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]
Original source: https://en.wikipedia.org/wiki/Participatory organization.
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