The Relationship between Participative Management and Employees Motivation

International Journal of Basic Sciences & Applied Research. Vol., 4 (4), 230-234, 2015 Available online at http://www.isicenter.org ISSN 2147-3749 2015 The Relationship between Participative Management and Employees Motivation Rouhollah Naderan, Parviz Saeidi * Department of Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran * Corresponding Author Email: dr.parvizsaeedi@yahoo.com Abstract This research aimed to investigate the relationship between participative management and employees motivation in employees of Mehre-Emam Reza fund of Golestan province, Iran. Participative management is an integrated systematic process of an organization which includes participation in goal setting, participation in decisionmaking, participation in solving problems and participation in the transformation to achieve organizational goals professionalism. Participative management and employees motivation are the most effective strategies for survival in today's world and managers help the effectiveness and productivity of their organizations by strengthening participative management and employees motivation. This research was a descriptive-monitoring survey and the method of data collection component was solidarity. The population of this study consisted of all employees of Mehre-Emam Reza fund, Golestan province, Iran that was 130 individuals. The samples of this study were 97 individuals that were selected by simple random sampling and the measuring tool was standard questionnaire. The results showed that there was a positive and significant relationship among all the elements of participative management and employees motivation. Keywords: Participative management, Employees motivation, Participation in goal setting, Participation in decision-making. Introduction Participation has long been linked with human life and has been the foundation of social life of ancient and modern civilizations. Participation is the key of human development and social and economic developments were the main element of countries (Ebrahimi, 1993). Participative management has been generalized in the beginning of a new classic. This approach seeks to create harmony among employees to achieve organizational goals through participation in decision-making areas and it was believed that, when employees were involved in the decision making process, supported the decision and this led to increase of efficiency. And also, the involvements of employees in the process of planning increased the commitment and motivation to further goals and provide the objectives improve morale and job satisfaction and decreased the attachment to the manager. The researches of Koch and French (1960) and Kertelvin (1952) confirmed this claim (Seyed-Ameri, 2009). Participative management is a mechanism through which the responsibility given to the groups or individuals (Tousi, 1999). Participative management of human resources is one of the richest sources of the organization that developed the power of thought, creativity, innovation, commitment and responsibility, on the other hand, when a person faced with the different situations or events presented different reactions with others (Bin & varz 2000). Participative management is a management style characterized by the use of group decision-making method. This style is quite the opposite of autonomous management. The participative style is often believed that human beings are emotional, so they work well sometimes it is also called democratic management (Dale, 1999). Participative management is a model of decision and definiteness of the four main characters, these four characteristics are: empathy, sympathy, harmony between management and employees, joint intervention in the affairs 230

of management and employees, clarify goals and develop a culture of shared responsibility, decision-making (Clunk, 2002). Participative management was defined as "the creation of an environmental management system that all employees, customers and contractors participate in a process of decision-making mechanism for resolving issues and problems with the management (Sheykh-mohamadi & Tolitz-ade, 2001). Participation is an informed, active, free and responsible activity that is necessary for the stability and security of a society. This motion is that people feel belonging to the community and in fact they are the main drivers of their own society. In fact, participation is the key to make lasting contributions (Rezaei & Frouzande, 2001). The oldest definition of the proposed partnership was "a double bond, constructive and beneficial, between two or more than two." This definition emphasized the link between two people who both are opened and the man in the light of that were grown and took advantage of each other. The double bond led to information, knowledge, understanding and thinking of both the graft to spread and both parties benefit from the manufacturer to obtain and grew mental and emotional capabilities (Tousi, 2004). In definition of participation, Simon said: All measures of influence and responsibility to participate in the management staff in the decision-making process through representatives. Regarding to the above definitions on participation can be said: Participation is a voluntary and emotional involvement of a person in a position of a team and an organization which would motivate the individual to reach the target group and causes the individual to be responsible partner. Theoretical Principles Given the historical perspective and review of assumptions, policies and expectations at every point in space, we can declare that participation in the labor organization led to increase of incentive. By examining the historical theories of motivation from the traditional model to human resources managers model, we can see over time and the organizations also found that increasing the participation of members of the organization can Increase motivation, creativity and productivity of employees in the organization. Due to this significant, one of the factors increasing the motivation among employees was participative management style, which is currently paid more attention in today organizations. Much research revealed that the success of many organizations led to increase of employees motivation through the implementation of a participatory management style that nurture the creativity and the ability of employees also regressed and ultimately increased the productivity of the organization (Iran-nejad & Sasangahr, 1996) Participative management required trust and liabilities of employees. In this context it is important that employees understand manager s talent to improve the bounce, or relay (Lawler, 2002). In the process of management, employees shared three things: responsibility, authority and accountability so accordingly, this type of communication was from top to bottom, but there was a horizontal relationship between all people who accountable towards success. When people worked through participation than individuals, did a better operational both can be used to allocate more time without fatigue. In addition, participative management had other benefits which included: -Increasing productivity -Enhancing employees morale -Enhancing the job satisfaction -Adapting quickly with changing - Increasing trust between individuals -Better Communication -Dividing the huge burden of work among team members and manager -Decreasing finding people s problems -Better decisions with complex works, managers were no aware of all work. Hence, the participative process created an opportunity to those who were most aware of their participation in decision-making, it led to make better decisions. -The decisions taken by participation were more rapid because duplication was avoided and individuals had better overall picture of the work. The commitment to implement those decisions increased as to make the contribution (Robins, 2000). History of research Table 1 summarized the main findings of the research. 231

