TABLE OF CONTENTS
Sr. No  Particulars  Page No. 
1  CERTIFICATE  I 
2  DECLARATION  II 
3  ACKNOWLEDGEMENT  III 
4  LIST OF GRAPHS  IV 
5  LIST OF ABBREVIATIONS   
6  CHAPTER 1- 
 INTRODUCTION OF PARTICIPATIVE 
MANAGEMENT.  
6  CHAPTER 2- 
 PROFILE OF IMT.PVT.LTD   
7  CHAPTER 3-  
THEORITICAL VIEW OF 
PARTICIPATIVE MANAGEMENT   
8  CHAPTER 4- CASE STUDY OF IMT 
PVT. LTD   
9  CHAPTER 5-  
CONCLUSION OF STUDY  
10  BIBLIOGRAPHY & WEBLIOGRAPHY       
LIST OF GRAPHS  
GRAPH 1: TENURE IN THE ORGANISATION 
GRAPH 2: WORKING ENVIRONMENT 
GRAPH 3: SATISFACTION WITH MANAGEMENT 
POLICIES. 
GRAPH 4: RECOGNITION FOR SUGGESTIONS. 
GRAPH 5: RIGHT TO DECISION-MAKING IN 
ABSENCE OF SUPERIOR AUTHORITY. 
GRAPH 6: SATISFACTION WITH REGARDS TO 
DECISION MAKING PROCESS. 
GRAPH 7: TIMELY IMPLEMENTATION OF 
SUGGESTIONS. 
GRAPH 8: METHOD OF SELECTIN OF 
SUGGESTIONS. 
GRAPH 9: TREATMENT TOWARDS EMPLOYEES IN 
TERMS OF SUGGESTIONS. 
GRAPH 10: ABILITY TO CONTRIBUTE TO THE 
ORGANISATION. 
GRAPH 11: SATISFACTION OF WORKING OF 
PARTICIPATIVE MANAGEMENT. 
GRAPH 12: SURITY OF WORKING IN THE 
ORGANISATION. 
LIST OF ABBREVIATIONS  
  IMT PVT LTD: 
INTERACTIVE MULTIMEDIA TECHNOLOGIES PRIVATE 
LIMITED.                  
                                    CHAPTER.1 
INTRODUCTION 
Participative management or workers participation in management is considered as a mechanism 
where workers have a say in the decision making process of an enterprise. It indicates an attempt 
on the part of an employer to build his employees into a team which work towards the realization 
of a common objective. 
 DEFINITION:- 
  According  to  Davis,  It  is  a  mental  and  emotional  involvement  of  a  person  in  a 
group  situation  which  encourages  him  to  contribute  to  goals  and  share 
responsibilities in them. 
  Mamoria defines it as a  system of communication and consultation either formal 
or  informal  by  which  employees  of  an  organization  are  kept  informed  about  the 
affairs  of  the  undertaking  and  through  which  they  express  their  opinion  and 
contribute to management decisions.   
The participative management incorporates the willing acceptance of responsibilities by body of 
workers. As they become party to decisions making, the workers have to commit themselves to 
ensuring  their  implementation.  The  broad  goal  of  participation  is  to  change  basically  the 
organizational aspect of production and transfer the management function entirely to the workers 
so that management becomes Auto management.       
FORMAL V/S. INFORMAL  
The  forms  of  workers  Participation  in  management  depends  on  the  differences  in  the  levels  of 
management  ,  the  subject  matter  of  participation  ,  the  strength  of  union  and  the  pattern  of 
industrial relations. The important forms in which workers could participate in management are: 
1. Collective Bargaining 
2. Joint decision making 
3. Consultation 
4. Information sharing 
They may take the form of formal organizations like work committee, joint management council 
or  an  informal  system.  The  example  of  an  informal  system  is  a  supervisor  consulting  a  worker 
before taking any decision in which the latter is interested.  
 DIFFERENT VIEWS 
The scope, extent and the successful working of the participative management depends to a great 
extent  on the  objectives  and  the  three  important  factors  of  the  system  of  industrial  relations  i.e. 
the employee, the employer and the government. The objectives as viewed by these three parties 
contradict with  each other in  India. The workers expect that participative management schemes 
will  lead  to  the  achievement  security  of  employment,  better  wages,  bonus,  etc.  The  employers 
interest  is  in  the  maximization  of  profit  through  increased  production  and  minimization  of 
expenditure. The government expects the scheme to bring about closer association between labor 
and  management  and  industrial  peace.  It  is  viewed  that  it  is  this  variance  in  the  objective  of 
participation as perceived by the three sectors that is responsible for the unsuccessful functioning 
of schemes of participative management.   
ABOUT THE REPORT 
TITLE OF THE STUDY:  
The present study is titled as  A PROJECT REPORT ON PARTICIPATIVE MANAGEMENT 
OF IMT PVT LTD  
OBJECTIVES OF THE STUDY: 
  To gain in-depth knowledge about participative management. 
  To study importance and benefits of participative management in general. 
