Participative Management in Organizations: Problem-Solving and Decision-Making Groups.

Abstract

Participative management, as a style of management, has been in existence for as long as man has had to work in groups. There are differing views, however, on the value of including employees in decision making. On the one h and , some researchers postulate that employee involvement in decision making is "good" under most all circumstances and will promote positive attitudes in such areas as job satisfaction, trust, commitment and perceptions of influence while on the other h and the effects of participation are said to be conditional. This study tested the above assumptions by investigating a participative management program implemented in two plants. A total of 230 employees from two plants participated in this study. The typical employee was male, hourly, 40 years of age, and held a high school diploma. Employees were further differentiated by being direct or indirect participants. Data was collected using surveys at Time 1 (baseline) and Time 2. Twelve groups were formed to solve different plant problems and were governed by a Steering Committee. Recommendations were made to the Steering Committee who rated the merit of each group's solution. Overall results that indicated directs were generally more positive than indirects both at Time 1 and at Time 2. The variables for which there were significant Time 1-Time 2 differences for directs had to do with availability of information and for indirects it was influence in decision making. Perceptions of the value of contributing ideas increased for both groups. One plant was significantly more positive than the other in a number of areas. Group data indicated that certain conditions were more important than others in facilitating participative effects. Groups with quality problems were rated more highly than those with acceptance problems. A typology was developed that suggested successful groups had older, longer tenured members in them, had effective communication, were able to determine problem-solving methods internally, obtained help when needed, and had a leader who facilitated the process.