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Soonhee Kim
University of Nevada, Las Vegas




Participative Management and Job
Satisfaction: Lessons for Management Leadership

        Researchers and practitioners in both the public and private sectors agree that participative man-
        agement improves employees’ job satisfaction. Public agencies have also turned to strategic plan-
        ning to enhance government performance and accountability. This study explores the relationship
        between participative management in the context of the strategic planning and job satisfaction in
        local government agencies. The results of multiple regression analysis show that managers’ use of
        a participative management style and employees’ perceptions of participative strategic planning
        processes are positively associated with high levels of job satisfaction. The study also finds that
        effective supervisory communications in the context of the strategic planning process are positively
        associated with high levels of job satisfaction. The study suggests that participative management
        that incorporates effective supervisory communications can enhance employees’ job satisfaction.
        In this regard, organizational leaders in the public sector should emphasize changing organiza-
        tional culture from the traditional pattern of hierarchical structure to participative management
        and empowerment.


Introduction
   One of the leading challenges in public management          and productivity (Brayfield and Crockett 1955; Petty,
has been implementing effective human capital strategies       McGee, and Cavender, 1984; Iaffaldano and Muchinsky
to enhance government performance and accountability.          1985), studies reveal that satisfied employees are more
As a result of the emphasis on performance and results-        likely to have low absenteeism and turnover (Carsten and
oriented government services, researchers in public admin-     Spector 1987; Locke 1976; Tett and Meyer 1993; Hack-
istration and government agencies have stressed effective      man and Oldham 1975; Farrell and Stamm 1988; Brooke
human resources management strategies such as job satis-       and Price 1989; Barling, Wade, Fullagar 1990; Kemery et
faction, team empowerment, participative management, and       al. 1985; Kemery, Mossholder, and Bedeian 1987; Pierce,
strategic planning (Noer 1993; deLeon and Taher 1996;          Rubenfeld, Morgan 1991; Eby et al. 1999).
DeSantis and Durst 1996; Rago 1996; Ting 1996; MSPB                With respect to organizational performance and indi-
1998a, b; GAO 1999).                                           vidual productivity, absenteeism and retention are signifi-
   For years, researchers (Brayfield and Crockett 1955;        cant targets for current human resource management in
Petty, McGee, and Cavender 1984; Iaffaldano and                both the private and public sectors (Carsten and Spector
Muchinsky 1985) have disputed the extent to which in-          1987; Locke 1976; Eby et al. 1999). Specifically, several
creased job satisfaction leads to improved performance.        researchers (Eby et al. 1999; Pierce, Rubenfeld, Morgan
Iaffaldano and Muchinsky (1985) conclude that the rela-        1991; Thomas and Velthouse 1990) have argued that en-
tionship has been only weakly manifested. Brayfield and        hancing individuals’ perceptions of empowerment and fair
Crockett (1955) conclude there is no evidence of a rela-       treatment may intensify affective reactions toward work
tionship between job satisfaction and performance. On the
                                                               Soonhee Kim is an assistant professor in the Department of Public Adminis-
other hand, based on a meta-analysis, Petty, McGee, and        tration at the University of Nevada, Las Vegas. Her teaching and research
Cavender (1984) demonstrate a strong relationship between      interests include human resources management, public management, pro-
                                                               gram evaluation, and information resources management. She has authored
job satisfaction and performance. Despite researchers’ dis-    several journal articles in the areas of public management and human re-
agreement about the relationship between job satisfaction      sources management. Email: sokim@ccmail.nevada.edu.

                                                   Participative Management and Job Satisfaction: Lessons for Management Leadership 231
and, ultimately, reduce rates of turnover and absenteeism.            nization–human relationship to enhance productivity and
Given the significant cost of employee absenteeism and                develop human capital. Focusing on human motivation and
turnover for organizational performance, scholars must                its impact on job satisfaction and productivity, scholars have
clearly identify variables such as empowerment, partici-              conducted research on participative management and em-
pative management, quality of work life, and the role of              powerment (Drucker 1954, 1974; Likert 1967; Spreitzer,
managers, that affect job satisfaction in government agen-            Kizilos, and Nason 1997; Ouchi 1981; Pascale and Athos
cies (Bruce and Blackburn 1992; Rainey 1997).                         1981). Participation is a process in which influence is
   Several researchers have found that strategic planning             shared among individuals who are otherwise hierarchical
has been widely implemented in federal,1 state, and local             unequals (Locke and Schweiger 1979; Wagner 1994). Par-
governments (Berman and West 1998; Berry and Wechsler                 ticipatory management practices balance the involvement
1995). Berman and West (1998) find that strategic plan-               of managers and their subordinates in information-process-
ning is the most widely used productivity-improvement                 ing, decision-making, or problem-solving endeavors
strategy in both municipalities and nonprofit organizations.          (Wagner 1994).
Although there is considerable research showing that par-                 In line with the research on participative management,
ticipative management positively affects employees’ job               participative decision making has been emphasized in re-
satisfaction (Drucker 1954, 1974; Likert 1967; Daley 1986;            lation to job satisfaction (Cotton et al. 1988; Macy,
Bernstein 1993), little empirical research has been con-              Peterson, and Norton 1989). Several studies have demon-
ducted on the relationship between the participative man-             strated that participative decision making can be benefi-
agement of strategic planning processes and employees’                cial to workers’ mental health and job satisfaction (Spector
job satisfaction in the public sector. Government agencies’           1986; Miller and Monge 1986; Fisher 1989). Daniels and
widespread use of strategic planning raises a research ques-          Bailey (1999), however, argue the evidence regarding the
tion regarding the relationship between employees’ par-               impact of participative decision making on job satisfac-
ticipation in strategic planning processes and job satisfac-          tion has not been consistent. The relationship between par-
tion in the public sector.                                            ticipative decision making and job satisfaction could be
   The purpose of this study is to explore the relationship           nonlinear and contingent on individual and situational vari-
between participatory management in the context of the                ables (Cotton 1993, 1995; Daniels and Guppy 1994).
strategic planning and job satisfaction in local government               On the other hand, Spreitzer, Kizilos, and Nason (1997)
agencies. This study extends research on the organizational           argue that the notion of empowerment is derived from theo-
contexts of strategic planning, such as managers’ use of a            ries of participative management and employee involve-
participative management style, employees’ participation              ment. According to these authors, the basic assumption of
in strategic planning, supervisors’ skill in effective com-           participative management is that sharing managers’ deci-
munications, and their consequences for job satisfaction.             sion-making power with employees will enhance perfor-
Using employee survey data collected by Clark County in               mance and work satisfaction. They maintain that the main
Nevada, an empirical analysis is conducted to examine                 issues of the quality-of-life movement are enhancing em-
these relationships in local government agencies.                     ployee satisfaction, improving intrinsic motivation, and
   This article begins with a review of the literature on             helping employees to feel good about their work and jobs.
participative management and job satisfaction in both the             Therefore, job satisfaction was one of the earliest antici-
private and public sectors. Next, it discusses issues and             pated outcomes of empowerment.
concerns in a participative strategic planning process, su-               Many managers, union leaders, and scholars share the
pervisory communications, and job satisfaction. Three                 belief that participative management practices have sub-
hypotheses tested in this study are presented at the end of           stantial positive effects on performance and satisfaction at
the literature review. The major findings demonstrate the             work (Jackson 1983; Hoerr 1989; Peterson and Hillkirk
positive relationship between participative management and            1991; Bluestone and Bluestone 1992; Bernstein 1993). In
job satisfaction. The final section of the article also dis-          recent research regarding public-service motivation,
cusses lessons and implications of the findings for man-              Brewer, Selden, and Facer (2000) suggest that policy mak-
agement leadership and public management.                             ers and public managers should consider employees in
                                                                      decision-making processes as one of the strategies for ad-
Literature Review and Hypotheses                                      vancing public-service motivation. Thus, the following
                                                                      hypothesis is examined in this study:
Participative Management and Job Satisfaction                              Hypothesis 1: Employees who believe that man-
  Historically, management theory (Argyris 1957; Bennis                    agers in their units use a participative management
1966; Herzberg 1966, 1968; Likert 1967; Maslow 1954)                       style are more likely to express higher levels of sat-
has emphasized the importance of coordinating the orga-                    isfaction with their jobs.