  To study the role of participative management in organization. 
DATA AND METHODOLOGY: 
For completing the project both primary and secondary data were used. 
Primary data was collected from visits and questionnaire. 
Secondary data was collected from reference books and companys site.      
CHAPTER LAYOUT 
CHAPTER 1: 
Information of the project and introduction of the title.  
CHAPTER 2: 
Profile of INTERACTIVE MULTIMEDIA TECHNOLOGIES.  
CHAPTER 3: 
Theoretical view of Participative Management.  
CHAPTER 4: 
Analysis  on  Participative  Management  with  reference  to  INTERACTIVE  MULTIMEDIA 
TECHNOLOGIES.  
CHAPTER 5: 
Summary of the study.                 
CHAPTER 2 
PROFILE OF THE COMPANY  
Interactive Multimedia Technologies (IMT) is a Mumbai based, IT Services Provider, offering 
solutions and services designed with a focus on secure, scalable, expandable and reliable 
business systems. 
Founded in the year 1999 IMT has since then been continuously expanding. The Software of the 
Company, Mumbai is engaged in providing software development services to bring 'value' to 
their customers. They provide IT Services in a dynamic environment, where business and 
technology strategies are conveniently converged.  
Expertise  
Their goal is to become your long term, IT partner. Their team becomes an extension of your 
own in-house IT team, dedicated to meeting your software development needs today, and 
growing with you as your need evolve. Their extensive and varied experience allows them to 
offer their clients a wide range of systems and services which maximizes efficiency, increases 
productivity and delivers security, while also being cost-effective and adding real business value. 
At IMT, they design what they sell, deploy what they design, and support everything they 
deliver. 
They offer IT Solution, IT Enabled Services and Offshore Development Services.   
Vision and Mission 
Drive for Excellence, Innovation beyond Technology       
Mission  
It is their mission to empower clients and employees with tools to stand apart and steer business 
and the company to the milestones envisioned. Their commitment spans every single IT 
requirement that may arise. They take care of all customer IT- related operations, so that they can 
dedicate their valuable time and resources in developing their core business.  
Vision  
Their vision is that their progressive ideologies and world-class expertise will always help them 
to surpass limitations and stay at the forefront of their field. As leaders in the IT and ITES 
industry, they believe that their responsibility to their clients goes Beyond Technology.   
Success Journey  
In less than a decade, IMT evolved from a 4-member team offering focused multimedia services 
into a dynamic organization that caters to every single IT and communication requirement of 
their clients.  
The Inception  
IMT's inception can be traced back to 1998, when interactive Multimedia expert Mr.Hetin 
Sakhuja and Six sigma specialist Mr.Mehul Bavishi sparked the idea of starting a specialized 
web development and graphic design company. Gradually, as the clientele grew, so did the range 
of offerings; IMT soon began offering a wide variety of exclusive and progressive IT product 
and services.     
Era of Expansion 
It wasn't long before IMT moved beyond the sphere of IT and launched its sister concern, 
Sunshine Communication Pvt.Ltd., in 1999 to offer premium Advertising and Marketing 
services. The synergy between these two units marked the beginning of continual expansion for 
IMT. By integrating high standards of technological expertise with powerful communication 
insights, IMT's scope of operations expanded phenomenally, opening up vast vistas of 
possibilities of benefit their clients.   
Looking Ahead  
Today, IMT is one of India's fastest growing companies, offering a plethora of innovative 
products and services to a wide spectrum of clients across the globe. With the progressive spirit 
deeply ingrained in their team, one thing is for certain: they will continue to expand their range 
of offerings and aspire to further height of innovation, progress and brilliance.  
Team  
IT People, Core Competencies 
Their deeply committed people are their most important asset. Their teams combine diverse 
capabilities and profile that range from domain experts to technologists and solution architects. 
They are united by an unwavering integrity and a strong sense of commitment to their clients.  
IMT is powered by some of the brightest minds and most highly qualified professionals in the 
industry. Their human resources are exceedingly valuable to them. It is their talent, enthusiasm 
and constant pursuit for excellence that places them at the apex of their field.  
At the helm of their organization are IMT India founder Mr. Hetin Sakhuja (Post-Graduate in 
Interactive Multimedia) and Mr. Mehul Bavishi (an experienced Six Sigma Certified 
Professional).Their vision ,business acumen, pioneering spirit and in-depth knowledge of the 
business and technological spheres guide and inspire our team at every step of the way. 
Equipped To Excel  
The people at IMT bring in their distinctive sets of skills to generate a vibrant, idea-charged 
working atmosphere that is grounded in technical know-how and incisive business sense. As 
their team members pool together their areas of expertise, every project is led to high standards 
of quality and innovation, as they are driven to develop products that they can be truly proud of 
their team is divided into 5 sections, reflecting their core competencies: 
Creative: Big ideas and spectacular presentations 
Technical: Flawless operation and innovative implementation 
Business Development: Inspired vision and new targets 
PR And Administration: Reaching out to the world and securing our own 
Management: Strategic planning and executive responsibilities  
Work Culture  
Dedicated to making a difference  
Every work day at IMT is all about ordinary people who believe they can make an extraordinary 
difference. This mind-set forms the cornerstone of the IMT Culture .As an IMTian employees 
shall be expected to meet day to day challenges with simplicity, while also imbibing creativity 
and innovation in your approach. Their Team is empowered to be able confidently and 
proficiently meet new challenges and provide rewards for their achievement. 
