Democratic leadership is the process of leadership characterized by collective decision-making and direct involvement of a large group of people in all or part of the decision-making process. Such leadership styles are very common in corporate environments. In this article, we will describe three examples of democratic leadership and how they can be beneficial for business owners.
The Idea of Democratic Leadership
- The idea of democratic management appeals to many business leaders because it encourages transparency, transparency.
- This means that if a company does not do its best and the customer experience is not up to par, employees have a right to know.
- They can then decide whether or not they wish to do business with the company. Employees are able to make collective decisions and participate in decision making processes without the need for formal processes.
- If a company is doing something wrong or not well, employees can have the ability to say that and ask questions about it.
Participative Management Culture
- A good example of a company that has a highly participative management culture would be Walmart. It is known to have an open and frank culture where employees are not afraid to voice their opinions or question their superiors.
- Walmart employees are willing to make suggestions and voice concerns about anything from issues with product delivery, to customer service issues.
- The management does not attempt to hide the fact that they cannot always meet every customer’s expectations. Instead, they encourage communication and open lines of communication between the employees and customers so they can make improvements in service and quality.
The Benefits of Democratic Leadership
- Democratic leadership can also be beneficial in the organizational setting. For example, in some organizations, such as small business corporations, employee representatives serve as representatives in the decision making process. They represent the interests of the whole workforce and can suggest ways to improve the company operations.
- Examples of democratic leadership in the organization include things like worker representation, employee stock ownership programs, and pay equity plans. All of these provide employees with the opportunity to share in the business success of the organization.
- All of these policies encourage employees to be active participants in the business processes and are built upon their personal talents, skills, and efforts. Employees are encouraged to participate in their own success and be a part of the overall success of the company.
The key to Successful Democratic Management
The key to successful democratic management is to ensure that it is built upon employees that truly appreciate its benefits. For example, if a company is run like a corporation, it can be highly cooperative and work towards creating a shared sense of success.
If employees feel they are not a part of the success of the business, they will feel disempowered and may not contribute as much as they would like to. This disempowerment can lead to a lack of respect for the business and a loss of respect for the organization.
In conclusion, democratic leadership in the organization provides a way for employees to participate in the decisions that affect the business. It allows employees a sense of empowerment and a sense of pride and achievement. When this occurs, employees will perform better, perform at a higher level and increase morale and thus increase productivity.