232 Public Administration Review • March/April 2002, Vol. 62, No. 2
Participative Strategic Planning Process and Job               role conflict during the implementation of strategic plans.
Satisfaction                                                   Furthermore, involvement in the process of defining stra-
   Based on a survey of state agencies, Berry and Wechsler     tegic objectives and selecting strategic options may increase
(1995) find that 60 percent of agencies reported engaging      influence over the organizational environment (Daniels and
in some form of strategic planning. According to Berman        Bailey 1999). However, there is little empirical evidence
and West (1998), strategic planning is the most widely used    on the relationship between employees’ perceptions of their
productivity improvement strategy in both municipalities       level of participation in strategic planning processes and
and nonprofit organizations.2 Berry and Wechsler (1995,        employees’ job satisfaction and productivity in the public
159) define strategic planning as “a systematic process for    sector. Therefore, this study analyzes the relationship be-
managing the organization and its future direction in rela-    tween participative strategic planning processes and em-
tion to its environment and the demands of external stake-     ployees’ job satisfaction.
holders, including strategy formulation, analysis of agency          Hypothesis 2: Employees who perceive strategic
strengths and weaknesses, identification of agency stake-            planning processes in their work units as more par-
holders, implementation of strategic actions, and issue              ticipative are more likely to express higher levels of
management.” Bryson (1988, 5) further defines strategic              satisfaction with their jobs.
planning as “a disciplined effort to produce fundamental
decisions and actions that shape and guide what an organi-
                                                               Supervisory Communications and Job
zation is, what it does, and why it does.”
                                                               Satisfaction
   An organization’s strategy is its long-term direction
and objectives (Johnson and Scholes 1993), which affect           Several researchers (Hackman and Lawler 1971; Hack-
the whole of the organization (Hickson et al. 1986). Stra-     man and Oldham 1975, 1976; Ting 1996) have empha-
tegic decisions concern the fundamental nature of the or-      sized that individuals are motivated not only by their ex-
ganization, including decisions about activities the orga-     trinsic needs, but also by positive job-related factors such
nization should engage in, the acquisition and divestment      as task clarity, skill utilization, task significance, and so-
of resources, and the nature and pace of change (Asch          cial interactions. Research shows that an accurate under-
and Bowman 1989). Individuals who participate in stra-         standing of job tasks helps employees to reduce job uncer-
tegic decision-making processes are able to influence their    tainty (Wanous 1977; Bedeian and Armenakis 1981;
working environment in the broadest possible manner.           Glisson and Durick 1988; Ting 1996). Studies also dem-
Given the importance of strategic decisions to work en-        onstrate that relationships with co-workers and supervi-
vironments (Hickson et al. 1986), Daniels and Bailey           sors affect job satisfaction (Brass 1981; Daley 1986;
(1999) argue that the context within which individuals         Emmert and Taher 1992).
participate in decisions concerning the fundamental na-           The literature increasingly reveals a relationship be-
ture of their work environment may be a key moderator          tween supervisor characteristics and levels of job satis-
of the relationship between participative decision mak-        faction (Daley 1986; Harrick, Vanek, and Michlitsch
ing and job satisfaction. Therefore, the context in which      1986; Emmert and Taher 1992; Oldham and Cummings
strategies are developed is likely to moderate the rela-       1996; London and Larsen 1999). For instance, Oldham
tionship between participative decision making and job         and Cummings (1996) find that employees produce the
satisfaction (Daniels and Bailey 1999).                        most creative outcomes when they work on complex,
   Hart and Banbury (1994) indicate that different pro-        challenging jobs and are supervised in a supportive,
cesses of strategy development or strategic decision mak-      noncontrolling way. London and Larsen (1999) conclude
ing occur across organizations and even within the same        that an employee’s immediate supervisor has an impor-
organization. Given the complexity of strategic decision       tant role in creating a noncontrolling environment that
making, defining strategic goals and analyzing strategic       empowers self-development. For example, supportive
options are of great importance in the planning process.       supervisors encourage subordinates to voice their own
Based on a survey of state agencies, Berry and Wechsler        concerns, provide positive and mainly informational feed-
(1995) find that a participatory process, such as lower        back, and facilitate employee skill development (London
level staff’s inclusion in strategic plan development, is      and Larsen 1999). Emmert and Taher (1992) also find
one of the trends in strategic planning evolution in state     social environment and job-related feedback to be im-
agencies.                                                      portant determinants of job satisfaction for both public
   Through participation in strategic planning, employees      professionals and blue-collar employees. In general, their
can have a clear understanding of strategic goals and pre-     research finds that people who have positive perceptions
cise plans for their implementation. In addition, employ-      of their job environment and who relate well with their
ees can clarify their roles to reduce role ambiguity and       fellow employees and supervisors display higher levels

                                                   Participative Management and Job Satisfaction: Lessons for Management Leadership 233
of job satisfaction than workers with negative perceptions                  Survey Measures
of both. This study explores the relationship between su-                      Fourteen items (see appendix) were developed to mea-
pervisory communications and employees’ job satisfac-                       sure managers’ use of a participative management style,
tion. The study tests the following hypothesis:                             the existence of a participatory strategic planning process,
      Hypothesis 3: Employees who believe they have                         and the effectiveness of supervisory communications as
      effective communications with their supervisors in                    independent variables, and job satisfaction as a dependent
      their work units are more likely to express higher                    variable. Eleven items were measured on a five-point
      levels of job satisfaction.                                           Likert-type scale, with 1 representing “strongly agree” and
                                                                            5 “strongly disagree.” Three items were measured on a scale
                                                                            of excellent, good, fair, poor, and no opinion. Four control
Research Method                                                             variables were included in the survey: teamwork experi-
   This study is based on data from the Clark County em-                    ence, union membership, position (management/nonman-
ployee survey conducted in 1999. In order to improve                        agement), and years of employment in a department. A
employees’ work environment, Clark County,3 Nevada,                         factor analysis indicated that the items designed to mea-
has been conducting an employee survey every two years                      sure the three independent variables loaded on three sepa-
since 1993. In 1999, Clark County conducted a survey of                     rate factors. As shown in table 1, the factor loadings sup-
employees’ work environments and the process of strate-                     port the use of these items as indicators of the underlying
gic planning in agencies. For the 1999 survey, Clark                        constructs they were designed to measure.5
County contracted with the Cannon Center for Survey
Research (CCSR) at the University
of Nevada, Las Vegas to collect, Table 1 Factor Analysis of the Survey Items
                                                                                             a


enter, and analyze the data (Clark (Principal Component Analysis, Varimax Method)
County 1999b). The Department of Items                                            1. Managers’ use         2. Participative 3. Effectiveness of
Administrative Services and the                                                    of participative      strategic planning    supervisory
                                                                                  management style            processes      communications
CCSR collaborated to develop the
                                     1. A positive change in the management style       0.85                   0.23                0.21
survey items considering the work 2. Manager’s efforts to increase employee
environments at Clark County. The       involvement                                     0.84                   0.28                0.21
following section will discuss spe- 3. Manager’s efforts to improve communication       0.83                   0.24                0.24
                                     4. Manager’s attempt to allow employee to
cific data collection procedures        improve the work process                        0.79                   0.28                0.28
and survey measures.                 1. Understanding of strategic plan                 0.20                   0.84                0.15
                                             2. Role clarity in strategic plan                    0.27         0.82                0.23
Sample Selection and Survey                  3. Input in the development of strategic plan        0.42         0.73                0.13
Administration                               1. Effective communication with supervisors          0.19         0.14                0.89
   After the CCSR provided an                2. Supervisors’ listening skills                     0.25         0.14                0.83
                                             3. Clear understanding of the expectation of work    0.29         0.22                0.66
original copy of the 1999 Clark
County employee opinion survey, Eigenvalues                                                       6.12         1.24                1.05

the county’s Department of Ad- Percent of common variance                                        55.6         11.3                 9.56
                                      N = 1,576
                                             a
ministrative Services coordinated
the printing and distribution of the
surveys (Clark County 1999b). Payroll clerks distributed                    Independent Variables
the surveys with the March 23, 1999, payroll checks and                        Managers’ Use of a Participative Management Style.
sent reminders with the April 9 payroll checks to em-                       Managers’ use of a participative management style was
ployees in 24 departments.4 Employees were given three                      defined using four indicators: (1) “Within the last two
options for returning the surveys: placing them in locked                   years, managers in my department have made an attempt
drop boxes located in County buildings; direct mailing to                   to allow employees to improve our own work process”;
CCSR; or direct faxing to CCSR. Surveys from the drop                       (2) “Within the last two years, I have seen a positive
boxes were picked up during the week of April 19, and                       change in the management style in my department”; (3)
surveys by mail and fax were accepted until data entry                      “In general, managers in my department have made an
was complete. The survey was distributed to 4,097 em-                       effort within the past two years to improve communica-
ployees; 1,576 employees responded to the survey, for a                     tion”; and (4) “In general, managers in my department
response rate of 38.5 percent. Response rates among de-                     have made an effort to increase employee involvement in
partments ranged from 30 percent to 80 percent.                             decision-making.”


