Power Equalization, Participative Decision-Making, and Individual Differences

Abstract

This study examines the hypotheses that (a) subordinates' perceptions of participation in decision-making (PDM) is positively related to their perceived and desired power equalization (PE), in terms of hierarchical power differentials (HPD) between subordinates and superiors; (b) low-level participants' perceptions of the distribution of power within the organizational hierarchy reflect a zero-sum notion of power; and (c) subordinates' desire for participation and ability (in terms of education) moderate the relationship between PE and PDM. A sample of three hierarchical groups was selected from 40 stores of a large, retail drug company in the midwest: 40 store managers, 59 assistant managers, and 153 nonmanagerial employees. The results provide support for all three hypotheses. Implications of the findings for the exercise of power and effective management styles are discussed.