 1981, p. 6) • “builds employee motivation” (Kovach, Sands Jr., & Brooks, 1981, p. 6) Negative Attributes • Can take too much time to make important decisions (Nowicki & Summers, 2008) • Poor communication from the manager to staff (Nowicki & Summers, 2008) • Increases in productivity may not occur when participation goes up (Powell & Schlacter, 1971) • “barriers to particpative systems are embedded in social, economic, and political principles” (McCaffrey, Faeman, & Hart, 1995, p. 603) Negative Attributes • “Reduces the chances of control of situations by managers” (McCaffery, Faeman, & Hart, 1995, p. 604) • People don’t want to work together because they do not like each other (McCaffery, Faeman, & Hart, 1995) • “exceptionally difficult to develop” (McCaffery, Faeman, & Hart, 1995, p. 605) • Research conducted on participative management is conflicted (McCaffery, Faeman, & Hart, 1995) Gender & Participative Managment • Women in management/leadership positions are found to use participative approaches more than men (Jago & Vroom, 1982; Paris, 2004) • Women are found to be less likely violate rules that are established to support change actions because they recognize the need for commitment to decisions (Jago & Vroom, 1982) • Women typically use groups to come to decisions (Jago & Vroom, 1982) • Men tend to lead with authoritarian approaches (Jago & Vroom, 1982; Paris, 2004) • Women that lead with authoritarian approaches are viewed negatively while men are not (Jago & Vroom, 1982) Culture & Participative Managment • Cultures that recognize gender egalitarianism & low power distance seem to value teamwork as an important method for good leadership (Paris, 2004) • It has been shown through research that Taiwanese organizations offering participative opportunities for employees promotes job satisfaction & lower turnover rates (Huang, 1997) Culture & Participative Managment • Japanese managers “value their employees and work with them as a critical resource”. (Scott, 1981, p. 27) • Japanese management believes strongly in the need for cooperation between managers & workers for productive work environments (Scott, 1981) • In West Germany participative management schemes are mandated by law (Kovach, Sands Jr., & Brooks, 1981) Industry & Participative Management • Blue Collar work environments have not had success with participative management strategies(Kovach, Sands Jr., & Brooks, 1981) • Unions do not like participative management (Kovach, Sands Jr., & Brooks, 1981) • Why? Varying education & job satisfaction is found away from the job (Kovach, Sands Jr., & Brooks, 1981) Industry & Participative Managment • Texas Instruments has a participative management model that was designed to help improve business operations (Myers, 1968) • Texas Instruments focused on job enrichment to induce employee motivation (Myers, 1968) • The Texas Instrument model is: Planning, doing, and control(Myers, 1968) Motorola & Participative Management • Implemented into each plant one at a time with great success • 25% more output from equipment • High cooperation between employees • When vacancies occur/disrupt work day, employees eagerly cover the slack • Improved communication between different shifts • Lower turnover rate & higher job satisfaction • Rest periods/breaks are taken on time • Weaker employees are naturally weeded out • (Scott, 1981) References • Daft, R. L. (2004). Theory Z: Opening the Door for Participative Management. Academy of Management Executive, 18(4), 117-121. Retrieved from Business Source Premier database. • Huang, T. (1997). The Effect of Participative Management on Organizational Performance: The Case of Taiwan. International Journal of Human Resource Management, 8(5), 677-689. Doi: 10.1080/0956851997341450 • Jago, A. G., & Vroom, V. H. (1982). Sex Differences in the Incidence and Evaluation of Participative Leader Behavior. Journal of Applied Psychology, 67(6), 776-783. Retrieved from Business Source Premier database. • Kovach, K. A., Sands Jr., B. F., & Brooks, W. W. (1981) Management by Whom?-Trends in Participative Management. Advanced Management Journal, 46(1), 4-13. Retrieved from Business Source Premier database. • McCaffery, D. P., Faerman, S. R., & Hart, D. W. (1995) The Appeal and Difficulties of Participative Systems. Organization Science, 6(6) 603-627. Retrieved from Business Source Premier database. • Myers, M. S. (1968) Every Employee a Manger. California Management Review, 10(3) 9-20. Retrieved from Business Source Premier database. • Nowicki, M., & Summers, J. (2008) When Participative Management Leads to Garbled Communication. Healthcare Financial Management, 62(2) 118-120. Retrieved from Business Source Premier database. • Paris, L. D. (2004) The Effects of Gender and Culture on Implicit Leadership Theories: A Cross-cultural Study. Academy of Management Proceedings, B1-B6. Retrieved from Business Source Premier database. • Powell, R. M. & Schlacter, J. L. (1971) Participative Management a Panacea?. Academy of Management Journal, 14(2) 165-173. Retrieved from Business Source Premier database. • Scott, W. B. (1981) Participative Management at Motorola-the Results. Management Review, 70(7) 26-29. Retrieved from Business Source Premier database. • Soonhee, K. (2002) Participative Management and Job Satisfaction: Lessons for Management Leadership. Public Administration Review, 62(2) 231-241. Retrieved from Business Source Premier database. • Ward, B. (1997) The Three C’s of Participative Management. Canadian Manager, 22(4) 21-23. Retrieved from Business Source Premier database.