234 Public Administration Review • March/April 2002, Vol. 62, No. 2
Use of a Participative Strategic Planning Process.                              ___ work and/or improvement teams.” A numerical scale,
Employees’ perceptions of a participatory strategic plan-                           0, 1, 2, 3, and 4 or more, was provided for this measure.
ning process comprised three items: (1) “My understand-                             Previous research has also shown that having a professional
ing of department’s strategic plan mission, vision and goals                        or managerial-level job is associated with higher levels of
is (excellent, good, fair, poor, no opinion)”; (2) “I feel that                     job satisfaction (deLeon and Taher 1996; Lewis 1992).
I had input in the development of my department’s strate-                           Using a dummy variable, the variable of position was mea-
gic planning process”; and (3) “I understand my role in                             sured by the following indicator: “I am on the Manage-
accomplishing the goals in my department’s strategic plan.”                         ment or Executive Plan.” The study controlled for union
    Effective Supervisory Communications. Supervisors’                              membership among participants using a dummy variable.
skill in communication was defined using three indicators:                          The study also included years of work in a department as a
(1) “If I have a suggestion to make, my supervisor (the                             control variable: “How many years have you worked in
person I directly report to) will listen, even if he or she                         your department?” (0–3 years, 4–7 years, 8–10 years, more
does not agree with me”; (2) “My supervisor and I com-                              than 10 years).
municate well with each other about work related topics”;
and (3) “I have a clear understanding of what is expected
of me in my work.”                                                                  Results and Findings
                                                                                       Table 2 provides descriptive statistics and correlation
Dependent Variable                                                                  coefficients for all variables. The majority of respondents
   Job satisfaction. Job satisfaction comprised four items                          were from nonmanagement positions (94 percent). Among
from the survey instrument: (1) “Overall, compared to other                         the survey respondents, only 203 (12.9 percent) had par-
places I could work, Clark County is: excellent, good, fair,                        ticipated in teamwork more than three times. Thirty-eight
poor, no opinion”; (2) “Compared to other places I could                            percent of the survey respondents were union members.
work, I feel my career opportunities at Clark County are:                           The years of work at the department were distributed as
excellent, good, fair, poor, no opinion”; (3) “My job pro-                          follows: 0–3 years (39 percent), 4–7 years (26 percent), 8–
vides me with a sense of accomplishment”; and (4) I re-                             10 years (11 percent), and more than 10 years (23 per-
ceive the recognition that I deserve for my work. The co-                           cent). Managers’ use of a participatory management style
efficient alpha for this scale was 0.81.                                            correlated positively with job satisfaction and a participa-
                                                                                    tive strategic planning process. As expected, effective com-
Control Variables                                                                   munication with supervisors was positively correlated with
   Four control variables were included in the survey: team-                        job satisfaction and a participative strategic planning pro-
work experience, union membership, position (manage-                                cess (see table 2).
ment/nonmanagement), and years of employment in a de-                                  The results of the ordinary least squares multiple re-
partment. Teamwork experience was used as a control                                 gression analysis appear in table 3. As predicted, manag-
because it has been shown to positively influence job sat-                          ers’ use of a participative management style, participative
isfaction (Cordery, Mueller, and Smith 1991; Kirkman and                            strategic planning processes, and effective supervisory
Rosen 1999). The following item was used for the team-                              communications were positively associated with high lev-
work experience: “In the past two years, I participated in                          els of employee job satisfaction. Thus, hypotheses 1, 2,

Table 2      Descriptive Statistics and Correlations a
Variable (range)                                    Mean (N)        Stan. dev.        1          2            3       4          5          6         7          8

1. Job satisfaction (1–5)                         2.38 (1,576)         0.82       1
2. Managers’ use of a participative
   management style (1–5)                         3.09 (1,538)         1.05         .65**      1
3. Participative strategic planning (1–5)         2.93 (1,572)         1.02         .54**       .63**     1
4. Effective communications with
   supervisors (1–5)                              2.18 (1,576)         0.89         .60**       .57**      .46**     1
5. Teamwork experience (0–4)                       .97 (1,521)         1.26        –.18**      –.26**     –.37**     –.16**    1
6. Management position (0–1)                       .02 (1,542)         0.24        –.17**      –.20**     –.29**      .10**     .24**      1
7. Union membership (0–1)                          .38 (1,551)         0.48         .13**       .14**      .14**      .11**    –.05*       –.15**     1
8. Years of work (1–4)                            2.19 (1,555)         1.18         .07**       .05       –.01        .01       .13**       .09**      .13**     1
a
 N = 1,576
**Correlation is significant at the 0.01 level (2-tailed).
*Correlation is significant at the 0.05 level (2-tailed).
(Years of work, 1= 0–3 years, 2 = 4–7 years, 3 = 8–10 years, 4 = more than 10 years; Management position, 1= yes, and 0 = no; Union membership, 1 = yes, and 0 = no.)



                                                                      Participative Management and Job Satisfaction: Lessons for Management Leadership 235
and 3 were supported in this study (see table 3).                           employees who have worked in their department for a
   The findings in table 3 indicate that managers’ use of a                 shorter period are more likely to express higher levels of
participative management style is significantly associated                  satisfaction with their jobs.
with employee job satisfaction. The results show that em-
ployees who believe in managers’ use of a participative
management style report a higher level of job satisfaction
                                                                            Implications and Discussion
than employees who do not believe in managers’ use of                          Although researchers point out there is no consistent
participative management style in their work unit (β = .36,                 relationship between job satisfaction and individual per-
p < .001). Several studies (Wagner 1994; Bernstein 1993;                    formance (Brayfield and Crockett 1955; Iaffaldano and
Bluestone and Bluestone 1992; Hoerr 1989; Peterson and                      Muchinsky 1985), there is consistent evidence that low job
Hillkirk 1991) show that participative management prac-                     satisfaction results in absenteeism, reduced commitment
tices have positive effects on performance and job satis-                   to organizations, turnover, and stress (Carsten and Spector
faction. Results from the present study lend further sup-                   1987; Locke 1976; Tett and Meyer 1993; Hackman and
port to this conclusion. Therefore, the present study                       Oldham 1975; Farrell and Stamm 1988; Brooke and Price
provides robust support of hypothesis 1.                                    1989; Barling, Wade, and Fullagar 1990; Kemery et al.
   The regression analysis also finds that a participative                  1985; Kemery, Mossholder, and Bedeian 1987; Pierce,
strategic planning process is significantly associated with                 Rubenfeld, Morgan 1991; Eby et al. 1999). Hence, it is
job satisfaction (β = .15, p < .001), suggesting that em-                   important for researchers to clarify the factors affecting
ployees who believe they have input into strategic plan-                    employees’ job satisfaction in the context of organizational
ning are more likely to report a higher level of job satisfac-              environment changes.
tion than employees who do not. Therefore, hypothesis 2                        This study examined participative management and job
was supported in this study. The regression results also                    satisfaction in local government agencies. It extended re-
support hypothesis 3. Employees who believe they have                       search on the relationship between participative manage-
effective communications with their supervisor express a                    ment in the context of strategic planning process and job
higher level of job satisfaction than those who do not be-                  satisfaction. What are the implications of the findings of
lieve they have effective communications with their super-                  this study for public management? The essential implica-
visors (β = .32, p < .001). This result is consistent with                  tion is that executive leaders and managers should become
previous research on supervisory relationships and levels                   aware of the importance of manager’s use of participative
of job satisfaction (Daley 1986; Harrick, Vanek, and                        management, employees’ participation in strategic plan-
Michlitsch 1986; Emmert and Taher 1992; Oldham and                          ning processes, and the role of effective avenues of com-
Cummings 1996; London and Larsen 1999). Among the                           munication with supervisors. When agencies implement
control variables, only the years of work in a department                   leadership development programs or other training for
was significantly related to job satisfaction. It shows that                managers and supervisors, they should consider including
                                                                            participative management and employee empowerment
Table 3 Results of Regression Analysis                                      techniques as key components of the programs.
(Participative Management and Job Satisfaction)a                               In addition, the study’s findings demonstrate that a par-
Independent                        Standardized       Standard     t
                                                                            ticipative strategic planning process positively affects em-
variables                           regression          error               ployee job satisfaction. To the extent that job satisfaction
                                   coefficient (β )                         reduces absenteeism and turnover, the study’s findings sug-
Managers’ use of a participative                                            gest that employee participation in strategic planning con-
   management style                   0.36              0.03     13.03***
Effective supervisory communications 0.32               0.02     13.38***
                                                                            tributes to organizational effectiveness. As Daniels and
Participation in strategic planning                                         Bailey (1999) indicate, individuals who participate in stra-
   processes                          0.15              0.03      5.63***   tegic decision-making processes are able to influence their
Control variables                                                           work environments in the broadest possible ways. In this
Teamwork experience                   0.01              0.02      0.41
Management position                  –0.03              0.09     –1.65
                                                                            respect, strategic planning procedures in agencies should
Union membership                     –0.00              0.04     –0.14      include the employee as a key stakeholder who is neces-
Years of work at department           0.04              0.02      1.94*     sary to successful implementation of the strategic plan.
Constant                               0.04            –1.30                More generally, employees’ clear understanding of the
R2                                     0.501                                objectives of the strategic plan and their role within it af-
Adjusted R2                            0.498***                             fect the success of strategic planning in public agencies.
F                                    190.53***
                                                                               Effective communications between supervisors and
a
  N = 1,576
***p < .001
                                                                            employees should be emphasized to facilitate the process
*p < .05                                                                    of strategic planning among executive leaders, managers,

