The Effect Of Employee Participation In Decision Making On Productivity

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


This study is primarily concerned with findings out The Effect Of Employee Participation In Decition Making On Productivity . Six research questions were constructed to guide the study. The subject consisted to Chief Executives, Middle and operational level managers of private and public organisations.

The questionnaire used for the survey contained twenty-two questions. The data collected were analyzed, Using Yaro Yamane and burleys proportional allocation formula.

The result of the research revealed that high productivity has a great effect on worker over – all behaviours and productivity. It was clearly dis – covered that high productivity schemes in organisations have a great effect on worker lateness to work, absenteeism, employee hospital bill, teamwork, initiative and work efficiency, among others.

The implication of the research included among other things that employees of labor should pay more attention to high productivity programs since they contribute sufficiently to optimal productivity of organisations. It is strongly recommended that organisation are yet to introduce high productivity programs should do so without further delay. The summary of this work also recommended a further research in an attempt to finding a total disclosure of organizational reward on the productivity of workers In Nigeria.

Chapter One


1.1 Background Of The Study

It should be recanted that a decision is a choice where by a person forms a conclusion about a situation. Costello, and zalkind, (1963:334), confined the term decision making, to a choice process, choosing one from among several possibilities.

However, decision theory in Costello, et al (1963: 387) largely considers decision making as the process of making a single choice among course of action at a particular point in time, this depicts a course of behavior about what must be done or vice versa. Decision is however, the point at which plans, policies and objectives are translated into concrete actions. Planning engenders decisions guided by company policies and objectives, procedures and programmes. The aim of decision making is to channel human behavior towards a future goal.

Decision-making is however, one of the most germane activities of management. It has been the preoccupation of all the management of multifarious organization ranging from small-scale organization to multinational corporations.

Decision in an organization involves the process of taking action by some official person or body to approve, modify or reject a preferred position on an issue or group of issues. This could in the form of enactments of legislation or an issuance of an executive order in an organization. This process involves the art of day -to -day decisions that are applied in the running of an organization.

For decision to be assumed to be effective there must exist competing alternatives. Before effective decisions are taken some proposals will be rejected, others accepted, still others modified. The differences will be narrowed: bargains will be struck until ultimately, in some instances, the decision will be only a formality. In other words, the question will be in doubt until the votes are counted or the decision is announced.

Managers many at times consider decision making to be the heart of their job in that they must always choose what is to be done, who will do it, when, where and most of the time how it will be done.

Traditionally, managers influence the ordinary employees and specifically, their immediate subordinates in the organization. This has resulted in managers making unnatural decision even in areas effecting their subordinates.

In Germany, around 1951, a law enacted which provides for code termination and requires labour membership in the supervisory board and executive committee of certain large corporations. However the participation of labour in decision making process resulted to relatively and peaceful labour management relations.

Additionally, the Japanese management uses decision making by consensus in which lower-level employees initiate the idea and submit it to the next higher-level unit it reaches the desk of the top executive. If the proposal is approved, it is returned to the initiator for implementation.

It is in this context, that the researcher wishes to assess the impact of employees participation in decision making on organizational productivity in Nigerian public sector organizations, using Nigeria Bottling Company imo State Branch as a case study.

1.2 Statement Of The Problem.

There has been lots of controversy as to whether an employee should participate in decision making or not. Some writers argued that employees should contribute in making decision more especially where it affects them or their jobs. It is expected that such participation will serve as training and testing ground for future members of upper management.

In Nigeria, experts that refuted the above assertion see the arrangement as a symptom of mal- organization. They maintained that, qualified, reasonably, honest and company oriented individuals are not available at these lower organizational levels. But, the big question is, are qualified individuals really available? All these underlay the need for an investigation study.

1.3 Objective/Purpose Of The Study

The general purpose of this empirical study is to assess The Effect Of Employee Participation In Decision Making On Productivity in public sector organization in Nigeria with reference to Nigeria Bottling Company Imo State Branch.

The specific objectives are:-

  1. To assess the impact of employee participation in management decision – making of Nigeria Bottling Company Imo State Branch.
  2. To ascertain the impact of employee participation or non-participation in management decision on productivity of the organization.
  3. To make recommendations based on the research findings.

1.4 Research Questions

In a view to accomplishing this research work effectively the research poses the followings.

  1. Do management staff make decision without pre and post discussion and consultation with employees?
  2. Do management change decision when rejected by employees?
  3. To what extent do employee participate in decision making?
  4. How often do employees meet to discuss with managers?

1.5 Research Hypothesis

The researcher formulates the following hypothesis based on the objectives and problems of this research work.

Hypothesis I
  • Ho: Management staff makes decision without prior discussion and consultation with employees.
  • Hi: Management staff make decision with prior and consultation of the employees.
Hypothesis II
  • Ho: That the management of Nigeria Bottling Company imo State Branch does not change decisions when rejected by employees.
  • Hi: That the management of Nigeria Bottling Company imo State Branch change decisions when rejected by employees.

1.6 Significance Of The Study

This research work will be relevant to the mangers and employees of Nigeria Bottling Company imo State Branch. It will also be beneficial to other public sector organization in Nigeria- it will also be of prodigious importance to government, academicals potential and future researchers on the issue of employee participation in managerial decision making.

This empirical study is also germane to the researcher since it is a partial requirement for the award of Degree in Business Administration.

1.7 Scope Of The Study

Economic development activities are usually hampered in a country with high rate oflabour disagreements; since productivity/national output will be low, inflation and rate of unemployment will be high while there will be an increase in social vices. Since labour disagreements originate from the exclusion of employees in decision making in matters that affect them, such disagreements, can be prevented through the adoption of a personnel management approach(whether direct or indirect) that guarantees employees participation in decision making in matters that affect them.

1.8 Limitations Of The Study

A work of this nature is not easy to consummate or accomplish. And, as a result of financial problem, time constraints, apathy on the part of respondents and bureaucratic procedures involved in releasing data seriously affected the study.

1.8 Definition Of Terms


West Africa Examination Council


National Examination Council Organization


Anambra Motor Manufacturing Company

4. CKD

Completely Knocked Down

5. B.SC.

Bachelor In Science

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