Values of their Human Resource Management System 
  Vision-driven and value-based 
  Relationship built on openness and trust 
  People-oriented environment 
  Development of team culture 
  Achievement of a qualitative work life 
Their people are their assets, essential to their success and therefore, they invest in them 
accordingly. Their commitment to the team is aimed at developing their potential and helping 
them achieve their goals with each others support.                         
CHAPTER 3 
THEORETICAL VIEW 
Meaning of participative Management:-   
The  concept  of Participative  Management is  closely  related  with  the  concept  of  industrial 
democracy. Participative management means involving workers in the decision making process. 
Participative management is based on the concept that when the worker invests his time and ties 
his fate to the workplace, he should be given an opportunity to participate in the decision making 
process  of  the  management.  The  employee  should  be  given  an  opportunity  to  express  his  view 
and  due  importance  should  be  given  to  them  by  the  management  while  framing  policies. 
Participative  management  concept  was  first  developed  in  Western  countries  and  was  very 
successful. Therefore, it has acquired world-wide recognition and popularity.  
DEFINITION:- 
Type  of  management  in  which  employees  at  all  levels  are  encouraged  
to contribute ideas towards  identifying  and  setting  organizational-goals, problem  solving,  and 
other decisions that may directly affect them. It is also called as consultative management.     
Objectives of participative management 
Participative  management  acts  as  a  force  to  motivate  employees  to  meet  specific 
organizational  goals.  The  main  idea  behind  this  style  of  management  is  not  only  using 
physical capital but also making optimum utilization of intellectual and emotional human 
capital. This is the process of involving people in decision making process to ensure that 
everyones psychological needs are met. It, in turn, increases the job satisfaction among 
employees  and  improves  the  quality  of  their  work  life.  Motivated  employees  are  the 
biggest assets of an organization and participative management is an effective strategy to 
retain the best talents of the industry. 
Participatory Management or co-determination is seen as the quick cure for poor morale, 
employee  attrition,  low  productivity  and  job  dissatisfaction.  However,  it  may  not  be 
appropriate  to  empower  employees  at  every  level  but  use  of  joint  decision  making  at 
certain levels in organization can work wonders. Let us read further to explore the main 
objectives to introduce participative style of management in organizations: 
  Make  Best  Use  of  Human  Capital: Participative  management  does  not  restrict 
organizations to exploit only physical capital of employees. Rather it makes the 
best  use  of  human  intellectual  and  emotional  capital.  It  gives  employees  an 
opportunity  to  contribute  their  ideas  and  suggestions  to  improve  business 
processes and create a better working environment. 
  To  Meet  the  Psychological  Needs  of  Employees: When  employees  have  a  say 
in  decision  making  process,  it  gives  them  a  psychological  satisfaction.  It  is  a 
simple  force  that  drives  them  to  improve  their  performance,  create  a  proper 
channel  of  communication  and  find  practical  solutions  to  design  better 
organizational processes. 
  To  Retain  the  Best  Talent: Participatory  management  is  one  of  the  most 
effective strategies to retain the best talent in the industry. It gives employees a 
sense  of  pride  to  have  a  say  in  organizational  decision  making  process.  Once 
they  are  valued  by  their  seniors,  they  stick  to  the  organization  and  become 
managements partners in meeting specific goals and achieving success. 
  To  Increase  Industrial  Productivity: In  todays  competitive  world,  motivation, 
job  security  and  high  pay  packages  are  not  enough  to  increase  industrial 
productivity.  Leadership,  flexibility,  delegation  of  authority,  industrial 
democracy  and  employee  say  in  decision  making  are  important  to  increase 
annual turnover of any organization.     
  To Establish Harmonious Industrial Relation: 
  Participatory  form  of  management  is  an  unbeatable  tact  to  establish  and 
maintain  cordial  relationships  with  employees  and  workers  union.  The 
success  of  an  organization  depends  on  its  human  resources.  Employee 
empowerment  acts  as  a  strong  force  to  bind  the  employees  and  motivate  to 
give  them  their  best  to  the  organization.  To  Maintain  a  Proper  Flow  of 
Communication: Two-way  communication  plays  an  important  role  in  the 
success  of  any  organization.  Employee  participation  in  decision  making 
ensures  proper  flow  of  communication  in  the  organization.  Everyone 
contributes  their  best  and  tries  to  strengthen  the  organization  by  contributing 
their best to improve business processes. 