236 Public Administration Review • March/April 2002, Vol. 62, No. 2
and front-line employees. Effective communications be-          sures for employees’ participation in strategic planning
tween supervisor and employee are a significant factor in       processes in government agencies.
informing employees of the objectives and job expecta-              Several limitations of the present study should also be
tions under existing or, particularly, new organizational       noted. First, the measures of participatory management
structure. Ting (1996) finds that task clarity is an impor-     used in this study were perceptual rather than objective.
tant determinant of job satisfaction. The present study also    To analyze managers’ leadership of participative manage-
found that employees’ effective communication with their        ment, more empirical data based on in-depth interviews
supervisors is significantly associated with job satisfac-      and participatory observation should be collected beyond
tion. Supervisory communications might be a primary             the survey method. Second, the present study did not col-
means to link the participative strategic planning process      lect information regarding gender, family structure, edu-
to employees’ job satisfaction.                                 cation, and age. Researchers have demonstrated that de-
   None of the above suggestions can be easily accom-           mographic variables, including gender, education, and age,
plished without organizational leaders’ commitment to           are significantly related to job satisfaction. Findings sug-
changing organizational culture from the traditional pat-       gest that older, educated, male employees in full-time po-
terns of hierarchical structure to participative manage-        sitions are more satisfied than younger, less educated, fe-
ment and empowerment in agencies. Several studies               male, and part-time employees (Mottaz 1988; deLeon and
(Northouse 1997; Tichy and DeVanna 1990; Zajac and              Taher 1996). Furthermore, to analyze the impact of work–
Al-Kazemi 1997) have emphasized transformational lead-          family conflict on employee job satisfaction, family struc-
ership, in which leaders actively respond to fundamental        ture should be considered in future research. The future
changes in the environment to engage in programs of             study should include these variables as individual charac-
learning, change, and renewal in the organization. To re-       teristics affecting job satisfaction.
spond to the new needs of employees and the environ-                In conclusion, the findings reported in this study show
mental changes of the organization under strategic plan-        how managers’ use of a participative management style,
ning, executive leaders and managers should consider            use of participative strategic planning processes, and ef-
several efforts to facilitate participative management. For     fective supervisory communications affect job satisfaction.
example, the regular distribution of newsletters and            Thus, the study suggests that emphasizing participative
memoranda can be expected to provide employees with             management and fostering effective supervisory commu-
information on strategic planning procedures. Second,           nications can enhance employee job satisfaction. In this
management can set up regular focus group meetings with         regard, organizational leaders’ commitment to changing
employees and supervisors from different work units to          organizational culture from the traditional patterns of hi-
discuss issues of strategic planning related to operational     erarchical structure to participative management and em-
system changes, relationships among work units, and or-         powerment should be emphasized in the public sector.
ganizational effectiveness. Training programs for man-
agers and supervisors that emphasize participative man-
agement and effective communication skills would be                                 Acknowledgments
expected to facilitate implementation of strategic plan-
                                                                   The author thanks Debra Drake at Clark County and col-
ning, as well as participative management in agencies.          leagues at the University of Nevada, Las Vegas, for their help in
                                                                this research, as well as the comments of anonymous reviewers.
Conclusion
   This study examined the positive relationship between
participative management and job satisfaction in local gov-
ernment agencies. It also demonstrated the positive rela-
tionship between a participative strategic planning process
and job satisfaction. Furthermore, the study emphasized
effective supervisory communications as a factor affect-
ing employee job satisfaction. Results from this study sug-
gest several important directions for future research. For
example, multiple studies of the association between par-
ticipative management and job satisfaction in the public
sector will be necessary to validate the present results and
to explore the diverse job-related factors that may influ-
ence job satisfaction. Researchers could also develop mea-

                                                    Participative Management and Job Satisfaction: Lessons for Management Leadership 237
Notes

1. Especially since the Government Performance and Results                  and the importance of integrating their strategic plans and
   Act in 1993, federal agencies have emphasized their efforts              performance measures into their daily business operations
   on strategic planning and performance measurement.                       (Drake 1999). The process of strategic planning in Clark
2. Clark County has established a variety of organizational plan-           County reveals a traditional top-down communication flow
   ning and quality initiatives including Total Quality Manage-             in agencies (Clark County 1999b).
   ment and strategic planning and performance measurement               3. Clark County, with a population of 1,040,688 (60 percent of
   over the past decade (Clark County 1999a; Drake 1999). In                state population), is the most populous of Nevada’s 17 coun-
   1997, the county’s Department of Administrative Services                 ties (Clark County 1999a). With annual expenditures of ap-
   and the Board of County Commissioners proposed the                       proximately $1.8 billion, Clark County has one of the most
   County-wide Strategic Plan. The county manager formed a                  complex and distinctive configurations (Clark County 1999a).
   County-wide Strategic Planning Team and developed a model                The county comprises of 7,927 square miles and includes
   and a process that would provide for the consistent develop-             five incorporated cities, Las Vegas, Henderson, North Las
   ment of strategic plans and performance measurements for                 Vegas, Boulder City, and Mesquite; 13 unincorporated towns;
   the departments within Clark County government. Each de-                 one school district; four library districts; one urban and two
   partment was required to appoint a strategic planning liai-              rural fire districts; one sanitation district; one urban and three
   son, who acted as the point of contact for all strategic plan-           rural water districts; and 11 judicial townships.
   ning issues. Training classes were provided to all levels of          4. Participant departments in the survey: Administrative Ser-
   management and strategic planning liaisons on the strategic              vices, Airport, Assessor, Building, Business License, Center
   planning model and process. In 1999, based on a consistent               for Enterprise Information Technology, Clerk, Comprehen-
   model and incorporating results-focused performance mea-                 sive Planning, Comptroller, Constable-Henderson, Constable-
   surements, every department submitted strategic plans. When              Las Vegas, Coroner, County Commission/Finance, Family and
   each department completed its strategic plans, workshops                 Youth Services, General Services, Human Resources, Inter-
   were held for all directors, assistant directors, managers, and          nal Audit, Justice Court-Las Vegas, Public Administrator,
   strategic planning liaisons to discuss strategies and approaches         Public Works, Recorder, Sanitation, Social Services, and Trea-
   for implementing their strategic plans. These workshops                  surer.
   emphasized the roles of the managers and directors of each            5. Factor scores generated from a separate factor analysis on
   department and their responsibilities for ensuring that the              each of three independent variables were used as variables
   plans were carried out. In addition, participants were pro-              for a multiple regression analysis.
   vided a review concerning the ongoing monitoring of progress