Table 1. Summary of research s findings. Researcher Date of research Subject of research Results Kanti and Sharma Davaraje and Ratnam 2014 2014 Mokona 2012 Zia et al 2012 Louise 2009 Stone et al 2007 Major emphasis on preparing organizations for the implementation of participative management. The relationship between participative style of management and student satisfaction. Effective participative management seeks to answer the question whether the effect of participative management is the level of confidence of shareholders? Participative management and job satisfaction Effects on ability and skills of employees effectiveness The impact of cultural values on the acceptance and effectiveness of policies and practices of human resource management Participative management on organizational performance, organizational development led to increase productivity and job satisfaction Participative management in educational organizations also ensures the quality of education and increase productivity.. Using participatory management and its component tasks and responsibilities of shareholders to increase the effectiveness and level of reliability. Participative management to improve the satisfaction of faculty administrators should replace the traditional structures Increasing the skills and abilities of employees in the organization has a considerable impact on the employees effectiveness. The positive impact of cultural values on human resources management policies and employees effectiveness. Bessell et al 2002 Understanding the motivation tool for managers Motivation needs to increase employees motivation and improve their performance and increase their efficiency. The results of present research revealed that the application of participative management in the organization were as a reinforcing agent motivation among employees. But its success depended on other factors such as climate, human relations governing the organization and the maturity of the organization's culture. The results of the study of these issues were expressed in different organizations with different results. For this reason, these researches seek to answer the question whether it would be a participative management style management approach to improve employee motivation at any range. Methodology The method employed in the present study was descriptive-monitoring method. This study was corelational research which conducted in field study. The study population included 130 individuals, including employees of Mehre- Emam Reza fund in Golestan province, Iran. The study sample consisted of 97 participants. The sampling method which was used in this study was simple random sampling. In order to improve the reliability of the study, questionnaires were sent to 105 individuals and upon receipt of the questionnaire, some of which were removed because they were incomplete. Finally, 97 questionnaires were approved for continuing research. For gathering information on the study of the relationship between participative management and employees motivation components of the standardized questionnaire was used. Results Data was analyzed using factor analysis and then, the basic model was surveyed. Finally, study hypotheses were tested. Hypotheses were analyzed using structural equation modeling. In this study, the software SPSS and LISREL 232

were used. Data was determined using descriptive statistics to the measures of central tendency and demographic criteria. The results of descriptive statistics are shown in the table below. Table 2. Descriptive statistics of variables. Study variables Society Views The mean SD Variance Static value Min Max Average The error Participation in goal setting 97 1 4 3.39 40 0.0653 1.0329 1.067 Participation in decision-making 97 1 5 3.3850 0.0716 1.1329 1.284 Participation in problem solving 97 1 5 3.4390 0.0672 1.0630 1.130 Participation in the transformation 97 1 5 3.8900 0.0654 1.03401 1.069 Motivating Employees 97 1 4 3.5936 0.05747 0.90866 0.826 LISREL software was used to test the validity of theoretical models and coefficients effects of structural equation modeling. Structural equation modeling is a multivariate analysis technique and is very general, powerful family of regression in other word is a "General linear model" that allow researchers to set equations as the regression test at the same time so, in factor analysis this question must ensure that the available data can be used for analysis or not? The purpose of this method was to calculate the value of KMO. The results indicated the suitability of data for factor analysis and correlation between sampling adequacies. Therefore, it can be a factor for analysis. The number KMO (greater than 7.0) and a significant number Bartlett test (sig < 0.05) can be said that the data was suitable for the factor analysis of the situation required. To estimate the model, maximum likelihood ratio chi-square test was used, to determine the model of two-degree of freedom ( x2 ), the comparative fit index (CFI), fitness index (GFI), adjusted df index of fitness index (AGFI ), soft indicators of fitness index (NFI), soft unsettled fitness index (NNFI), root mean square error of approximation (RMSEA) were used. In Table 3 the direct and significant correlation coefficients model assumptions are proposed. The direct and indirect relationships between variables are presented in Table 4 in the final model of research. Table 3. Results of the direct relationship between significant coefficients and assumptions. Path Sign. Path correlation Sig. Employees motivation to participation in goal setting EM--- PG 0.17 3.02 Employees motivation to participate in decision-making EM --- PD 0.27 4.40 Employees Motivation to participate in solving problems EM --- PP 0.19 3.27 Employees Motivation to participate in change EM --- PT 0.41 7.46 Table 4. The relationship between the variables in the research mode. Type of relationship Direct relationship indirect relationship Total relationship EM on PG EM on PD EM on PP EM on PT 0.17 0.27 0.19 0.41 0.17 0.27 0.19 0.41 Regarding to Table 3, it can be said that path coefficient was the relationship between participation in goal setting and motivation of 0.17 employees. T-statistic was reached 3.02 for the coefficient which was higher than the threshold value 1.96. On the other hand, there was a positive and significant relationship between participation in goal setting and employees motivation. As indicated in Table 3, the path coefficient between participation in decision-making and employees motivation was 0.27. T-statistic was 4.04 which were greater than the threshold value 1.96. Given the above, it can be concluded from participation in decision-making and employees motivation that there was a positive and significant relationship between them. As shown in Table 3, the fit model indicated the path coefficient between participation in problem solving and employees motivation was 0.19. Since the value of T for this factor was 3.27, it can be concluded that there was a positive and significant relationship between participation in problem solving and employees motivation. As seen in Table 3, the path coefficient for the relationship between participation and motivation to change the number of employees which was obtained 0.41. T-statistic for this coefficient was 7.46. Hence, the fourth hypothesis of this study was also confirmed. In other words, there was a positive and significant relationship between the change in the participation and employees motivation. 233