Participative management is beneficial to organization as well as employees. It gives employees 
a  higher  degree  of  enjoyment  at  work  place  that  drives  them  to  work  harder.  It  is  equally 
rewarding for the management as it ensures tremendous improvement in work culture within the 
organization as well as increase in its productivity.   
Features of Participative Management 
  Provides higher status to employees: 
In  participative  management,  employees  are  given  a  chance  to  participate  in  the 
decision making process of the organization. This empowers the employees. 
  Provides psychological satisfaction to employees: 
In participative management, employees are allowed to express their views and their 
views  are  given  due  consideration.  Management  even  frames  some  policies 
according to their expectations. This gives psychological satisfaction to employee 
  Universally recognized concept: 
Participative management is a universally recognized concept and it is followed and 
practiced in many countries.  
  Brings employees and management closer: 
Participative  management  brings  employees  and  management  closer.  It  facilitates 
meaningful communication and ensures cordial relations. 
  Beneficial  to both parties: 
Participative management is beneficial to both parties; organization and employees. 
Through participative management, both the parties are satisfied.     
Need of participative management:  
  To give psychological satisfaction to workers: 
Participative  Management  is  needed  in  order  to  give  employees  psychological 
satisfaction. They feel important when their views are taken into consideration. 
  Cordial Labor-Management Relations: 
Participative management is needed in order to establish cordial labor-management 
relations. The participation of workers in management can act as an effective means 
for preventing industrial disputes. 
  To raise industrial production: 
Participative  management  is  needed  to  raise  industrial  production.  Employers  work 
with  enthusiasm  and  interest  when  they  are  given  importance  and  a  chance  to 
express them.. 
  Creating uniform approach of employers and workers: 
Participative management is needed in order to have uniform approach of employer 
and workers on matters important to both the parties. This avoids disputes. 
  To create platform for direct negotiations: 
Participative  management  is  needed  in  order  to  create  a  platform  for  direct 
negotiations and collective decisions as and when required.  
  To create responsible approach among workers: 
More  the  employees  are  involved  in  the  activities  of  the  organization,  more  they 
would feel responsible towards the organization. Participative management creates a 
responsible approach among employees. 
  To remove grievances of employees: 
Participation of employees is needed in order to  remove doubts, misunderstandings 
and  grievances  in  the  minds  of  employees  as  regards  policies  and  activities 
undertaken by the company. 
  To create a feeling of involvement among employees: 
Employee  participation  is  needed  for  creating  a  feeling  of  involvement  among  the 
employees.  
Pre-requisites of participative management: 
  Strong trade unions: 
Existence  of  strong  trade  unions  with  creative  and  enlightened  leadership  is 
necessary  for  participative  management.  Workers  and  their  unions  must  have 
genuine interest and desire in such participation. 
  Favorable attitude of management: 
The attitude of the management should be progressive and democratic. Management 
should give due importance to employee's views and suggestions. 
  Clear understanding of objectives: 
Employers  and  the  employees  should  have  clear  understanding  of  objectives  of  the 
participation. Participative management should not become a formality. 
  Education and training of workers: 
If  employees  are  properly  educated  and  trained  then  only  the  participative 
management would be meaningful. Employees' representative should have adequate 
technical, financial and managerial knowledge and information.   
  Voluntary participation desirable: 
Participative  management  should  be  voluntary  and  not  compulsory.  Employees 
voluntary  participation  is  desired  and  it  largely  influences  the  success  of 
participative management.  
Advantages of participative management: 
Undoubtedly  participative  approach  to  management  increases  the  stake  or  ownership  of 
employees. But there is more to it. The following points elucidate the same.  
  Increase in productivity: 
An  increased  say  in  decision  making  means  that  there  is  a  strong  feeling  of 
association  now.  The  employee  now  assumes  responsibility  and  takes  charges. 
There  is  lesser  new  or  delegation  or  supervision  from  the  manager.  Working 
hours  may  get  stretched  on  their  own  without  any  compulsion  or  force  from  the 
management. All this leads to increased productivity. 
  Job satisfaction: 
In  lots  or  organizations  that  employ  participative  management,  most  of  the 
employees  are  satisfied  with  their  jobs  and  the  level  of  satisfaction  id  very  high. 
This is especially when  people see their suggestions and recommendations being 
implemented or put to practice. Psychologically, this tells the individual employee 
that, he too has a say in decision making and that he too is an integral component 
of the organization and not a mere worker. 
  Motivation: 
Increased productivity and job satisfaction cannot exist unless there is a high level 
of  motivation  in  the  employee.  The  vice  versa  also  holds  true!  Decentralized 
decision making means that everyone has a say and everyone is important.    
  Improved quality: 
Since the inputs or feedback comes from people who are part of the processes at 
the lowest or execution level. This means that even the minutest details are taken 
care of and reported. No flaw or loophole goes unreported. Quality control is thus 
begins and is ensured at the lowest level. 
  Reduced costs: 
There  is  a  lesser  need  of  supervision  and  more  emphasis  is  laid  on  widening  of 
skills,  self  management.  This  and  quality  control  means  that  the  costs  are 
controlled automatically. 