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240 Public Administration Review • March/April 2002, Vol. 62, No. 2
Appendix
Items were measured on a five-point Likert-type scale, with 1 representing
“strongly agree” and 5 representing “strongly disagree” unless otherwise
noted.
Survey Measures
Manager’s use of a participative management style (coefficient alpha:
0.93)
1. Within the last two years, managers in my department have made an
   attempt to allow employees to improve our own work process.
2. Within the last two years, I have seen a positive change in the
   management style in my department.
3. In general, managers in my department have made an effort within
   the past two years to improve communication.
4. Managers in my department have made an effort to increase
   employee involvement in decision making.
Participative strategic planning processes (coefficient alpha: 0.83)
1. My understanding of department’s strategic plan mission, vision and
   goals is (excellent, good, fair, poor, no opinion).
2. I feel that I had input in the development of my department’s strategic
   planning process.
3. I understand my role in accomplishing the goals in my department’s
   strategic plan.
Supervisory communications (coefficient alpha: 0.80)
1. If I have a suggestion to make, my supervisor (the person I directly
    report to) will listen, even if he or she does not agree with me.
2. My supervisor and I communicate well with each other about work
    related topics.
3. I have a clear understanding of what is expected of me in my work.
Job satisfaction (coefficient alpha: 0.81)
1. Overall, compared to other places I could work, Clark County is:
   excellent, good, fair, poor, no opinion.
2. Compared to other places I could work, I feel my career opportunities
   at Clark County are: excellent, good, fair, poor, no opinion.
3. My job provides me with a sense of accomplishment.
4. I receive the recognition that I deserve for my work.
Control Variables
1. Teamwork experience: In the past two years, I participated in ___
   work and/or improvement teams. Numerical scales were provided for
   this measure: 0, 1, 2, 3, 4, or more.
2. Position: I am on the Management or Executive Plan (Yes, No).
3. Union membership: I am a member of a collective bargaining unit
   (union) (Yes, No).
4. Years of work at the department: How many years have you worked
   in your department? (0–3 years, 4–7 years, 8–10 years, more than
   10 years).




                                                                  Participative Management and Job Satisfaction: Lessons for Management Leadership 241

