[4] "The basic concept involves any power-sharing arrangement in which workplace influence is shared among individuals who are otherwise hierarchical unequals.
Such power-sharing arrangements may entail various employee involvement schemes resulting in co-determination of working conditions, problem solving, and decision-making".
When employees participate in the decision-making process, they may improve understanding and perceptions among colleagues and superiors, and enhance personnel value in the organization.
Researchers have found that PDM may positively impact the following: By sharing decision-making with other employees, participants may eventually achieve organization objectives that influence them.
In the words of Arnstein,"There is a critical difference between going through the empty ritual of participation and having the real power needed to affect the outcome of the process.
This difference is brilliantly capsulized in a poster [available for viewing in her article]... [which] highlights the fundamental point that participation without redistribution of power is an empty and frustrating process for the powerless.
"[14]When PDM takes place in a team setting, it can lead to social situations which cause adverse outcomes.
[15] Van der Helm, an independent futurist based in the Hague, The Netherlands, outlines ten major disadvantages, or dilemmas, of increased participation.
[17] PDM may take many forms and can run the gamut from informal suggestion systems to direct high involvement at the policy and administrative level.
High involvement PDM entails power and information sharing, as well as advanced human resource development practices.
[19] The democratic leadership style involves facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision.
[23] In a consensus participative decision-making style, the leader gives up complete control and responsibility of the decision and leaves it to the members of the organization.
In such situations, the decision maker delegates full or partial responsibility of decision-making for a particular area of concern, to the expert on the team for best management outcomes.
[10] Additionally, employee outcomes can also be evaluated according to six criteria:[7] Some important constraints:[16] According to Oostvogels' review[28] of the book "Facilitator's Guide to Participatory Decision-making" by Sam Kaner et al.,[29] the book is based on a concept called "The Diamond of Participatory Decision-making" which "... is a schematic representation of the different stages in time through which a team has to move in order to develop a solution that is satisfactory to all."
Although a relatively new approach, this way can involve endless possibilities in order to reach a major organizational decision.
[32] In Northern Germany, while regulations have been changed to favor more participative forms of decision-making, planning approval decisions for wind farms are still mostly centralized.
However, since the introduction and success of market reforms, other areas including those linked to the environment have experienced increased openness toward participatory decision-making.
In the case of pricing, management, and provision of water services, the Chinese authorities have experimented with public hearings as a way of acclimatizing citizens to the changes in approach and opportunities for their participation, such that "…hundreds of formal public hearings on water tariffs have been organized within 30 provinces, excluding Tibet".
[34] Holley (2010) discusses a review of the extent to which the aims of new environmental governance (NEG) in Australia, including provisions for increased public participation, are being realized.
"[35] While progress is being made in many areas to increase participation in environmental decision-making, as evidenced in Holley's example above, much work remains to be done.
In our modern world, PDM in business field of finance are mostly base on the three categories: Autocratic, Collective-participative and consensus participative.