Disadvantages of participative management: 
There  is  a  flip  side  to  everything;  participative  management  stands  no  exception  to  it.  Whereas 
this style of leadership or decision making leads to better participation of all the employees, there 
are undoubtedly some disadvantages too. 
  Decision making slows down: 
Participative  management  stands  for  increased  participation  and  when  there  are 
many  people  involved  in  decision  making,  the  process  definitely  slows  down. 
Inputs  and  feedback  starts  pouring  from  each  side.  It  takes  time  to  verify  the 
accuracy  of  measurements  which  means  that  decision  making  will  be  slowed 
down.  
  Security issue: 
The security issue in participative management also arises from the fact that since 
early  stages  too  many  people  are  known  to  lots  of  facts  and  information.  This 
information  may  transform  into  critical  information  in  the  later  stages.  There  is 
thus a greater apprehension of information being leaked out. 
The advantages seem to outnumber the disadvantages. This however is no assurance that 
one  should  blindly  adopt  it  for  his/her  organization.  Organizations  are  different  and 
therefore the culture, the human resources. A deep understanding of both is required in  
order to ascertain a decision making style and adopt the same. 
Methods and techniques of participation: 
Organizations  use  a  variety  of  programs  aimed  at  increasing  employee  participation.  All  the 
different  programs  have  one  major  objective  and  that  is  to  increase  employee  participation. 
Participative management is basically a process where subordinates share a significant degree of 
decision  making  with  their  immediate  superiors.  The  different  types  of  participative  programs 
are: 
  Works committee: 
The  Industrial  Disputes  Act  of  1947  provides  for  establishing  works  committees  in 
every  establishment  employing  hundred  or  more  workers.  This  legislation  thus 
makes  it  compulsory  for  the  organization  to  ensure  employee  participation.  The 
work  committees  consist  of  equal  number  of  members  of  workers  and  employer. 
The main function of the work committees is to promote measures for securing and 
preserving  amity  and  good  relations  between  the  employers  and  the  workers.  Their 
task is to smooth away any friction that may occur between the management and the 
workers.  Unions  consider  these  committees  as  a  threat  to  their  existence  as 
employers prefer to talk to these committees rather than the union. There is lack of 
interest  among  workers  in  works  committees  as  they  concentrate  only  on  minor 
issues and not major issues. 
  Co-partnership: 
In this method employees are paid the share of profit in the form of shares and not 
cash.  Thus  workers  become  shareholders  in  the  company  in  which  they  are 
employed.  Being  shareholders  of  the  company  in  which  they  are  entitled  to 
participate  in  management.  They  also  receive  dividend  on  their  shares.  The 
problem  with  this  method  is  that  employees  are  not  interested  in  co-partnership 
and want their share of profit in cash and refuse to accept shares of the company.    
  Employee Directors: 
Under  this  method  one  or  two  representatives  of the  worker  are  nominated  on  the 
board  of  directors  of  the  company.  They  enjoy  the  same  privileges  and  have  the 
same  authority  as  other directors  have.  The  problem  of  this  method  of  participation 
is that many worker directors are ignorant about their role on the board and get in to 
conflict with other board members. 
  Joint Management Councils: 
Under  this  system  joint  management  councils  are  constituted.  These  councils 
consist  of  equal  number  of representatives  of  employer  and  workers.  The 
councils  discuss  various  matters  concerning  the  working  of  the  company.  The 
decision  of  these  councils  is  advisory  in  nature.  The  council  generally  discusses 
matters relating to working conditions, prevention of accidents, indiscipline, and 
training. 
  Suggestion schemes: 
As  the  name  itself  indicates  suggestion  programs  are  formal  plans  to  invite 
individual  employees  to  make  suggestion  for  work  improvements.  The 
suggestions  are  then  sorted  out  as  per  their  applicability  and  cost-benefit  ratio. 
Employees whose suggestions result in cost saving for the organization are given 
monetary rewards that are proportionate to the companys savings. The limitation 
of this method  is that there is a possibility that employees may be feel dejected if 
there  is  a  delay  in  the  processing  of  suggestions  or  if  certain  ideas  that  appear 
good are rejected.   
.      
SCOPE OF PARTICIPATIVE MANAGEMENT:- 
 The  scope  of  participative  style  of  management  certainly  depends  on  the  organization,  its 
nature,  functions  and  processes.  Though  associating  employees  at  every  stage  of  decision-
making  is  not  possible  still  regular  exchange  of  information,  ideas,  consultations,  thoughts, 
decisions  and  negotiations  between  employer  and  the  employees  definitely  is  a  boon  to  the 
organization. Few of the worlds biggest organizations like Toyota, HSBC, British Airways, 
Satyam, British Gas and Nokia Cellular have achieved considerable profits and value creation 
by  implementing  the  most  amazing  ideas  of  their  employees.  Their  success  witnesses  the 
importance of workers participation in the process of decision-making.  
