Abstract

In recent years, there has been a convergence of democratic theory and management theory regarding the importance of participation in strategic decision making. In both the public and private sectors, the goal of increasing participation has been sought as a means to: (1) enhance the wisdom and effectiveness of decision-makers in crafting policy, and (2) secure the support of key actors in an organizations environment. Reform efforts, such as reinventing government and re-engineering the corporation, often have a goal of increasing participation by changing the structure of the organization. Despite the apparent enthusiasm for participation, it is not as easy to achieve as it might seem. Studies of the strategic decision-making process suggest that structural adaptations are not a particularly effective route to increase participation. In this study I examine participation in the strategic decisions of public and private organizations. A survey of 368 senior managers in public and private organizations is used to examine a model that relates participation to the decision type, the structure of the organization and the environment in which the decision is made. In doing so, I also examine the influence of internal (employees) and external (elected officials) participation in the decision processes of public and private organizations. The degree to which a decision falls under public and legal scrutiny, and the amount of “red tape” found in the organization prove to be critical factors influencing the amount of participation.