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Editor’s Note: This article has been edited on Aug. 6, 2024 to include new data and information.
Participative leadership is a leadership style that involves employee feedback and ideas in the decision-making process. It requires an inclusive mindset, good communication skills and the ability — and inclination — to share power.
Sometimes called the democratic leadership style, participative leadership is one of three leadership climates categorized by social psychologist Kurt Lewin in the 1930s. In general, participative leaders delegate responsibilities and provide feedback that fosters professional growth. They ensure transparency so that all group members can see how their role fits into the bigger picture.
Once a leadership staple of many organizations, participative leadership has suffered changes under the rise of the remote and hybrid workplace. Here’s everything you need to know about the current state of participative leadership style — and how you can apply it today.
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What Is Participative Leadership Theory?
Participative leadership, also called democratic leadership, encourages collaboration by promoting accountability in individual roles and coming together to find solutions, rather than pointing fingers when problems arise. When asked about participative leadership, Scott Hirsch, business consultant and previously CTO at TalentMarketplace, likened it to a democracy.
“Every group member is able to have a say in decision-making,” he said, adding that the difference between participative and democratic leadership is that the group as a whole is the ultimate decision-maker. “There is no leader because everyone is on the same level.”
Participative leadership helps build trust by demonstrating the importance and value of group members’ opinions on important matters, and it significantly affects organizations by fostering a collaborative and innovative environment. In a participative workplace, success becomes possible through creativity, innovation, problem-solving abilities, collaborative spirit and open mindsets, which are all necessary for any company looking at growth opportunities.
Related Article: How to Identify Your Leadership Style
What Is a Participative Leader?
A participative leader takes into account the perspective of everyone on the team and encourages employees to be heavily involved in joint decision-making.
"Being a participative leader means that you involve your entire company in how decisions are made," said Hays Bailey, founder and CEO of SafetyCulture’s SHEQSY. "You should be providing the necessary information that is influential in the decision-making process and encouraging everyone to provide their input."
Participative leadership style also places importance on keeping group members informed and aware of the value of their contributions. If applied properly, it encourages a free flow of ideas, improves morale and boosts employee retention.
Research found that leaders who rate high in self-awareness tend to gravitate toward participative leadership. And the more similar the leaders and group members are, the more likely they will utilize participative leadership theory.
Characteristics of a Participative Leader
Participative leaders, often known as democratic leaders, involve team members in decision-making processes. This leadership style is based on collaboration and active team member involvement.
Some key characteristics of a participative leader include:
- Good listener: They're adept at listening to the opinions and concerns of others.
- Empathetic: They have the ability to understand and relate to the feelings and perspectives of their team members.
- Flexible: They are willing to change direction based on input from group members.
- Transparent: They are clear about their decisions, the reasons behind them and the processes they went through to arrive at them.
- Team-oriented: They prioritize the wellbeing and success of the team over personal glory or achievement.
When Is Participative Decision-Making Most Effective?
Participative leadership thrives in environments that encourage inclusivity and personal and professional growth of team members. Companies that value and encourage employees to voice their opinions and hone their skills tend to develop more confident workers who come up with better ideas. Group members feel a sense of ownership and responsibility, leading to higher commitment levels. Research consistently shows that participative leadership affects organizations positively by enhancing employee engagement and driving better decision-making processes.
In industries or projects that require a diverse set of skills and knowledge, the participative leadership style can be invaluable. By involving various team members in decision-making processes, organizations can tap into a wide range of expertise and insights, leading to more comprehensive and well-rounded solutions.
Related Article: Hybrid Work Leadership Is Hard. Some Tips to Get It Right
What Are the Benefits of Participative Leadership?
Numerous studies show that participative leadership styles have an overall positive effect on employee wellbeing and organizational performance.
More Committed Employees
Participative leadership makes group members feel psychologically empowered and boosts employee morale. Employees are more involved in decision-making processes and, as such, have a higher level of job satisfaction and commitment to the organization. These committed employees also tend to have a higher sense of emotional trust in their leaders.
