Aparticipatory organization is an organization which is built based onpublic participation rather than their contract obligations.[1][2]
Different types of participatory organizations are possible includingproduction companies,membership organizations (such astrade unions), andco-operatives. They can be legally registeredformal organizations or may object to state regulation and be considered aninformal organization.[3]
Participatory organizations can have different levels of participation, ranging from completeeconomic transparency, toparticipatory management, and ultimatelylabor management.[4]
Participatory organizations are negatively affected by thefree-rider problem, can be inefficient, and lack clear leadership and strategy.[5]
