The purpose of this study was to determine if there is a relationship between participative management and perceived institutional effectiveness in North Carolina community colleges. Along with determining this relationship, the study endeavored to determine perceptions, in the form of desired items, that employees want to see in their colleges that have a bearing on both participative management and institutional effectiveness. This study gathered usable data from 277 (76.9%) respondents assigned to administrative, faculty, and support staff positions. These respondents were a representative sample of the population. A significant relationship was found between participative management and institutional effectiveness. Seventeen of the 23 desired effectiveness practices and seven of the ten desires participative practices included in this study were found to be practices that employees want to see in their colleges. It was also found that length of service in current position does not significantly influence perceptions relative to institutional effectiveness. Although the management of community colleges cannot be entirely relinquished to employees, institutions whose leaders encourage participative management may experience enhanced institutional effectiveness. The expertise of the faculty and staff should be coupled with the talents of administrators in arriving at the proper blend of what is and what ought to be in community colleges. / Ed. D.