A participatory organization is an organization which is built based on public participation rather than their contract obligations. [1] [2]
Different types of participatory organizations are possible including production companies, membership organizations (such as trade unions), and co-operatives. They can be legally registered formal organizations or may object to state regulation and be considered an informal organization. [3]
Participatory organizations can have different levels of participation, ranging from complete economic transparency, to participatory management, and ultimately labor management. [4]
Participatory organizations are negatively affected by the free-rider problem, can be inefficient, and lack clear leadership and strategy. [5]