M.Phil. (Business Management) / This dissertation is a theoretical study of participatory management. According to research, companies tend to neglect the employees as one of their most valuable assets in favour of the more efficient use of raw materials and capital assets. The primary goal of the study was to show that by the effective implementation of a participatory management program, it will lead to certain advantages for both the management and the employees. The first section of the study focuses on the formulation of a definition for the term "participatory management". The -connection between motivation and leadership with participatory management are shown and identified. In the following section of the dissertation the different types of application of participatory management are discussed and practical examples are shown. A practical, yet simple model of participatory management are shown and discussed in detail. The third section of the study refers to the successful implementation of a participatory management program. The barriers in the way of successful implementation and the prerequisites that both the management and the employees have to comply to, to ensure a successful implementation of a participatory management program, are discussed in detail. The resulting advantages of a successful program for both the management and the employees are shown. In the final chapter certain conclusions based on the theoretical study of participatory management are made. One of the most important conclusions is that the success of a participatory management program depends on the support from management.