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The paper presents the results of research conducted among 46 owners/managers and 61 employees of companies belonging to the group of small and medium-sized enterprises. The extent and forms of employee participation in the assessment of both of these groups of employees were analysed. The results show the limited scope of participation in the analysed group of companies and significant differences in the perception of the needs of participation and its actual scope. Employees can rarely or never suggest new solutions or participate in solving the problems of the organization. Part of entrepreneurs claimed that such opportunities exist, but these claims were only declarative and were not confirmed in the management practice. Despite the somewhat critical assessment of the scope of participation, most employees are satisfied with their work and the way of managing the company in which they work. The entrepreneurs are aware of the positive consequences of the use of participatory management, however, probably because of the habits and preferred management style, they apply it to a limited extent. Differences in evaluations of participation by employees and employers and undoubtedly influenced by the situation on the labour market, which often inducts employers to treat their workers “objectively” and results in the dominance of the need for job security over other needs (including the need to experience the influence) of employees.
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