It term was first commercialized separately by Macgregor (theory X and theory Y), Lickert (four-model system), and Mouton (Managerial Grid) (John Schyuler, Participative Management, 1997). Semler told people in his company, Semco, to think outside their closed-up box, very soon they even forget they had a box (Maverick, 2001). The main reasons for the need of participative management is that employees should have a share in the business’s profit/loss. they should be business literates. and there should be a culture of trust and faith in the entire organization. This report discusses, the following questions regarding participative management in great detail:
Participative management takes a lot of character and skill to apply. It holds the employees accountable for their work instead of just the leader. In it, no authority of any sort is given up, instead the authority is distributes in between the employers and the employees with equal transfer of responsibility. Also it certainly does not mean delayed action. Action is taken quicker and faster in participative management.
Amy Mcmillan says “Participative management is not just allowing employees a part in the business decisions. This scheme can work anywhere and everywhere considering a few points are kept in mind, which include the fact that the employers should be confident and not insecure about letting-go of their stronghold and authority. This increases trust that the employees have over the managers”( Participative Management, 2011).
If the organization was formally democratic or autocratic, than it takes careful strategies and studies for the change to participative management. So employees should be given a little time for adjustment.