Participative Management Style

790 Words4 Pages
The intensive global competition and higher customer expectations as well as rapid changes challenge companies to become more innovative. Companies have to differentiate themselves to make sure they can maintain a favorable position and to keep up with the changes. One way to do this is by applying an alternative management style. Some widely practiced management styles include the autocratic style, the consultative form and the persuasive style. The participative management style, or democratic style, is less practiced as it frightens companies to give up control and as it is often perceived as utopian and naïve (Fisher, 2005). Previous research indicated that management styles have influence on the effectiveness and performance of the…show more content…
A manufacturing company is engaged in the process of manufacturing: “the process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.” (BusinessDictionary, 2015). Thus, it is a company that produces goods to sell them to consumers or other manufacturing companies. The research will focus on manufacturing companies to make the research more concise and specific and more consistent with Semco. The purpose of this research is to explore what happens when leaders relinquish control and to investigate the benefits and disadvantages of participative management concerning employee motivation. The study should provide an answer to the research question: What impact does participative management have on employee motivation in manufacturing…show more content…
Case description of Semco The research project will be based on the Semco case. Semco is a Brazilian organization that makes industrial machinery and offers a wide varied range of products and services. Antonio Curt Semler, the founder and chief executive of Semco, has run his company following the traditional business model. This means that there was a hierarchical structure and that the company made use of rules, policies and a top management team to regulate, steer and organize all employees and organizational actions to make sure the company kept functioning in an ordered and structured manner. (Fisher, 2005) Curt Semler turned the company over to his son named Ricardo Semler. As a result of the acquisition, the company grew and diversified, nevertheless employee relations worsened. Semco had become an unhappy place to work; employees were not content with their job and the top management was not pleased with the

More about Participative Management Style

Open Document