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Management Effectiveness

Effective management is associated with managers who are able to “create a proper climate in which employees can develop to their fullest potential” (Steers and Porter, 1983). Effective management involves management techniques through which employees can be positively influenced through their participation and involvement in the decision making process.

Participative Decision Making

Decision making in companies and organizations is associated with effective employee participation and is considered to be a determining feature of effective management, which not only has a crucial impact on performance but also on the productivity (Shaskin, 1984). Cotton, et al., (1988) assert that participative decision making at work is generally direct and formal and relates primarily to work issues with the workers having an important say and influence in the decision making process. However, they also affirm that not all companies and organizations may have formal participatory decision making and participatory decision making could be an informal process which occurs through participation due to interpersonal relationships between managers and their subordinates (Cotton, et al., 1988). Despite its important role in effective management, researchers note that participative decision making needs specific milieu or background to take place and can prove to be extremely beneficial to large-scale companies if employees are given the opportunity to use participative decision making to bring about positive changes at their workplace (Greengard, 1993).