More Helpful Employees
Participative leadership promotes helpfulness among employees at work, research found. Specifically, it increases change-oriented organizational citizenship behaviors — the things employees do to help the company that aren't part of their formal job description. For instance, helping co-workers with work tasks when they're busy, mentoring new employees or making sure to keep their workspaces and communal areas tidy.
More Innovative Employees
One study found that participative leadership leads to an increase in innovation and creative solutions among group members. It also found that employees with a higher degree of change readiness were more committed to change and saw higher levels of innovation under a participative style.
More Productive Employees
Numerous studies show that participative leadership has a positive impact on employee productivity and job performance. It also significantly improves organizational performance as a whole.
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Participative Leadership Pitfalls
Participative leadership is becoming an important initiative for today's managers, and it's undoubtedly one of the key leadership styles that can't be ignored. Still, participative leadership does not work with all groups or in all environments.
Doesn't Work in Fast-Paced Environments
This democratic leadership style doesn't work in a fast-paced environment where tasks are "need-it-yesterday," said Steve Anevski, co-founder and CEO of Upshift. "These are mostly larger organizations that do not have time for discussions with everybody and need work to be completed as soon as possible."
Leaders in this type of environment should remember that the participative nature of remote work democratizes operations, which can, in turn, make up for the company's lack of nimbleness in that regard.
Can Lead to Indecisiveness
There's a difference between participation and indecisiveness. Indecision can prove costly, as valuable opportunities can be missed. To implement a participative leadership style successfully, in a remote work setting or an in-office situation, it is fundamental to first designate and empower decision-makers who will drive the broader team's participation and prevent the process from becoming a free-for-all.
Poses Challenges for Large Groups
The more people involved in decision-making, the more challenges will arise. Not only does more people mean more time to come to a decision, but it also means a higher likelihood of conflict. Differences in opinion, if not managed correctly, can create divisions within the team. Participative leaders in this position will need strong conflict resolution skills to ensure the collaborative environment isn't disrupted.
Can Increase Employee Stress
Unlike many other leadership styles, participative leadership works by involving employees in important organizational decisions. However, studies show that an over-reliance on participative decision-making — which increases work challenges and responsibilities for team members — can lead to increased stress.
Related Article: The 3 Ingredients Behind a More Effective Leadership Team
Participative Leadership in a Remote Work Environment
The rise of remote work has brought a lot of new challenges to those who want to use the participative or democratic leadership style. Still, there are ways to apply it successfully in a remote setting to strengthen the company's culture and boost growth.
Hear Your Team's Concerns
Participative leaders listen to their team's thoughts and concerns, and factor them into their decisions. They might also discuss participative leadership with employees and compare its impacts to other leadership styles.
"Leaders who listen often find that when decisions are reached by general consensus, employees will accept policies more quickly, reducing the amount of pushback that new company policies will face and expediting the process of implementing new ideas," said Tyson Stevens, president of EDSmart.
Such a leadership style also provides group members with a more personal stake in the success of the company by enabling them to participate in the process, which promotes greater support of corporate policies and decisions.
Create Virtual Spaces for Thought Sharing
One of the drawbacks of the remote office is that employees can't "pop by" a manager's desk for a frank discussion; this creates communication silos.
To prevent or dismantle silos, Brad Touesnard, founder and CEO of SpinupWP, suggests companies create spaces where participation is expected and encouraged. “This,” he said, “encourages creativity and innovation, and can be accomplished by creating virtual spaces where everybody is encouraged to contribute, and all voices are heard."
Encourage Accountability
Since all group members are expected to contribute to the decision-making process, employees in a participative work environment tend to feel more responsible and accountable for the outcome of a project. This not only reduces finger-pointing and dissonances between team members, it also translates into happier and more productive teams than those in top-down environments.