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Kim2002

  • 1. Soonhee Kim University of Nevada, Las Vegas Participative Management and Job Satisfaction: Lessons for Management Leadership Researchers and practitioners in both the public and private sectors agree that participative man- agement improves employees’ job satisfaction. Public agencies have also turned to strategic plan- ning to enhance government performance and accountability. This study explores the relationship between participative management in the context of the strategic planning and job satisfaction in local government agencies. The results of multiple regression analysis show that managers’ use of a participative management style and employees’ perceptions of participative strategic planning processes are positively associated with high levels of job satisfaction. The study also finds that effective supervisory communications in the context of the strategic planning process are positively associated with high levels of job satisfaction. The study suggests that participative management that incorporates effective supervisory communications can enhance employees’ job satisfaction. In this regard, organizational leaders in the public sector should emphasize changing organiza- tional culture from the traditional pattern of hierarchical structure to participative management and empowerment. Introduction One of the leading challenges in public management and productivity (Brayfield and Crockett 1955; Petty, has been implementing effective human capital strategies McGee, and Cavender, 1984; Iaffaldano and Muchinsky to enhance government performance and accountability. 1985), studies reveal that satisfied employees are more As a result of the emphasis on performance and results- likely to have low absenteeism and turnover (Carsten and oriented government services, researchers in public admin- Spector 1987; Locke 1976; Tett and Meyer 1993; Hack- istration and government agencies have stressed effective man and Oldham 1975; Farrell and Stamm 1988; Brooke human resources management strategies such as job satis- and Price 1989; Barling, Wade, Fullagar 1990; Kemery et faction, team empowerment, participative management, and al. 1985; Kemery, Mossholder, and Bedeian 1987; Pierce, strategic planning (Noer 1993; deLeon and Taher 1996; Rubenfeld, Morgan 1991; Eby et al. 1999). DeSantis and Durst 1996; Rago 1996; Ting 1996; MSPB With respect to organizational performance and indi- 1998a, b; GAO 1999). vidual productivity, absenteeism and retention are signifi- For years, researchers (Brayfield and Crockett 1955; cant targets for current human resource management in Petty, McGee, and Cavender 1984; Iaffaldano and both the private and public sectors (Carsten and Spector Muchinsky 1985) have disputed the extent to which in- 1987; Locke 1976; Eby et al. 1999). Specifically, several creased job satisfaction leads to improved performance. researchers (Eby et al. 1999; Pierce, Rubenfeld, Morgan Iaffaldano and Muchinsky (1985) conclude that the rela- 1991; Thomas and Velthouse 1990) have argued that en- tionship has been only weakly manifested. Brayfield and hancing individuals’ perceptions of empowerment and fair Crockett (1955) conclude there is no evidence of a rela- treatment may intensify affective reactions toward work tionship between job satisfaction and performance. On the Soonhee Kim is an assistant professor in the Department of Public Adminis- other hand, based on a meta-analysis, Petty, McGee, and tration at the University of Nevada, Las Vegas. Her teaching and research Cavender (1984) demonstrate a strong relationship between interests include human resources management, public management, pro- gram evaluation, and information resources management. She has authored job satisfaction and performance. Despite researchers’ dis- several journal articles in the areas of public management and human re- agreement about the relationship between job satisfaction sources management. Email: sokim@ccmail.nevada.edu. Participative Management and Job Satisfaction: Lessons for Management Leadership 231
  • 2. and, ultimately, reduce rates of turnover and absenteeism. nization–human relationship to enhance productivity and Given the significant cost of employee absenteeism and develop human capital. Focusing on human motivation and turnover for organizational performance, scholars must its impact on job satisfaction and productivity, scholars have clearly identify variables such as empowerment, partici- conducted research on participative management and em- pative management, quality of work life, and the role of powerment (Drucker 1954, 1974; Likert 1967; Spreitzer, managers, that affect job satisfaction in government agen- Kizilos, and Nason 1997; Ouchi 1981; Pascale and Athos cies (Bruce and Blackburn 1992; Rainey 1997). 1981). Participation is a process in which influence is Several researchers have found that strategic planning shared among individuals who are otherwise hierarchical has been widely implemented in federal,1 state, and local unequals (Locke and Schweiger 1979; Wagner 1994). Par- governments (Berman and West 1998; Berry and Wechsler ticipatory management practices balance the involvement 1995). Berman and West (1998) find that strategic plan- of managers and their subordinates in information-process- ning is the most widely used productivity-improvement ing, decision-making, or problem-solving endeavors strategy in both municipalities and nonprofit organizations. (Wagner 1994). Although there is considerable research showing that par- In line with the research on participative management, ticipative management positively affects employees’ job participative decision making has been emphasized in re- satisfaction (Drucker 1954, 1974; Likert 1967; Daley 1986; lation to job satisfaction (Cotton et al. 1988; Macy, Bernstein 1993), little empirical research has been con- Peterson, and Norton 1989). Several studies have demon- ducted on the relationship between the participative man- strated that participative decision making can be benefi- agement of strategic planning processes and employees’ cial to workers’ mental health and job satisfaction (Spector job satisfaction in the public sector. Government agencies’ 1986; Miller and Monge 1986; Fisher 1989). Daniels and widespread use of strategic planning raises a research ques- Bailey (1999), however, argue the evidence regarding the tion regarding the relationship between employees’ par- impact of participative decision making on job satisfac- ticipation in strategic planning processes and job satisfac- tion has not been consistent. The relationship between par- tion in the public sector. ticipative decision making and job satisfaction could be The purpose of this study is to explore the relationship nonlinear and contingent on individual and situational vari- between participatory management in the context of the ables (Cotton 1993, 1995; Daniels and Guppy 1994). strategic planning and job satisfaction in local government On the other hand, Spreitzer, Kizilos, and Nason (1997) agencies. This study extends research on the organizational argue that the notion of empowerment is derived from theo- contexts of strategic planning, such as managers’ use of a ries of participative management and employee involve- participative management style, employees’ participation ment. According to these authors, the basic assumption of in strategic planning, supervisors’ skill in effective com- participative management is that sharing managers’ deci- munications, and their consequences for job satisfaction. sion-making power with employees will enhance perfor- Using employee survey data collected by Clark County in mance and work satisfaction. They maintain that the main Nevada, an empirical analysis is conducted to examine issues of the quality-of-life movement are enhancing em- these relationships in local government agencies. ployee satisfaction, improving intrinsic motivation, and This article begins with a review of the literature on helping employees to feel good about their work and jobs. participative management and job satisfaction in both the Therefore, job satisfaction was one of the earliest antici- private and public sectors. Next, it discusses issues and pated outcomes of empowerment. concerns in a participative strategic planning process, su- Many managers, union leaders, and scholars share the pervisory communications, and job satisfaction. Three belief that participative management practices have sub- hypotheses tested in this study are presented at the end of stantial positive effects on performance and satisfaction at the literature review. The major findings demonstrate the work (Jackson 1983; Hoerr 1989; Peterson and Hillkirk positive relationship between participative management and 1991; Bluestone and Bluestone 1992; Bernstein 1993). In job satisfaction. The final section of the article also dis- recent research regarding public-service motivation, cusses lessons and implications of the findings for man- Brewer, Selden, and Facer (2000) suggest that policy mak- agement leadership and public management. ers and public managers should consider employees in decision-making processes as one of the strategies for ad- Literature Review and Hypotheses vancing public-service motivation. Thus, the following hypothesis is examined in this study: Participative Management and Job Satisfaction Hypothesis 1: Employees who believe that man- Historically, management theory (Argyris 1957; Bennis agers in their units use a participative management 1966; Herzberg 1966, 1968; Likert 1967; Maslow 1954) style are more likely to express higher levels of sat- has emphasized the importance of coordinating the orga- isfaction with their jobs. 232 Public Administration Review • March/April 2002, Vol. 62, No. 2
  • 3. Participative Strategic Planning Process and Job role conflict during the implementation of strategic plans. Satisfaction Furthermore, involvement in the process of defining stra- Based on a survey of state agencies, Berry and Wechsler tegic objectives and selecting strategic options may increase (1995) find that 60 percent of agencies reported engaging influence over the organizational environment (Daniels and in some form of strategic planning. According to Berman Bailey 1999). However, there is little empirical evidence and West (1998), strategic planning is the most widely used on the relationship between employees’ perceptions of their productivity improvement strategy in both municipalities level of participation in strategic planning processes and and nonprofit organizations.2 Berry and Wechsler (1995, employees’ job satisfaction and productivity in the public 159) define strategic planning as “a systematic process for sector. Therefore, this study analyzes the relationship be- managing the organization and its future direction in rela- tween participative strategic planning processes and em- tion to its environment and the demands of external stake- ployees’ job satisfaction. holders, including strategy formulation, analysis of agency Hypothesis 2: Employees who perceive strategic strengths and weaknesses, identification of agency stake- planning processes in their work units as more par- holders, implementation of strategic actions, and issue ticipative are more likely to express higher levels of management.” Bryson (1988, 5) further defines strategic satisfaction with their jobs. planning as “a disciplined effort to produce fundamental decisions and actions that shape and guide what an organi- Supervisory Communications and Job zation is, what it does, and why it does.” Satisfaction An organization’s strategy is its long-term direction and objectives (Johnson and Scholes 1993), which affect Several researchers (Hackman and Lawler 1971; Hack- the whole of the organization (Hickson et al. 1986). Stra- man and Oldham 1975, 1976; Ting 1996) have empha- tegic decisions concern the fundamental nature of the or- sized that individuals are motivated not only by their ex- ganization, including decisions about activities the orga- trinsic needs, but also by positive job-related factors such nization should engage in, the acquisition and divestment as task clarity, skill utilization, task significance, and so- of resources, and the nature and pace of change (Asch cial interactions. Research shows that an accurate under- and Bowman 1989). Individuals who participate in stra- standing of job tasks helps employees to reduce job uncer- tegic decision-making processes are able to influence their tainty (Wanous 1977; Bedeian and Armenakis 1981; working environment in the broadest possible manner. Glisson and Durick 1988; Ting 1996). Studies also dem- Given the importance of strategic decisions to work en- onstrate that relationships with co-workers and supervi- vironments (Hickson et al. 1986), Daniels and Bailey sors affect job satisfaction (Brass 1981; Daley 1986; (1999) argue that the context within which individuals Emmert and Taher 1992). participate in decisions concerning the fundamental na- The literature increasingly reveals a relationship be- ture of their work environment may be a key moderator tween supervisor characteristics and levels of job satis- of the relationship between participative decision mak- faction (Daley 1986; Harrick, Vanek, and Michlitsch ing and job satisfaction. Therefore, the context in which 1986; Emmert and Taher 1992; Oldham and Cummings strategies are developed is likely to moderate the rela- 1996; London and Larsen 1999). For instance, Oldham tionship between participative decision making and job and Cummings (1996) find that employees produce the satisfaction (Daniels and Bailey 1999). most creative outcomes when they work on complex, Hart and Banbury (1994) indicate that different pro- challenging jobs and are supervised in a supportive, cesses of strategy development or strategic decision mak- noncontrolling way. London and Larsen (1999) conclude ing occur across organizations and even within the same that an employee’s immediate supervisor has an impor- organization. Given the complexity of strategic decision tant role in creating a noncontrolling environment that making, defining strategic goals and analyzing strategic empowers self-development. For example, supportive options are of great importance in the planning process. supervisors encourage subordinates to voice their own Based on a survey of state agencies, Berry and Wechsler concerns, provide positive and mainly informational feed- (1995) find that a participatory process, such as lower back, and facilitate employee skill development (London level staff’s inclusion in strategic plan development, is and Larsen 1999). Emmert and Taher (1992) also find one of the trends in strategic planning evolution in state social environment and job-related feedback to be im- agencies. portant determinants of job satisfaction for both public Through participation in strategic planning, employees professionals and blue-collar employees. In general, their can have a clear understanding of strategic goals and pre- research finds that people who have positive perceptions cise plans for their implementation. In addition, employ- of their job environment and who relate well with their ees can clarify their roles to reduce role ambiguity and fellow employees and supervisors display higher levels Participative Management and Job Satisfaction: Lessons for Management Leadership 233
