Participative decision making (PDM) and performance: An examination of possible mediating processes

Job-related stress has been found to lead to negative individual and organizational outcomes such as decreased productivity, high absenteeism, and reduced decision-making effectiveness. Work is becoming more stressful, and as a result, organizations must find ways to reduce stress and the negative outcomes associated with it. This study examined participative decision making (PDM) as one strategy for reducing job-related stress. It tested a model that examined two potential pathways through which PDM affects job performance. Participants were 144 employees working in a biotechnology company in Southern California. Data were collected through a paper-based survey at two points in time. with two months separating measurement at Time I and Time II. Data on independent variables were collected at Time I and data on outcome variables were collected at Time II. Findings revealed that PDM reduces stress through increasing perceived control and decreasing role stressors (role conflict and role ambiguity). However, perceived control does not moderate the relationship between role stressors and psychological stress. In addition, no significant relationship was found between psychological stress and self-reported job performance. Post-hoc analyses did not reveal a unique relationship between PDM and psychological stress or between PDM and job performance. The results of this study support the hypothesized model, which proposed that the relationship between PDM and performance is not direct, but rather mediated by intervening mechanisms, especially perceived control and role stressors. These results are important from both a theoretical and an applied standpoint. First, the findings help researchers better understand the pathways through which PDM affects stress and performance—a relationship which has been not been clearly understood. Second, findings offer support for practitioners, encouraging implementation of cost effective interventions for increasing opportunities for PDM which can then reduce psychological stress and the negative outcomes associated with it.