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Propensity for participative decision making in Latin America: Mexico and Peru

Increased subordinate participation in management decisions has been a recognized trend in developed Western organizations in recent decades. This study examines a manager's propensity for engaging in participative decision making (PPDM)in two emerging Latin American nations, Mexico and Peru. Although these two nations possess some degree of cultural similarity, two key differences were identified. First, Mexican managers who believed that PDM reduces a manager's power base were also likely than others to see a positive link between PDM and organizational effectiveness. In contrast, Peruvian managers who believed that PDM reduces a manager's power base were less likely than others to see a positive link between PDM and organizational effectiveness. Second, Mexican managers operating in participative organizational cultures were less committed than other managers to participation as a management philosophy and to their organizations. In contrast, Peruvian managers operating in participative organizational cultures were more committed than other managers to participation and to their organizations. Conclusions and directions for future research are also presented.