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It has been explained to Owners that the areas where Top to down decisions are mandatory, that can also be achieved through motivation and technically within this participatory management.
Try doing a 'Balancing act' till the time you have enough positive results to showcase to the management attributing these as the outcome of the "participatory management that you have successfully practiced and employed at the workplace.
The art of orchestrating improvements in the midst of internal pressure, often much from upper management is the ultimate test.
However, there is only so much one person can do and tolerate once all energy is spent and pleading for tangiible changes falls on deaf ear.
It is for the owners of the company to decide how it is run. (Well, actually, it's the Directors, but that's a detail.) The function of the COO is
1) Advise the owners on the best way to do things, and show benefits and costs of various approaches
2) Do their best to implement the approach chosen by the owners
3) Quitely implement structures and procedures to mitigate the damage caused by the owners' foolish decisions
4) Groom a successor
5) Look for a new job
To prove in small steps that the particpative management is more effective