Site-based decisionmaking programs offer important opportunities for school systems; however, the risks involved are significant and the decision to embrace the concept at the local level is a highly complex one. With site-based decisionmaking programs, teachers are directly involved in making decisions that affect the whole school, not merely their individual classrooms. Thinking in both the private sector and in the education community suggests that organizational effectiveness is enhanced when employees responsible for implementing decisions are given some measure of authority in their creation. This publication examines: (1) the history of employee participation programs in America; (2) the use of site-based decisionmaking programs in public education; (3) the potential advantages and disadvantages of employee decisionmaking participation programs for local school districts; (4) the relationship of site-based decisionmaking programs to the collective bargaining process; (5) the legality of site-based employee participation programs; and (6) practical suggestions for deciding when to introduce site-based decisionmaking programs and how to structure them. Also provided are examples of employee participation programs in education from Denver, Seattle, Fairfax County (Virginia), Florida, Iowa, and Indiana. (61 references) (KM)