This review paper investigates how participative leadership is understood and practiced across Algeria’s healthcare, education, industrial, and local governance sectors. Using an integrative literature review approach, it brings together national and international studies to evaluate both the strengths and limitations of participative leadership within the Algerian institutional context. The findings show that participative leadership can strengthen motivation, spark innovation, and build organizational trust. However, its impact is often held back by centralized authority, rigid bureaucracy, and weak civic infrastructure. Drawing on insights from multiple sectors, the paper proposes a hybrid leadership model that blends Likert’s structural openness, Vroom and Jago’s situational adaptability, and Bass and Riggio’s transformational vision. Tailored to Algeria’s governance challenges, this model highlights the importance of civic education, leadership development, and decentralization as enabling conditions. Ultimately, the review offers a context aware framework to guide future research, inform policy, and support more inclusive and responsive governance in Algeria and other transitional systems.