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Consultation, as long as it is genuine, can improve the performance of the workers in two ways:
1) By consulting the workers the management discover how to improve their performance, and can make changes. For example, if you ask the workers what makes their job difficult, you might discover that some of the administration of the company is very inefficient. The management can then create a new system of administration.
2) When people are consulted, they feel more involved in the activity. Workers who are consulted tend to be better motivated and more likely to make helpful suggestions to the management. Better motivation means fewer silly mistakes, fewer days lost to sickness, etc.
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