Decision type, participative decision making (PDM), and organizational behavior: An experimental simulation

Abstract

The present study tested hypotheses derived from the path‐goal theory of leadership concerning attitudes and behavior in an organizational change situation. Using an experimental simulation, the method of payment for 199 coding workers was changed from hourly to piece‐rate, either by participation or initiating structure (i.e., direction). Results supported the influence of the type of change decision on change acceptance. Initiating structure in the strategic change decision (whether or not to implement a planned change) and participation in tactical decisions (how to implement the change) both increased change acceptance. An interaction effect was also observed with subjects in the directive strategy with participation tactics combination showing the largest change acceptance mean. However, initiating structure or participation in both decision types had minimal effect on performance. Theoretical and practical implications of the results were discussed.