Abstract

۱٫ Introduction

۲٫ Theoretical framework

۳٫ Research hypotheses

۴٫ Research methodology

۵٫ Analysis and results

۶٫ Conclusions

References

Abstract

Purpose
In the last few years a new management style and paradigm has emerged with the aim of improving employee motivation, commitment and satisfaction through participatory management practices and more democratic organizational structures. Based on this new paradigm, this study examines the consequences of participative decision making for job satisfaction and trust.

Design/methodology/approach
To examine the proposed relationships structural equation modelling was used on a sample of 3,364 employees conducted by the European Foundation for the Improvement of Living and Working Conditions (Eurofound).

Findings
Results confirm that participative decisions positively influence job satisfaction both directly and indirectly by means of employees’ perception of trust.

Originality/value
Based on democratic management style, this study shows how participative decisions and trust can increase job satisfaction.

۱٫ Introduction

Recent years have witnessed the emergence of a new management style based on more democratic structures, in contrast to the traditional management model of hierarchical relationships and control (Chiva, 2014; Huang et al., 2016; Kim, 2002; Laloux, 2014; Tremblay, 2012). The appearance of these democratic models can be explained by the advent of a business conscience that pursues the common good—including employee satisfaction—and understands that employees play a decisive role in the viability of the company. Indeed, research has shown that employees perform better individually when they do not have to follow specific guidelines and when they are not constantly monitored by their superiors (Benoliel and Somech, 2010; Kim, 2002; Swearingen, 2017). This has led to the expansion of a management style concerned with improving the motivation, commitment and satisfaction of employees through participatory practices embedded in democratic organizational structures (Guest, 2017; Salas-Vallina et al., 2020).

These democratic companies are distinguished by their consideration of workers not as a “stakeholder”, but as a “constituent part” of the organization (Yukl and Becker, 2006). In other words, employees are recognized as trustworthy and have a high level of decision-making power. These companies apply a system of participatory corporate governance, in which employees have the capacity to influence organizational decisions and levels of control (Tannenbaum, 1968). This governance system moves away from management approaches of control and submission at work to focus on managerial trust in employees (Chiva, 2014). Hence, the presence of trust is conceived as a core component in organizations applying a participatory management (Davis, 2001; Harrington, 2017).