The  scope  of  workers  involvement  in  managerial  decision-making  may  extend  to  social, 
economic  and  personnel  decision  making  depending  upon  the  requirements  of  the 
organization.  But  there  is  a  difference  of  opinion  about  the  extent  to  which  employees  can 
employees  can  participate  in  managerial  decision-making  process.  Should  they  be  equal 
partners  and  make  joint  decisions  or  should  workers  be  given  opportunities  through  their 
seniors to come up with the ideas. The first school of thoughts favors the actual participation 
of workers while the second school of workers in managerial decision making. It is up to the 
management  to  decide  which  style  it  prefers  and  till  what  extent  it  requires  involvement  of 
employees.  
However, if we talk about the scope of the workers participation in social, if we talk about 
the scope of social, economic and personnel decision-making, it may have a direct impact on 
some of the most crucial activities of the organization. These three groups of managerial 
decision-making can affect any industrial establishment in following ways:  
  SOCIAL DECISION-MAKING 
It  refers  to  employee  involvement  in  decision  making  regarding  hours  of  work, 
rules  and  regulations  at  workplace,  welfare  measures,  workers  safety,  employee 
welfare, health and sanitation. In this category, employees have a say in decisions 
in  these  areas.  They  may  take  an  advantage  of  their  liberty  and  sometimes,  can 
dominate the management. Here the concept of bounded or restricted participation 
can work well. 
  Economic/Financial Decision-Making: 
It  includes  involvement  of  employees  on  various  financial  or  economic  aspects 
such  as  the  methods  of  manufacturing,  cost  cutting,  automation,  shut-down, 
mergers  and  acquisition  and  lay-offs.  Inviting  ideas  from  employees  on  various 
issues like how to cut down the operating cost can work wonders.    
  Personnel Decision-Making:  
The  employees  participation  in  personnel  decision-making  refers  to  their 
involvement  in  various  management  processes  including  recruitment  and 
selection,  work  distribution,  promotions,  demotions  and  transfers,  grievance 
handling,  settlements,  voluntary  retirement  schemes  and  so  on.  Participation  of 
employees  in  these  processes  can  safeguard  their  interests  and  motivate  them  to 
work hard for the betterment of self as well as the organization. 
Employee participation in decision-making process although is beneficial. However, there may 
be  some  limits  on  it  to  ensure  that  they  do  not  take  advantage  of  their  liberty  and  right  of 
participation.  There  are  several  ways  through  which  employees  can  participate  in  the  whole 
process.  Some  of  them  are  financial  participation,  participation  through  collective  bargaining, 
participation  at  the  board  level,  participation  through  ownership,  participation  through  work 
councils  and  committees  and  participation  through  suggestion  schemes.  Anyone  of  these  ways 
or processes can be adopted by the management to ensure participation from workers.     
PRESENT SCENARIO:- 
Participative  management  means  the  employees  are  sharing  their  idea  with  chief  level 
management and taking whole responsibility regarding their job. 
In the present scenario employees are allowed to share their idea, feeling with the management. 
This is permitted mostly in corporate sector not private sector. 
In  many  company  this  practice  in  going  that  is  getting  idea  from  the  employee  and 
implementing the best idea. 
The below example clarify this to you. In my current working organization, how it is happening 
see in our corporate website there is separate link for writing the idea. Employee can log-in this 
site by employee no and password and they can feed their idea 
At any time. After that the management evaluates those ideas and the best idea will be selected 
and implemented with help of the person who has given idea periodically. 
The selected person will be awarded and published to all of the employees.  
PARTICIPATIVE MANAGEMENT IN INDIA:-  
In India, the appeal of worker participation has derived from the utopian premises of the Indian 
development  model  with  this  promise  of  rational  planning  and  democratic  processes.  The 
former strengthened the directive role of the government while the latter served as the medium 
of interest group mobilization and mediation. Whatever positive role one may attribute to these, 
in the absence of other structural changes they had, at best, negligible or uncertain consequences 
in terms of favoring worker participation in management. One reason for this is that the cultural 
and  economic  distances  between  management  and  labor,  with  little  to  take  place  were  great, 
with little to take place of weakened traditional authority structures. The government scheme for 
worker  participation,  although  beset  by  weaknesses,  failed  largely  because  the  external 
environment was inhospitable, and one may expect this to continue into the foreseeable future. 
The Indian emergency of 1975 signaled a dramatic change, with a more explicitly top-directed 
scheme.  If  made  permanent,  this  would  move  Indian  practice  closer  to  that  of  the  communist 
countries,  with  an  integrated  structure  of  economic  and  industrial  authority  and  provision  for 
modest but subordinate labor inputs in the decision-making process.                   
CHAPTER 4 
ANALYSIS AND INTERPRETATION   
I.M.T. Pvt.ltd gives utmost importance to participative management. They think that even if the 
participative  management  is  a  time  consuming  process  it  should  be  implemented.  They  are  of 
this  view  because  this  enhances  the  employee-employer  relation  in  the  organization  to  a  great 
extent and helps in retention of the employees.  
