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the Organization`s Performance in Dynamic Markets.

The main emphasis of this style is on management consultation with followers before making key
organizational decisions. When companies enter the decision-making process, the outcomes from the decisions
made can greatly affect both the company’s stability and that of its employees (Shafritz, 2010). Bringing
employees on board when making decisions about the company’s future helps strengthen the existing
relationship between them and the leadership (Robbins, 2014). Leaders will gain respect from their employees
and instill a sense of responsibility in their workforce when they let their employees to voice their opinions
(Jones, 2013). The benefits associated with this approach include increased trust in the leaders by their followers
(Moshal, 2009). Leaders that make decisions while keeping employees in the dark may lose the trust of their
subordinates (Jones, 2013). Some employees may believe that the company is keeping decisions about its future
plans secret because those plans include adverse outcomes for employees. This may in turn have a negative
impact on employee performance (Gupta, 2012). Involving employees in the company’s decision making
process enables leaders to bring transparency to the workplace (Sinek, 2014).
Participative leadership also points to employee motivation as a building block to superior employee
performance. Employee’s motivation plays a crucial role in leadership effectiveness which leads to high
productivity. According to Rost (2013), the effectiveness of leadership rests on a process of influence, in this
case, employees are motivated to work towards goals, not through intimidation, but through individual
inspiration. Motivation can be considered as one of most important factors that can help an organization to
Researchjournali’s Journal of Management
Vol. 4 | No. 5 July | 2016 ISSN 2347-8217 5
achieve its goals.