Participative Management Style

While customer is still the king, the employees today are seen as the facilitators to satisfy the king. Why? Because, in order to produce goods that will satisfy the increasingly demanding customers today, companies have to come out with better and better products. To beat out the competition and to establish themselves as the market leaders, companies need a three-pronged approach. Good quality, good service and low prices. And to achieve all these three, guess who's becoming the most important person in the world today! The humble employee. Yes, the world has come a full circle from the time when employees were exploited and coercively managed and made to work. Now, the employer who manages the employees best, and keeps them happy, wins over the competitive market today.

What is Participative Management?

Why is it looked upon as the way ahead out of all the leadership styles? Employees have historically been bossed around and told what to do. After all, they aren't the ones who decide things in the company. But that was the old autocratic leadership style. Now the employees are encouraged to take a larger role in making decisions, than what was previously decreed. Employees are encouraged to come up with suggestions to help the company do better. An important feature has been two-way communication, which means that instead of the employer telling the employee what to do, the employee to can bring valuable suggestions to the table and help the employer take a more informed, educated decision.

There are several levels of participation that companies allow employees. Some, more old-fashioned companies, stick to the basics and simply allow the employees a suggestion box, where employees can discuss their grievances and suggest ways for the company to improve in the future. Other, more democratic companies, help train and motivate employees so that they may work more efficiently. The newest buzzword in the job market, though, is career planning. Most companies see career planning as the most effective way to retain their best employees and reduce employee turnover and employee dissatisfaction. In career planning, employees have a say as to what they expect from the company in their employment period. Indeed, the employees are having an increasing amount of influence in the production of goods, effective delivery of services and employment agreements of the company.

Importance of Participative Management

It is a welcome change from the point of view of employees from the old autocratic system. It gives the employees a chance to be heard within the company. It gives the employee a chance to put forth the suggestions that he feels will benefit both himself and the company. With a democratic style of management, employers are trying to make the employee's job less monotonous and more rewarding. It makes the employee feel satisfied when the suggestions he makes are implemented. It creates a better work environment due to improved employee satisfaction.

The chain goes thus: A good employee makes a good product. A good product is one that the customer buys. A product which a customer buys, is the one which makes the profit.

But for participative management to work well, it requires good, motivated and talented employees who are capable to bring forward positive suggestions that will help the company improve. This is perhaps the only constraint in its universal acceptance.