  • 4. of job satisfaction than workers with negative perceptions Survey Measures of both. This study explores the relationship between su- Fourteen items (see appendix) were developed to mea- pervisory communications and employees’ job satisfac- sure managers’ use of a participative management style, tion. The study tests the following hypothesis: the existence of a participatory strategic planning process, Hypothesis 3: Employees who believe they have and the effectiveness of supervisory communications as effective communications with their supervisors in independent variables, and job satisfaction as a dependent their work units are more likely to express higher variable. Eleven items were measured on a five-point levels of job satisfaction. Likert-type scale, with 1 representing “strongly agree” and 5 “strongly disagree.” Three items were measured on a scale of excellent, good, fair, poor, and no opinion. Four control Research Method variables were included in the survey: teamwork experi- This study is based on data from the Clark County em- ence, union membership, position (management/nonman- ployee survey conducted in 1999. In order to improve agement), and years of employment in a department. A employees’ work environment, Clark County,3 Nevada, factor analysis indicated that the items designed to mea- has been conducting an employee survey every two years sure the three independent variables loaded on three sepa- since 1993. In 1999, Clark County conducted a survey of rate factors. As shown in table 1, the factor loadings sup- employees’ work environments and the process of strate- port the use of these items as indicators of the underlying gic planning in agencies. For the 1999 survey, Clark constructs they were designed to measure.5 County contracted with the Cannon Center for Survey Research (CCSR) at the University of Nevada, Las Vegas to collect, Table 1 Factor Analysis of the Survey Items a enter, and analyze the data (Clark (Principal Component Analysis, Varimax Method) County 1999b). The Department of Items 1. Managers’ use 2. Participative 3. Effectiveness of Administrative Services and the of participative strategic planning supervisory management style processes communications CCSR collaborated to develop the 1. A positive change in the management style 0.85 0.23 0.21 survey items considering the work 2. Manager’s efforts to increase employee environments at Clark County. The involvement 0.84 0.28 0.21 following section will discuss spe- 3. Manager’s efforts to improve communication 0.83 0.24 0.24 4. Manager’s attempt to allow employee to cific data collection procedures improve the work process 0.79 0.28 0.28 and survey measures. 1. Understanding of strategic plan 0.20 0.84 0.15 2. Role clarity in strategic plan 0.27 0.82 0.23 Sample Selection and Survey 3. Input in the development of strategic plan 0.42 0.73 0.13 Administration 1. Effective communication with supervisors 0.19 0.14 0.89 After the CCSR provided an 2. Supervisors’ listening skills 0.25 0.14 0.83 3. Clear understanding of the expectation of work 0.29 0.22 0.66 original copy of the 1999 Clark County employee opinion survey, Eigenvalues 6.12 1.24 1.05 the county’s Department of Ad- Percent of common variance 55.6 11.3 9.56 N = 1,576 a ministrative Services coordinated the printing and distribution of the surveys (Clark County 1999b). Payroll clerks distributed Independent Variables the surveys with the March 23, 1999, payroll checks and Managers’ Use of a Participative Management Style. sent reminders with the April 9 payroll checks to em- Managers’ use of a participative management style was ployees in 24 departments.4 Employees were given three defined using four indicators: (1) “Within the last two options for returning the surveys: placing them in locked years, managers in my department have made an attempt drop boxes located in County buildings; direct mailing to to allow employees to improve our own work process”; CCSR; or direct faxing to CCSR. Surveys from the drop (2) “Within the last two years, I have seen a positive boxes were picked up during the week of April 19, and change in the management style in my department”; (3) surveys by mail and fax were accepted until data entry “In general, managers in my department have made an was complete. The survey was distributed to 4,097 em- effort within the past two years to improve communica- ployees; 1,576 employees responded to the survey, for a tion”; and (4) “In general, managers in my department response rate of 38.5 percent. Response rates among de- have made an effort to increase employee involvement in partments ranged from 30 percent to 80 percent. decision-making.” 234 Public Administration Review • March/April 2002, Vol. 62, No. 2
  • 5. Use of a Participative Strategic Planning Process. ___ work and/or improvement teams.” A numerical scale, Employees’ perceptions of a participatory strategic plan- 0, 1, 2, 3, and 4 or more, was provided for this measure. ning process comprised three items: (1) “My understand- Previous research has also shown that having a professional ing of department’s strategic plan mission, vision and goals or managerial-level job is associated with higher levels of is (excellent, good, fair, poor, no opinion)”; (2) “I feel that job satisfaction (deLeon and Taher 1996; Lewis 1992). I had input in the development of my department’s strate- Using a dummy variable, the variable of position was mea- gic planning process”; and (3) “I understand my role in sured by the following indicator: “I am on the Manage- accomplishing the goals in my department’s strategic plan.” ment or Executive Plan.” The study controlled for union Effective Supervisory Communications. Supervisors’ membership among participants using a dummy variable. skill in communication was defined using three indicators: The study also included years of work in a department as a (1) “If I have a suggestion to make, my supervisor (the control variable: “How many years have you worked in person I directly report to) will listen, even if he or she your department?” (0–3 years, 4–7 years, 8–10 years, more does not agree with me”; (2) “My supervisor and I com- than 10 years). municate well with each other about work related topics”; and (3) “I have a clear understanding of what is expected of me in my work.” Results and Findings Table 2 provides descriptive statistics and correlation Dependent Variable coefficients for all variables. The majority of respondents Job satisfaction. Job satisfaction comprised four items were from nonmanagement positions (94 percent). Among from the survey instrument: (1) “Overall, compared to other the survey respondents, only 203 (12.9 percent) had par- places I could work, Clark County is: excellent, good, fair, ticipated in teamwork more than three times. Thirty-eight poor, no opinion”; (2) “Compared to other places I could percent of the survey respondents were union members. work, I feel my career opportunities at Clark County are: The years of work at the department were distributed as excellent, good, fair, poor, no opinion”; (3) “My job pro- follows: 0–3 years (39 percent), 4–7 years (26 percent), 8– vides me with a sense of accomplishment”; and (4) I re- 10 years (11 percent), and more than 10 years (23 per- ceive the recognition that I deserve for my work. The co- cent). Managers’ use of a participatory management style efficient alpha for this scale was 0.81. correlated positively with job satisfaction and a participa- tive strategic planning process. As expected, effective com- Control Variables munication with supervisors was positively correlated with Four control variables were included in the survey: team- job satisfaction and a participative strategic planning pro- work experience, union membership, position (manage- cess (see table 2). ment/nonmanagement), and years of employment in a de- The results of the ordinary least squares multiple re- partment. Teamwork experience was used as a control gression analysis appear in table 3. As predicted, manag- because it has been shown to positively influence job sat- ers’ use of a participative management style, participative isfaction (Cordery, Mueller, and Smith 1991; Kirkman and strategic planning processes, and effective supervisory Rosen 1999). The following item was used for the team- communications were positively associated with high lev- work experience: “In the past two years, I participated in els of employee job satisfaction. Thus, hypotheses 1, 2, Table 2 Descriptive Statistics and Correlations a Variable (range) Mean (N) Stan. dev. 1 2 3 4 5 6 7 8 1. Job satisfaction (1–5) 2.38 (1,576) 0.82 1 2. Managers’ use of a participative management style (1–5) 3.09 (1,538) 1.05 .65** 1 3. Participative strategic planning (1–5) 2.93 (1,572) 1.02 .54** .63** 1 4. Effective communications with supervisors (1–5) 2.18 (1,576) 0.89 .60** .57** .46** 1 5. Teamwork experience (0–4) .97 (1,521) 1.26 –.18** –.26** –.37** –.16** 1 6. Management position (0–1) .02 (1,542) 0.24 –.17** –.20** –.29** .10** .24** 1 7. Union membership (0–1) .38 (1,551) 0.48 .13** .14** .14** .11** –.05* –.15** 1 8. Years of work (1–4) 2.19 (1,555) 1.18 .07** .05 –.01 .01 .13** .09** .13** 1 a N = 1,576 **Correlation is significant at the 0.01 level (2-tailed). *Correlation is significant at the 0.05 level (2-tailed). (Years of work, 1= 0–3 years, 2 = 4–7 years, 3 = 8–10 years, 4 = more than 10 years; Management position, 1= yes, and 0 = no; Union membership, 1 = yes, and 0 = no.) Participative Management and Job Satisfaction: Lessons for Management Leadership 235