The  company  involves  all  the  employees  in  the  process  related  decision  making.  This  involves 
decision  involving  changes  in  attendance  process,  infrastructural  changes,  minor  changes  in 
policy  etc.  The  decisions  which  are  related  to  the  management  are  taken  by  considering  the 
opinion of the head of the department and the top management people. This process takes place 
quarterly.           
TENURE IN THE ORGANIZATION  
GRAPH 1 
20% of the employees have been working in the organization for less than 3years while 75% of 
the employees have been working for 3 to 5 years while only 5% of the employees have been in 
the organization for more than 5 years.         
WORKING ENVIRONMENT 
20% 
75% 
5% 
less than 3 years
3 to 5 years
more than 5 years 
GRAPH 2 
25% of the employees think that the working environment of the organization is excellent while 
65% think it as satisfactory whereas 10% find it dissatisfactory.          
SATISFACTION WITH MANAGEMENT POLICIES 
25% 
65% 
10% 
excellent
satisfactory
dissatisfactory 
GRAPH 3 
60% of the employees are satisfied with management policies of the organization while 40% are 
not satisfied with it.        
60% 
40% 
Yes
No
RECOGNITION FOR SUGGESTIONS   
GRAPH 4 
70%  of  the  employees  agree  that  the  organization  gives  recognition  for  their  suggestions  while 
30% think that their suggestions are not given recognition.        
70% 
30% 
Yes
No
DURATION OF SUGGESTION SCHEMES 
All  the  employees  in  the  organization  replied  that  the  suggestion  schemes  are  held  quarterly 
which in accordance with the information given by the company. 
    Most of the employees here are of the view that the suggestion schemes should be organized 
more frequently.  
INVOLVEMENT OF EMPLOYEES IN DECISION MAKING PROCESS 
All the employees agreed that they are being involved in the decision making process. 
This shows that the company really values the suggestions of the the employees.   
EXTENT OF PARTICIPATION 
The  employees  are  involved  only  in  the  process  related  decisions.  For  e.g.  decisions  regarding 
changes in the attendence systems, infrastructural changes and changes  in the welfare schemes. 
    They  are  not  involved  in  the management  related  decisions  i.e.  those  decisions  involving  top 
management.           
RIGHT TO DECISION MAKING IN ABSENCE OF SUPERIOR 
AUTHORITY  
GRAPH 5 
Only 20% of the employees are allowed to take decisions in absence of the superiors. 
Remaining 80% employees do not have this rights.          
20% 
80% 
Yes
No
SATISFACTION WITH REGARDS TO DECISION MAKING PROCESS  
GRAPH 6 
Only 27% of the employees are satisfied with level till which they are satisfied to take decisions. 
70% of the employees think that they should have more rights of decision making.          
27% 
73% 
Yes
No 
TIMELY IMPLEMENTATION OF SUGGESTIONS  
GRAPH 7 
75%  of  the  employees  responded  that  the  suggestions  are  not  implemented  on  time  while  25% 
employees think that they are implemented on time.          
25% 
75% 
Yes
No 
METHOD OF SELECTION OF SUGGESTIONS  
GRAPH 8 
80%  of  the  employees  think  that  the  method  of  selection  of  suggestion  i.e.  by  voting  is  not 
appropriate. 
20% think that the voting method is appropriate.         
20% 
80% 
Yes
No
TREATMENT TOWARDS EMPLOYEES IN TERMS OF SUGGESTIONS  
GRAPH 9 
60% of the employees think that their suggestions are treated fairly i.e. they are selected if they 
are reasonable. 
40%  of  the  employees  think  that  the  organization  favors  only  the  suggestion  of  some  of  the 
employees.          
60% 
40% 
Yes
No
ABILITY TO CONTRIBUTE TO THE ORGANISATION     
GRAPH 10 
75% of the employees think that they are not able to contribute much to the organization. 
25% of the employees are satisfied with whatever they are able to contribute.          
25% 
75% 
Yes
No
SATISFACTION OF WORKING OF PARTICIPATIVE MANAGEMENT 
GRAPH 11 
75% of the employees are not satisfied with the working of the participative management in the 
organization. 
25% of the employees are satisfied with its working.      
25% 
75% 
Yes
No
SURITY OF WORKING IN THE ORGANIZATION  
GRAPH 12 
85% of the employees are not sure whether they  see themselves working  for a long term in the 
organization. 
10% employees are sure that they would work in the organization. 
5% refused to work as they think that their suggestions are not valued and hence are dissatisfied 
with their jobs.        
10% 
5% 
85% 
Yes
No
Maybe
FINDINGS 
  It is found that most of the workers stay in the organization for a span of only 3 to 5 years 
as the companys motivation techniques are satisfactory. 
  The working environment is also satisfactory. The point of dissatisfaction is that they are 
not being involved in the management related decisions. 
  It is found that the  employees are not involved in the major decisions regarding policies 
and plans of the management. 
