Participatory management is the practice of empowering members of a group, such as employees of a company or citizens of a community, to participate in organizational decision making.
While group leaders still retain final decision-making authority when participatory management is practiced, participants are encouraged to voice their opinions about their current environment.
In the 1990s, participatory management was revived in a different form through advocacy of organizational learning practices, particularly by clients and students of Peter Senge.
Conceptually, organizational culture is thought to represent a symbolic and ideal system composed of values and norms implemented by its founders, then shared and reflected to influence behavior of its members or employees in the institution.
[4] There are certain institutions that successfully participate in organizational structures specific to hierarchical management models, thereby configuring power distribution, authority, communication and decision making.
Employees are given the freedom and responsibility, accompanied by all the necessary tools needed to delegate decision making, authority and evaluations of existing and foreseeable/unforeseeable problems.
Conflict can stem from problems caused by misinterpretation, or lack of clarity when it comes to communication or questions concerning values, relationships, and goals.
[7] Incorporating this approach to participatory management facilitates shared learning and makes the institution and team development stronger, through the contribution of individuals.
Communicating values, creating a safe and comfortable environment along with a genuine and concerted effort should be at the foundation of an organization or institution aiming to implement participatory management as a successful tool.
Participatory management may lead to increased productivity, motivation, job satisfaction and quality enhancement, however, it may also slow down the process of decision making and act as a potential security threat by providing access to valuable information to fellow employees.
From a socio-economic perspective, a major benefit is the increase of social acceptability levels for specific protection frameworks (Stoll-Kleemann and Welp, 2008).
Furthermore, the application of 'softer' and participatory management tools may assist in local economic development through, for example, eco-tourism activities and minimization of social conflicts (Misra and Kant, 2004, Chowdhury and Koike, 2010, Nuggehalli and Prokopy, 2009, Nayak and Berkes, 2008, Sandstrom and Widmark, 2007, Matose, 2006 and Jones et al., 2012a).
The hospital implemented a Care Transformation Initiative that focused on eliminating wasteful activities and actions and applying an atmosphere of participatory management.
According to the Report on the Caribbean Symposium on Social Development held in Barbados in March 1995, "Empowerment is facilitated when agencies make a genuine commitment to shared responsibility and joint decision making, design projects and programs around the perceived needs and the involvement of beneficiaries, adopt community-based and gender-sensitive approaches.
[13] Participatory management has been criticized because it is difficult to combine this practice with a more financially oriented approach to restructuring that may require downsizing.