9 Importance of Participative Management in the Organization (Explained)

Importance of Participative Management

What is the importance of participative management? Now the concept of participative management is accepted worldwide. Organizations are actively inviting their employees to different decision-making processes.

Since it creates a positive and cooperative working environment both employees and the management i.e. organization benefit in many ways. Some of the significance of participative management are mentioned below:

Builds Cooperation

Participative management is a tool to establish a cooperative environment in the workplace. It fosters mutual understanding, mutual trust, equal treatment, and respect for all members of the organization.

It creates a working environment where employees can easily with the least conflicts work together to accomplish common goals. Bringing cooperation in participative management promotes teamwork, reduces conflicts, and easily drives employees’ collective efforts to a common goal.

Generates New Ideas

The goal of participative management is to invite different levels of employees to get their different ideas. Since different employees are invited they present different opinions regarding the matter.

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Their opinions are a great way you generate different new ideas for a solution. As they are different in terms of ability, knowledge, and skills they can also present different creative solutions. The new and creative ideas might also increase the performance of your organization.

Employee Satisfaction

Nothing can motivate you more than seeing your suggestions into practice. Participatory management welcomes employees’ suggestions and puts them into practice.

Such action is a great way to motivate employees. In addition, it equally values the recommendations of employees, gives equal opportunities to each employee to share ideas, and treats equally to them. This certainly makes them feel the value of their presence in the organization and increases their motivation and satisfaction.

Employee Commitment

Employees commit to such an organization that is good for their physical and psychological health. It empowers employees through different pieces of training to enhance their ability to understand managerial positions and delegate necessary authority also to complete given duties.

Such actions increase employees’ stake in the work or company. As they feel the decision is made through their suggestion they take it as their own and give their best. This results in more employee involvement, less absenteeism, and increases employees’ commitment to the organization.

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Employee-Management Relationship

Participative management opens up the door for employees to interact with organizations’ heads. Improved communication between managers and employees increases their mutual understanding and whenever problems or solutions arise employees do not hesitate to present.

A good participative work culture ensures good relationships between managers and employees and different business units. It then ensures effective collaboration between them, fewer employee-management conflicts, brings harmony, and promotes coordination in the organization.

Quality Product

Since employees work at the lower level they know the quality of the products and how the product is serving customers. They can immediately specify the weak point and give remedial suggestions to improve the efficiency of the process they are a part of. This may ensure an effective production process and result in quality products.

Better Customer Satisfaction

Employees better know the customers than the top managers. As they directly interact with different customers they know how customers are feeling about the company’s offerings, and understand their service points, their satisfaction factors, and their consumption patterns.

One of the importance of participative management is that it increases customer satisfaction. Since employees are well informed about customers’ different aspects their suggestions greatly help managers to make plans and products that meet customers’ expectations and satisfy them.

Less Supervision

When you create a participative working environment your work will be done even with less supervision. Since it ensures healthy working culture and promotes teamwork employees feel motivated to complete their given tasks at their best effort without others’ pressure.

The diversity of employee opinions lets them generate new effective ideas and cooperation between team members lower conflicts and motivates each other to perform better. It is because in a participative environment, employees are more guided by group norms than individual norms.

Improved Performance and Productivity

Participative culture motivates employees to do more. Since participatory management drives cooperation, employee motivation, satisfaction, commitment, cardinal management-employee relationship, and better coordination all these positively help to improve organizational performance and productivity.

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