The effect of participative management on organizational performance: the case of Taiwan

The aim of this study is to investigate the impact of participative management on the behaviour of employees and the financial effectiveness of the enterprise. The analytical data are based on the survey of 308 Taiwan enterprises. Multiple regression results show that both suggestion system and labo...

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Bibliographic Details
Published in:International journal of human resource management 1997, Vol.8 (5), p.677-689
Main Author: Huang, Tung-Chun
Format: Article
Language:English
Subjects:
Decision making
Economic performance
Employee Participation
Human resources
Job Satisfaction
Management techniques
Organizational behaviour
Organizational Effectiveness
Organizational Performance
Participative Management
Personnel management
Taiwan
Worker Participation
Workers' participation
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Summary:The aim of this study is to investigate the impact of participative management on the behaviour of employees and the financial effectiveness of the enterprise. The analytical data are based on the survey of 308 Taiwan enterprises. Multiple regression results show that both suggestion system and labour-management committee have a positive impact on employees' behaviour in terms of turnover and absenteeism rates. Likewise, the quality control circle (QCC) and profit sharing have a positive impact on organizational effectiveness as seen in profit and revenue growth rates. However, employee stock-ownership plans and grievance-handling systems have negative effects on both performance indicators - employee behaviour and organizational effectiveness. The practical implications are also discussed.
ISSN:0958-5192
1466-4399
DOI:10.1080/095851997341450