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Definition: Participative Leadership is a leadership style that aims at involving all members of an organization, department or team in identifying essential goals as well as in developing procedures, approaches or strategies for reaching those goals.
Rather than issuing orders or assignments as in other leadership styles, a participative leader has a facilitating leadership style. The employees are encouraged to be creative and demonstrate their abilities and talents that would not be made apparent otherwise. The initial decison making process can take more time in PL, but due to the increased employee ownership, this time can be easily recovered during implementation of the decision.
See also Theory X and Y.