Participative management and job satisfaction: lessons for management leadership.(Statistical Data Included)

Introduction

One of the leading challenges in public management has been implementing effective human capital strategies to enhance government performance and accountability. As a result of the emphasis on performance and results-oriented government services, researchers in public administration and government agencies have stressed effective human resources management strategies such as job satisfaction, team empowerment, participative management, and strategic planning (Noer 1993; deLeon and Taher 1996; DeSantis and Durst 1996; Rago 1996; Ting 1996; MSPB 1998a, b; GAO 1999).

For years, researchers (Brayfield and Crockett 1955; Petty, McGee, and Cavender 1984; Iaffaldano and Muchinsky 1985) have disputed the extent to which increased job satisfaction leads to improved performance. Iaffaldano and Muchinsky (1985) conclude that the relationship has been only weakly manifested. Brayfield and Crockett (1955) conclude there is no evidence of a relationship between job satisfaction and performance. On the other hand, based on a meta-analysis, Petty, McGee, and Cavender (1984) demonstrate a strong relationship between job satisfaction and performance. Despite researchers' disagreement about the relationship between job satisfaction and productivity (Brayfield and Crockett 1955; Petty, McGee, and Cavender, 1984; Iaffaldano and Muchinsky 1985), studies reveal that satisfied employees are more likely to have low absenteeism and turnover (Carsten and Spector 1987; Locke 1976; Tett and Meyer 1993; Hackman and Oldham 1975; Farrell and Stamm 1988; Brooke and Price 1989; Barling, Wade, Fullagar 1990; Kemery et al. 1985; Kemery, Mossholder, and Bedeian 1987; Pierce, Rubenfeld, Morgan 1991; Eby et al. 1999).

With respect to organizational performance and individual productivity, absenteeism and retention are significant targets for current human resource management in both the private and public sectors (Carsten and Spector 1987; Locke 1976; Eby et al. 1999). Specifically, several researchers (Eby et al. 1999; Pierce, Rubenfeld, Morgan 1991; Thomas and Velthouse 1990) have argued that enhancing individuals' perceptions of empowerment and fair treatment may intensify affective reactions toward work and, ultimately, reduce rates of turnover and absenteeism. Given the significant cost of employee absenteeism and turnover for organizational performance, scholars must clearly identify variables such as empowerment, participative management, quality of work life, and the role of managers, that affect job satisfaction in government agencies (Bruce and Blackburn 1992; Rainey 1997).

Several researchers have found that strategic planning has been widely implemented in federal, (1) state, and local governments (Berman and West 1998; Berry and Wechsler 1995). Berman and West (1998) find that strategic planning is the most widely used productivity-improvement strategy in both municipalities and nonprofit organizations. Although there is considerable research showing that participative management positively affects employees' job satisfaction (Drucker 1954, 1974; Likert 1967; Daley 1986; Bernstein 1993), little empirical research has been conducted on the relationship between the participative management of strategic planning processes and employees' job satisfaction in the public sector. Government agencies' widespread use of strategic planning raises a research question regarding the relationship between employees' participation in strategic planning processes and job satisfaction in the public sector.

The purpose of this study is to explore the relationship between participatory management in the context of the strategic planning and job satisfaction in local government agencies. This study extends research on the organizational contexts of strategic planning, such as managers' use of a participative management style, employees' participation in strategic planning, supervisors' skill in effective communications, and their consequences for job satisfaction. Using employee survey data collected by Clark County in Nevada, an empirical analysis is conducted to examine these relationships in local government agencies.

This article begins with a review of the literature on participative management and job satisfaction in both the private and public sectors. Next, it discusses issues and concerns in a participative strategic planning process, supervisory communications, and job satisfaction. Three hypotheses tested in this study are presented at the end of the literature review. The major findings demonstrate the positive relationship between participative management and job satisfaction. The final section of the article also discusses lessons and implications of the findings for management leadership and public management.

Literature Review and Hypotheses

Participative Management and Job Satisfaction

Historically, management theory (Argyris 1957; Bennis 1966; Herzberg 1966, 1968; Likert 1967; Maslow 1954) has emphasized the importance of coordinating the organization-human relationship to enhance productivity and develop human capital. Focusing on human motivation and its impact on job satisfaction and productivity, scholars have conducted research on participative management and empowerment (Drucker 1954, 1974; Likert 1967; Spreitzer, Kizilos, and Nason 1997; Ouchi 1981; Pascale and Athos 1981). Participation is a process in which influence is shared among individuals who are otherwise hierarchical unequals (Locke and Schweiger 1979; Wagner 1994). Participatory management practices balance the involvement of managers and their subordinates in information-processing, decision-making, or problem-solving endeavors (Wagner 1994).

In line with the research on participative management, participative decision making has been emphasized in relation to job satisfaction (Cotton et al. 1988; Macy, Peterson, and Norton 1989). Several studies have demonstrated that participative decision making can be beneficial to workers' mental health and job satisfaction (Spector 1986; Miller and Monge 1986; Fisher 1989). Daniels and Bailey (1999), however, argue the evidence regarding the impact of participative decision making on job satisfaction has not been consistent. The relationship between participative decision making and job satisfaction could be nonlinear and contingent on individual and situational variables (Cotton 1993, 1995; Daniels and Guppy 1994).

On the other hand, Spreitzer, Kizilos, and Nason (1997) argue that the notion of empowerment is derived from theories of participative management and employee involvement. According to these authors, the basic assumption of participative management is that sharing managers' decision-making power with employees will enhance performance and work satisfaction. They maintain that the main issues of the quality-of-life movement are enhancing employee satisfaction, improving intrinsic motivation, and helping employees to feel good about their work and jobs. Therefore, job satisfaction was one of the earliest anticipated outcomes of empowerment.

Many managers, union leaders, and scholars share the belief that participative management practices have substantial positive effects on performance and satisfaction at work (Jackson 1983; Hoerr 1989; Peterson and Hillkirk 1991; Bluestone and Bluestone 1992; Bemstein 1993). In recent research regarding public-service motivation, Brewer, Selden, and Facer (2000) suggest that policy makers and public managers should consider employees in decision-making processes as one of the strategies for advancing public-service motivation. Thus, the following hypothesis is examined in this study:

 
   Hypothesis 1: Employees who believe that managers in their units use a 
   participative management style are more likely to express higher levels of 
   satisfaction with their jobs. 

Participative Strategic Planning Process and Job Satisfaction

Based on a survey of state agencies, Berry and Wechsler (1995) find that 60 percent of agencies reported engaging in some form of strategic planning. According to Berman and West (1998), strategic planning is the most widely used productivity improvement strategy in both municipalities and nonprofit organizations. (2) Berry and Wechsler…