Conclusion Based on the results of this study, four hypotheses can be easily found in participative management style and its components were all directly and significantly related to employees motivation also, associated with the implementation of this style can be improved the employees motivation. Increasing the employees motivation had positive impact for the organizations and can be served as an incentive to increase the productivity of the organization. This style was the key of success in many international organizations and institutions. The findings were quite consistent and in line with the results of other researchers such as Khoshkhou-norouzani (2012), Bahadori (2012), Heidarimousa-narenji (2011), Nourbakhsh (1997), Saatchi (1991), Davaraje and Ratnam (2014), Kanti and Sharma (2014) and Argris(1998). Generally, participative management is one of the indicators of organizational development, and regarding to the results of this study and other research in this area, in the monetary and financial institutions such as banks and insurance agencies offering were similar to services and lightweight alternative of traditional styles and some of the common methods. This style of management and deposit liabilities to employees in addition to sharing and exchange of ideas and freedom of thought and freedom of thought had improved the organizational climate, employees growth and dynamics of these organizations. This style allowed the subtle use of information resources to provide managers make better decisions. Reference Argyris C, 1998. The emperor s new clothes. Harvard Business Review. 76(3): 98-105. Bahadori MK, Babayi M, Mehrabian F, 2012. Prioritizing factors affecting job motivation of the employees of a military base on analytical hierarchy process (AHP). Journal of military medicine.14(4): 236-243. Bean Jams A, Vars Gordon F, 2000. Integrative Curriculum in Standards. Based world, Eric. No. 4416. Bessell I, Dicks B, Wysocki A, Kepner K, 2002. Understanding motivation between individual and psychological conceptions. American journal of Community. Cloke K, Goldsmith J, 2002. The end of management and the rise of organizational democracy. San Francisco: Jossey Bass. Dale BG,TQM, 1999. What is the Research Challenge? Amsterdam, Elsevier Science, Publishers BV. Foruzande K, Rezaei M, 2001. Employees participation in all organizational problems. Logistics magazine. 34: 1-4. Heydarimousa-narenji H, Heydarimousa-narenji M, 2011. The relationship between participative management and employees motivation in tax Organization of Kermanshah. The Seventh Conference on Human Resource Development. Tehran, Center for Productivity and Human Resources. Iran-nejad M, Sasangahr P, 2000. Organization and management theory and practice. Tehran: Iranian banking institution. Kanti T, Sharma SH, 2014. Emphasis on basic preparation for participative management in organization : A conceptual study. International Journal of Entrepreneurship & Business Environment Perspectives. 3(1). Khoshkhou-norouzani R, Nikpour-ghanvati L, 2012. Sociological study of factors influencing employees motivation of Fars new cement company. Science Magazine - specialized technologies, cement. 56: 5-14. Lawler E, Finegold D, Benson G, Conger J, 2002.Corporate boards: keys to effectiveness, organizational dynamics. 30(4):301-324 Mokoena S, Kamla-Raj, SocSci j, 2012. Effective participative management: Does It affect trust levels of stakeholders in schools? Department of Teacher Education, University of South Africa, South Africa 0003. 30(1): 43-53. Nourbakhsh M, 1997. Checking job motivation in physical education faculty members of the country, according to Herzberg's theory. Unpublished PhD thesis. Tehran University faculty of Physical education.85-95. Robins S, 2000. Organizational behavior management.tehran: Center for Public Management. Saatchi M, 1991. Employees attitudes on the determinants of job satisfaction and turnover. Management Studies. 1(4): 24-39. Seyed-ameri MH, 2009. Relationship between the components of participative management as an effective way to motivate employees and departments of physical education in West Azarbaijan province. Journal of Sport Management (move). (1): 5-17. Sheykh-mohamadi MR, 2001. Participative management based on the recommendations. Tehran: Iran institute. Thevarajah K, Ratnam E, 2014. Examining the relationship between management style and student satisfaction. European journal of business and management. 6(16). Tousi MA, 1999. Public participation. Journal - management process research and development. 13(1): 53-59. 234