Employee Participation: A Motivational Factor For Organisational Growth

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM

Chapter One

1.0 Introduction

1.1 Background Of The Study

People can be the firm’s most important resources to manage. They(employees) can also be the most challenging resources to manage well. There is a popular adage, which says that two heads are better than one. Employees who are motivated by participating in decision making of an organisation will increase effort, which subsequently improves efficiency and productivity. It reduces the cost of monitoring employees and it leads to increased commitment (Doucouliagos 1995).

Moreover, in the business world, managers are faced with a lot of problems and tasks to be performed in organisation. Although, it has been argued that the effect of size on levels of employee participation is unclear(Heller et al,1998),most findings shows that larger organisations adopt more participative management practices than do smaller organisation. The previously mentioned longitudinal survey of employee involvement found a significant positive relationship between organisational size and employee participation practices (Lawler et al,1995).

The importance of employee participation as a business strategy was first stressed in the late 1920s and early 1930s. The Hawthorne studies (Mayo,1933;Roethlisberger and Dickson,1939)gave rise to an increasing interest in the human determinant of productivity. The ‘human relation’ approach to management emphasized the importance of communication between employees and their superiors.

The lack of strong empirical support for these theories, however turned initial enthusiasm into mild skepticism (Anthony, Perrewe and Kacmar,1993).Due to human limitations the study of management has advanced into more humanistic aspect of life and this has further being strengthened by the urge to discover and know more about the individuals working in an organisation.

As a result of certain concept like participation especially as it relates to organisational performance have attracted the attention of many psychologists, sociologists and management parishioners. Shokan O.O,(2000) defines participation to mean having a say in the matters affecting their job and destiny.

In conclusion,from my own point of view of this study,managers and the organisation must understand that participation of employees in an organisation even in the decision making of the organisation is a major motivating factor to improve organisation productivity. A final contribution of this study is that it provides support for the conclusion of Cotton et al (1988) and Black and Gregersen (1997)that participation should be studied as a multi dimension construct.

1.2 Statement Of The Problem

The concept of employee participation has been misunderstood by many since the involvement from the field human relations.

In view of this, the problem of this study is to examine the extent to which employee participation can be used as a motivational factor for organisational growth. This is because many organisations are ignorant of the fact that employee participation could even be more important than money in motivating people to work willingly and well.

1.3 Scope Of The Study

The area of concentration for this research work is to identify different levels of employee participation and process of identifying the importance employee participation even in decision making of the organisation.

1.4 Objective Of The Study

The objective of the study is to know;

  1. The relevance of employee participation in the decision making of an organisation.
  2. What organisation derives or benefits for allowing participation of employee in an organisation.
  3. What employees derive or benefit when they are allowed to participate in decision making of the organisation.
  4. How participation brings out the best out of the employees.
  5. How employees participation contribute to high level of productivity.

1.5 Purpose Of The Study

The purpose of this study is to know;

  1. To know organisation factor that influences the participation of employees.
  2. To know the effect of employee participation in an organisation.
  3. To know the relationship that exist between employer and employee.
  4. How an organisation can achieve its aims with the support from the employees.
  5. To know whether employee participation is the degree to the organisation productivity.

1.6 Definition Of Key Terms

1. Motivation:

This is the ability to do something

2. Participation:

Having a say in the matters affecting their job and destiny.

3. Organisation:

This is a process of dividing work into convenient tasks or duties of grouping such duties in the form of posts of delegating authority to each post.

4. Manager:

A manager is a person who controls people and other activities in an organisation to achieve a set predetermined goals.

5. Employees:

These are group of people working in an organisation.

6. Incentives:

This is a form of encouragement given to employees to increase their performance.

7. Need:

A need is the lack of something. The gap between what is and what one desires.

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