  • 6. and 3 were supported in this study (see table 3). employees who have worked in their department for a The findings in table 3 indicate that managers’ use of a shorter period are more likely to express higher levels of participative management style is significantly associated satisfaction with their jobs. with employee job satisfaction. The results show that em- ployees who believe in managers’ use of a participative management style report a higher level of job satisfaction Implications and Discussion than employees who do not believe in managers’ use of Although researchers point out there is no consistent participative management style in their work unit (β = .36, relationship between job satisfaction and individual per- p < .001). Several studies (Wagner 1994; Bernstein 1993; formance (Brayfield and Crockett 1955; Iaffaldano and Bluestone and Bluestone 1992; Hoerr 1989; Peterson and Muchinsky 1985), there is consistent evidence that low job Hillkirk 1991) show that participative management prac- satisfaction results in absenteeism, reduced commitment tices have positive effects on performance and job satis- to organizations, turnover, and stress (Carsten and Spector faction. Results from the present study lend further sup- 1987; Locke 1976; Tett and Meyer 1993; Hackman and port to this conclusion. Therefore, the present study Oldham 1975; Farrell and Stamm 1988; Brooke and Price provides robust support of hypothesis 1. 1989; Barling, Wade, and Fullagar 1990; Kemery et al. The regression analysis also finds that a participative 1985; Kemery, Mossholder, and Bedeian 1987; Pierce, strategic planning process is significantly associated with Rubenfeld, Morgan 1991; Eby et al. 1999). Hence, it is job satisfaction (β = .15, p < .001), suggesting that em- important for researchers to clarify the factors affecting ployees who believe they have input into strategic plan- employees’ job satisfaction in the context of organizational ning are more likely to report a higher level of job satisfac- environment changes. tion than employees who do not. Therefore, hypothesis 2 This study examined participative management and job was supported in this study. The regression results also satisfaction in local government agencies. It extended re- support hypothesis 3. Employees who believe they have search on the relationship between participative manage- effective communications with their supervisor express a ment in the context of strategic planning process and job higher level of job satisfaction than those who do not be- satisfaction. What are the implications of the findings of lieve they have effective communications with their super- this study for public management? The essential implica- visors (β = .32, p < .001). This result is consistent with tion is that executive leaders and managers should become previous research on supervisory relationships and levels aware of the importance of manager’s use of participative of job satisfaction (Daley 1986; Harrick, Vanek, and management, employees’ participation in strategic plan- Michlitsch 1986; Emmert and Taher 1992; Oldham and ning processes, and the role of effective avenues of com- Cummings 1996; London and Larsen 1999). Among the munication with supervisors. When agencies implement control variables, only the years of work in a department leadership development programs or other training for was significantly related to job satisfaction. It shows that managers and supervisors, they should consider including participative management and employee empowerment Table 3 Results of Regression Analysis techniques as key components of the programs. (Participative Management and Job Satisfaction)a In addition, the study’s findings demonstrate that a par- Independent Standardized Standard t ticipative strategic planning process positively affects em- variables regression error ployee job satisfaction. To the extent that job satisfaction coefficient (β ) reduces absenteeism and turnover, the study’s findings sug- Managers’ use of a participative gest that employee participation in strategic planning con- management style 0.36 0.03 13.03*** Effective supervisory communications 0.32 0.02 13.38*** tributes to organizational effectiveness. As Daniels and Participation in strategic planning Bailey (1999) indicate, individuals who participate in stra- processes 0.15 0.03 5.63*** tegic decision-making processes are able to influence their Control variables work environments in the broadest possible ways. In this Teamwork experience 0.01 0.02 0.41 Management position –0.03 0.09 –1.65 respect, strategic planning procedures in agencies should Union membership –0.00 0.04 –0.14 include the employee as a key stakeholder who is neces- Years of work at department 0.04 0.02 1.94* sary to successful implementation of the strategic plan. Constant 0.04 –1.30 More generally, employees’ clear understanding of the R2 0.501 objectives of the strategic plan and their role within it af- Adjusted R2 0.498*** fect the success of strategic planning in public agencies. F 190.53*** Effective communications between supervisors and a N = 1,576 ***p < .001 employees should be emphasized to facilitate the process *p < .05 of strategic planning among executive leaders, managers, 236 Public Administration Review • March/April 2002, Vol. 62, No. 2
  • 7. and front-line employees. Effective communications be- sures for employees’ participation in strategic planning tween supervisor and employee are a significant factor in processes in government agencies. informing employees of the objectives and job expecta- Several limitations of the present study should also be tions under existing or, particularly, new organizational noted. First, the measures of participatory management structure. Ting (1996) finds that task clarity is an impor- used in this study were perceptual rather than objective. tant determinant of job satisfaction. The present study also To analyze managers’ leadership of participative manage- found that employees’ effective communication with their ment, more empirical data based on in-depth interviews supervisors is significantly associated with job satisfac- and participatory observation should be collected beyond tion. Supervisory communications might be a primary the survey method. Second, the present study did not col- means to link the participative strategic planning process lect information regarding gender, family structure, edu- to employees’ job satisfaction. cation, and age. Researchers have demonstrated that de- None of the above suggestions can be easily accom- mographic variables, including gender, education, and age, plished without organizational leaders’ commitment to are significantly related to job satisfaction. Findings sug- changing organizational culture from the traditional pat- gest that older, educated, male employees in full-time po- terns of hierarchical structure to participative manage- sitions are more satisfied than younger, less educated, fe- ment and empowerment in agencies. Several studies male, and part-time employees (Mottaz 1988; deLeon and (Northouse 1997; Tichy and DeVanna 1990; Zajac and Taher 1996). Furthermore, to analyze the impact of work– Al-Kazemi 1997) have emphasized transformational lead- family conflict on employee job satisfaction, family struc- ership, in which leaders actively respond to fundamental ture should be considered in future research. The future changes in the environment to engage in programs of study should include these variables as individual charac- learning, change, and renewal in the organization. To re- teristics affecting job satisfaction. spond to the new needs of employees and the environ- In conclusion, the findings reported in this study show mental changes of the organization under strategic plan- how managers’ use of a participative management style, ning, executive leaders and managers should consider use of participative strategic planning processes, and ef- several efforts to facilitate participative management. For fective supervisory communications affect job satisfaction. example, the regular distribution of newsletters and Thus, the study suggests that emphasizing participative memoranda can be expected to provide employees with management and fostering effective supervisory commu- information on strategic planning procedures. Second, nications can enhance employee job satisfaction. In this management can set up regular focus group meetings with regard, organizational leaders’ commitment to changing employees and supervisors from different work units to organizational culture from the traditional patterns of hi- discuss issues of strategic planning related to operational erarchical structure to participative management and em- system changes, relationships among work units, and or- powerment should be emphasized in the public sector. ganizational effectiveness. Training programs for man- agers and supervisors that emphasize participative man- agement and effective communication skills would be Acknowledgments expected to facilitate implementation of strategic plan- The author thanks Debra Drake at Clark County and col- ning, as well as participative management in agencies. leagues at the University of Nevada, Las Vegas, for their help in this research, as well as the comments of anonymous reviewers. Conclusion This study examined the positive relationship between participative management and job satisfaction in local gov- ernment agencies. It also demonstrated the positive rela- tionship between a participative strategic planning process and job satisfaction. Furthermore, the study emphasized effective supervisory communications as a factor affect- ing employee job satisfaction. Results from this study sug- gest several important directions for future research. For example, multiple studies of the association between par- ticipative management and job satisfaction in the public sector will be necessary to validate the present results and to explore the diverse job-related factors that may influ- ence job satisfaction. Researchers could also develop mea- Participative Management and Job Satisfaction: Lessons for Management Leadership 237
  • 8. Notes 1. Especially since the Government Performance and Results and the importance of integrating their strategic plans and Act in 1993, federal agencies have emphasized their efforts performance measures into their daily business operations on strategic planning and performance measurement. (Drake 1999). The process of strategic planning in Clark 2. Clark County has established a variety of organizational plan- County reveals a traditional top-down communication flow ning and quality initiatives including Total Quality Manage- in agencies (Clark County 1999b). ment and strategic planning and performance measurement 3. Clark County, with a population of 1,040,688 (60 percent of over the past decade (Clark County 1999a; Drake 1999). In state population), is the most populous of Nevada’s 17 coun- 1997, the county’s Department of Administrative Services ties (Clark County 1999a). With annual expenditures of ap- and the Board of County Commissioners proposed the proximately $1.8 billion, Clark County has one of the most County-wide Strategic Plan. The county manager formed a complex and distinctive configurations (Clark County 1999a). County-wide Strategic Planning Team and developed a model The county comprises of 7,927 square miles and includes and a process that would provide for the consistent develop- five incorporated cities, Las Vegas, Henderson, North Las ment of strategic plans and performance measurements for Vegas, Boulder City, and Mesquite; 13 unincorporated towns; the departments within Clark County government. Each de- one school district; four library districts; one urban and two partment was required to appoint a strategic planning liai- rural fire districts; one sanitation district; one urban and three son, who acted as the point of contact for all strategic plan- rural water districts; and 11 judicial townships. ning issues. Training classes were provided to all levels of 4. Participant departments in the survey: Administrative Ser- management and strategic planning liaisons on the strategic vices, Airport, Assessor, Building, Business License, Center planning model and process. In 1999, based on a consistent for Enterprise Information Technology, Clerk, Comprehen- model and incorporating results-focused performance mea- sive Planning, Comptroller, Constable-Henderson, Constable- surements, every department submitted strategic plans. When Las Vegas, Coroner, County Commission/Finance, Family and each department completed its strategic plans, workshops Youth Services, General Services, Human Resources, Inter- were held for all directors, assistant directors, managers, and nal Audit, Justice Court-Las Vegas, Public Administrator, strategic planning liaisons to discuss strategies and approaches Public Works, Recorder, Sanitation, Social Services, and Trea- for implementing their strategic plans. 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  • 11. Appendix Items were measured on a five-point Likert-type scale, with 1 representing “strongly agree” and 5 representing “strongly disagree” unless otherwise noted. Survey Measures Manager’s use of a participative management style (coefficient alpha: 0.93) 1. Within the last two years, managers in my department have made an attempt to allow employees to improve our own work process. 2. Within the last two years, I have seen a positive change in the management style in my department. 3. In general, managers in my department have made an effort within the past two years to improve communication. 4. Managers in my department have made an effort to increase employee involvement in decision making. Participative strategic planning processes (coefficient alpha: 0.83) 1. My understanding of department’s strategic plan mission, vision and goals is (excellent, good, fair, poor, no opinion). 2. I feel that I had input in the development of my department’s strategic planning process. 3. I understand my role in accomplishing the goals in my department’s strategic plan. Supervisory communications (coefficient alpha: 0.80) 1. If I have a suggestion to make, my supervisor (the person I directly report to) will listen, even if he or she does not agree with me. 2. My supervisor and I communicate well with each other about work related topics. 3. I have a clear understanding of what is expected of me in my work. Job satisfaction (coefficient alpha: 0.81) 1. Overall, compared to other places I could work, Clark County is: excellent, good, fair, poor, no opinion. 2. Compared to other places I could work, I feel my career opportunities at Clark County are: excellent, good, fair, poor, no opinion. 3. My job provides me with a sense of accomplishment. 4. I receive the recognition that I deserve for my work. Control Variables 1. Teamwork experience: In the past two years, I participated in ___ work and/or improvement teams. Numerical scales were provided for this measure: 0, 1, 2, 3, 4, or more. 2. Position: I am on the Management or Executive Plan (Yes, No). 3. Union membership: I am a member of a collective bargaining unit (union) (Yes, No). 4. Years of work at the department: How many years have you worked in your department? (0–3 years, 4–7 years, 8–10 years, more than 10 years). Participative Management and Job Satisfaction: Lessons for Management Leadership 241