The subject matter of this papcr is the significan-ce of management by participation İroni the view-point of management funetions. Due to the differen-ces in the attiludes taken by the parties, a coneencus on this term is not achieved. Whether the practice of management by participation has proved to be ef-ficient means for inereasing the overall performance of the management is stili a point of controversy. In this article we vvill discuss this matter adopting the view that management by participation leads to so-me definitely positive results.