The article analyses the leadership of managers of educational institutions in developing participatory decision-making in organisational

management. The aim of the study is to empirically reveal how leaders lead in constructing and implementing participatory

decisions, and what significance they acquire in management practice. The study is based on a phenomenological approach, applying

a qualitative research strategy and semi-structured interviews with six managers of educational institutions. The results reveal that

participatory decisions function as process-based management tools that strengthens the organisational culture, trust and employee

engagement, contributing to the effectiveness of management. However, their development is constrained by structural factors in

the educational system, time limitations, and internal cultural restraints, such as employee passivity. It was found that the leader’s

leadership is an essential factor determining the success of participatory management in the face of structural contextual and internalorganisational PDM risks.