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Participative Management: A Model for Governance of Territorial Communities

Principles of participative management have been commonly used in the contemporary management. This involves decentralization and democratization of management, various forms of employees’ engagement in the organization’s management. The participative management ideas, if practiced, can offer the key to building an effective management system and motivating business entities to a complex organization, and it can be a feasible model for organization of governance within the local self-governance system.   
Participative management is based on recognition of mutual interests of all the members of an organization, thus integrating these interests and increasing the employees’ concern with labor results. It can exist in various forms, of which the main ones are income-sharing, profit-sharing, equity-sharing and participation in management. Each form of participative management can be implemented separately, but the highest effect can result from their combination (the synergy effect). 
Participative management has already been widely used by many business organizations in Europe and elsewhere. Participative management, therefore, is one of the advanced management methods involves decentralization and democratization of management, participation of employees in management, effective utilization of human resources for their development and the development of the organization’s system. Participative management can change and reinforce the employee’s motivation system. Yet, the participation does not diminish the rights and responsibilities of managers.   
Principles of participative management are more and more often used in public governance as a model for governance within the local self-governance system. However, practical use of participative management tools still requires detailed theoretical studies. 
Because participative management principles and tools have only been at introductory phase now, they require theoretical elaborations and practical experiences especially. High effectiveness of participative management can be achieved only in established and capable territorial communities, when the collective intellect and collective interest of all the members of a territorial community is engaged in governance processes.