  The  company  gives  recognition  to  the  suggestions  of  the  employees.  But  these 
suggestions  are  not  implemented  on  time  which  creates  problems  in  functioning  of  the 
organization. 
  It is found that the suggestions schemes are conducted quarterly. 
  It is found that the employees are involved only  in the process related decisions and not 
in management decisions. 
  It  is  found  that  the  employees  do  not  have  the  right  to  take  decision  in  absence  of  their 
superiors. 
  It is found that the suggestions are selected by voting method in which there are chances 
of manipulations. 
  It  is  found  that  the  suggestions  of  some  employees  are  favored  which  is  quite 
discouraging for other employees. 
  The  employees  feel  that  they  are  not  able  to  contribute  to  the  organization  as  they  are 
given limited rights of participation.        
CHAPTER 5 
CONCLUSION  
Participative management is implemented so that the employees identify themselves with the job 
and  organization  and  this  leads  to  improved  motivation  and  enhanced  task  performance. 
Participation leads to reduced conflicts and stress, more commitment to goals, better acceptance 
of  change,  and  improved  communication.  It  is  not  difficult  to  explain  why  participation 
motivates.  It  is  almost  a  matter  of  commonsense  that  human  beings  will  take  greater  pride  and 
pleasure  in  their  work  if  they  are  allowed  participatory  freedom  in  shaping  the  policies  and 
decisions which affect their work.  
RECOMMENDATIONS  
  The company should provide good motivation techniques to the employees. They should 
be  given  due  recognition  for  their  job.  This  will  help  the  organization  to  retain  its 
employees on a long term basis. 
  Along with the good working facilities and incentives the company should also create an 
environment wherein the employees have more power of decision-making. 
  Even for the major decisions regarding policies and plans of the management employees 
should  be  involved  and  should  be  provided  with  the  right  to  give  suggestions.  This  will 
enhance the employee-employer relation to a great extent. 
  Only  providing  recognition  to  the  Suggestions  are  not  enough  to  make  participative 
management successful. It should be seen that the selected suggestions are implemented 
on time. This will enhance the efficiency of the firm. 
  The  suggestion  schemes  should  more  be  conducted  more  frequently  i.e.  at  least  once  a 
month. This will help the company to take quick decisions. 
  Along  with  the  process  related  decisions  employees  should  also  be  made  part  of 
management related decisions. This will give the employees a sense of security that their 
supervisors  have  faith  on  them  and  thus  will  perform  their  best  to  contribute  to  achieve 
the goals of the company. 
  The  employees  should  also  be  given  the  right  to  take  decisions  in  the  absence  of  their 
superiors.  This  will  boost  the  employee  morale  and  will  give  them  a  sense  of 
responsibility towards the organization. 
  The  suggestions  should  be  selected  by  discussions  and  not  by  voting  as  there  can  be 
manipulations by voting method. 
  There should be no favorable attitude towards a particular employee. This will discourage 
the  other  employees  from  giving  suggestions  and  the  company  may  lose  out  the  best 
suggestion in the process.  
  The employees should be encouraged to participate more actively in the decision-making. 
This  will  give  them  a  sense  of  satisfaction  that  they  are  able  to  contribute  to  the 
organization and will help the company to retain the employees.           
BIBLIOGRAPHY: 
The concepts were referred from: 
  Human Resource Management-Text And Cases  
By K ASWATHAPPA. 
  Human Resource management 
By P SUBBA RAO.   
WEBILIOGRAPHY 
  www.hrm guide.com 
  www.hr-topics.com 
  www.spendloversearch.org.            
ANNEXURES 
QUESTIONNAIRE  
a.  How long have you been working in the organization? 
  Less than 3 years 
  3-5 years 
  More than 5 years  
b.  How do you rate the working environment of the organization? 
  Excellent 
  Satisfactory 
  Dissatisfactory  
c.  Are you satisfied with the management policy of the company? 
  Yes  
  No  
d.  Do you think your suggestions are given recognition? 
  Yes 
  No  
e.  What is the duration of suggestion scheme in your company? 
  Monthly 
  Quarterly 
  Any other  
f.  Are you being involved in the decision making process in the 
organization? 
  Yes  
  No  
g.  If yes, then till what extent? 
  Process related decisions 
  Management related decisions  
h.  Are you provided with the right of major decision making in the 
absence of superior authority? 
  Yes 
  No  
i.  Do you think that the level till which you are authorized to take part in 
decision making satisfactory? 
  Yes  
  No  
j.  Are the suggestions selected and implemented right on time? 
  Yes  
  No  
k.  Do you think the method of suggestions i.e. by voting, appropriate? 
  Yes 
  No  
l.  Do  you  think  the  company  favors  the  suggestions  only  of  some 
employees? 
  Yes 
  No  
m.  Do  you  think  that  you  are  able  to  contribute  to  the  organization   
through your participation in decision making? 
  Yes 
  No  
n.  In all, are you satisfied with the working of participative management 
in the company? 
  Yes 
  No  
o.  Do you see yourself working in the organization for a long term? 
  Yes  
  No 
  Maybe