1.2. Factors

Factors that define a shared and participatory management model

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Many factors influence a shared and participatory management model. The following are some of the most noteworthy due to their relevance:

1. Change in the entire organisation’s culture, including the owner.

If we start from a company with a traditional functional organisation, in order to move towards organisational models of shared and participatory management, we need a radical change in the way that the owner, the managers and the workers themselves think. Everyone must participate and be part of a cultural change in which everyone counts, a model in which self-interest has no place, and in which the owner must be generous and workers must be committed to the organisation.

2. Transformation of management, from director to leader

One of the main mechanisms for change and the model is the company’s management. It is necessary for it to go from being a hierarchical management, to a leader-coordinator-facilitator of change and of the organisation’s direction. The management needs to empower workers and provide them with tools, knowledge and means to take advantage of their strengths and knowledge and therefore improve the productivity and competitiveness of the organisation.

3. Joint project, company and workers

There must be a joint project between the workers and the company, so that the workers identify with the organisation. It is best if the company’s mission, vision and values are the same as those of the people who form part of it and that the strategy is defined by all workers.

4. Shared and joint values, company and people

The values of the company are defined by the people who are a part of it and it is necessary for them to fit into the daily dynamics of the organisation, with the aim of generating greater cohesion.

5. Transparent and fluid information

One of the pillars to advance towards a new organisational model is vertical and horizontal communication… It is necessary to create fluid communication spaces that generate confidence at the heart of the organisation. It is essential to understand what each person that belongs to the organisation needs to know at each moment, which is why communication has to be complete.

The company and the owner must be transparent and provide the people who make up the organisation with detailed information about the company (economic information, orders, future projects, deadlines) and the information must go in both directions.

6. Self-managed and multidisciplinary teams

In the 1980s and 1990s, the popularity of self-managed teams increased in Europe as a tool widely used by companies with active participative management.

Self-managed teams can be defined as those groups of people who are led, organised and managed by the members of the group themselves to achieve a joint objective, specified by the organisation, and who have the capacity to control, adapt and improve their own performance.

Self-managed teams contribute to cost savings and increased productivity in organisations by directly impacting on the group’s effectiveness. Those companies where decision making is encouraged separately from employees, self-managed teams have a higher rate of achievement in their objectives.

Many of these teams are multidisciplinary, that is, they are made up of workers specialised in different areas, with individual responsibilities for the fulfilment of a joint team objective.

7. Employee participation in company management

It is the cornerstone of the whole model. The people who make up the organisation actively participate in the company’s decisions and in its daily management.

All people contribute their knowledge and skills in one way or another, through multidisciplinary teams that help improve the organisation’s efficiency, increasing the competitiveness of the company.

The company and the employees must be clearly client-oriented. The self-managed teams must have autonomy to set objectives and challenges, plan activities…in short, to establish the group’s guidelines that allow them to reach their productivity levels and their goals, aligned with the strategy.

Companies must have remunerative policies that do not cause inequality. It is a common opinion that the economic remuneration of the people who make up the organisation must be reviewed and aligned with the company’s situation and productivity, with the employees being involved with the company’s results. If the company wins, the people win.
 

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Introduction
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Why?