Employees Participation In Decision Making And Organizational Productivity

Project and Seminar material for Public Administration

Employees Participation In Decision Making And Organizational Productivity


Abstract


The major objective of this study is to test the influence of employee’s participation in decision making and organizational productivity, and to explore the relationship between employee involvement in decision making and problem solving and perceived organizational performance. The data generated were statistically analyzed using descriptive analysis. The results revealed that the degree of employee participation in decision-making is very low and only senior managers (department managers) have access or rights to participate in the decision-making process. However, those who do not have opportunities to influence decisions made at the workplace manifest a great desire to participate in the decision-making process, and for a considerable number, this tends to be concerned with decisions daily affecting their own job. It was noted that the main obstacles to the participative process within the public sector are: a lack of interest, a lack of initiative and support to the participation process from employers, an authoritarian approach via centralization system of authority and control, managers especially general directors who are unwilling to share decision-making power with employees, manager’s enterprise hesitates to accept employees as valuable partners in making decisions, and inadequate understanding of employees concerning their new roles in management of their enterprises.


Chapter One


Introduction

1.1 Background of the Study

Employee participation in decision making has been accepted as a managerial tool for improving organizational performance by striving for the shared goals of employees and organization. This is actualized by way of allowing workers’ input in developing the mission statement, establishing policies and procedures, pay determination, promotion, and determining perks. Employee participation in decision making has become a significant topic in human resource management (HRM), and is regarded as one of the chief ingredients of employee voice, which many management scholars have observed to be a growing management concept (UK Essays,2013).

Decision according to the oxford advance learner is the action of deciding a conclusion reached and a judgment arrived at.Therefore decision-making is the most germane activities of management of multifarious organization ranging from small-scale organization to multinational corporations.

Today’s business enterprise and organization is rapidly changed with increasing turbulence and uncertainty. Such external circumstances do not allow reliable prediction of the future and creating long-term plans. Companies are under pressure to seek new strategies and to make quick decisions to overcome the changes. As the rate of change increases, so does the need for fast and immediate response, which implies higher organizational flexibility. Such conditions increase the importance of the involvement of talented employees and their input into the management process. Employees, who possess knowledge, skills and abilities, gain wider strategic importance. Involving employees indecision -making and problem solving, primarily is due to the need of the organization to develop cross-functional relationships and exploiting the total potential of employees. Decision-making styles throughout organizations are changing because the task, the environment and the people have changed. We are no longer marching troops into battle; we do not want blind obedience. Competitive advantages is now the result of employee making decision thinking being creative and asking questions.

When most managers are honest, they will acknowledge that their employee often have greater knowledge about the work than they do. Clearly, effectiveness can only be achieved with their total involvement management at time, see decision to the heart of their job in that, they must always choose what is to be done who will do it where and most at time now it will be done.

It is based on the above that the research wishes to assess the impact of employee participation in decision making and also on organization productivity in Nigeria public sector organization


1.2 Statement of the Problems

In Nigeria today, there has been lot of controversy as to whether an employee should participate in managerial decision-making or not. Many writers argued that employees should contribute in making decision especially where it affects them or their job. It is expected that such participation will serve as training and testing ground for future members of upper management.The authors maintained that qualified reasonably honest and company oriented individual are not available at these lower organizational level but the big question is are qualified individuals really available? These underlay the need for an investigation study.


1.3 Objectives of the Study

The purpose of this research study is to assess the impact of employee’s participation in decision making and organizational productivity

The researcher intend to arrive at the following sub objectives;

  1. To assess the impact of employee participation in management decision and organizational productivity
  2. To investigate the impact of employee participation in decision making on productivity of the organization
  3. To verify if employee’s opinions are made use of after being collected.
  4. To determine if participative management is considered a major factor for productivity by management.
  5. To determine the problems encountered in the practice of participative decision making.

1.4 Research Hypotheses

In an effort to accomplishing this research work effectively and perfectly the researcher present the following null and alternate

  1. Ho: Participative decision making does not involve participation at all levels of management.
    H1: Participative decision making involves participation at all levels of management.
  2. Ho: Productivity is not independent of employee’s participation in decision making.
    H2: Productivity is independent of employee’s participation in decision making

1.5 Significance of the Study

In all aspect this research work will be relevant to managers and employees of various organizations.It will also be beneficial to other public sector organization in Nigeria. Also it will be of vital importance to government, academically potential and future researcher on the issue of employee participation in decision making.It is expected that this study will be beneficial to the management by giving enough insight into the benefits of employee participation in decision making, make clear to managers what participative management stands for hence, reducing the fear often harbored by these managers. Workers, students of business Administration and the society at large are equally the potential beneficiaries of this study. It is equally my hope that the study would provide a basis on which further research could be carried out


1.6 Scope and Limitation of the Study

Particularly this research work focuses on the impact of employee participation in decision making and organizational productivity. In the cause of the study, the researcher encounters some limitations which limited the scope of the study;

Staff Reluctance:

In most cases the staff of the used study often feels reluctance over providing required information required by the researcher. This result in finding information where the structured questionnaires could not point out.

Researcher’s Commitment:

The researcher, being of full time student spent most of her time on other academic activities such as test, class work, assignment, examination etc which takes average focus from this study.

Inadequate Materials:

Scarcity of material is also another hindrance. The researcher finds it difficult to long hands in several required material which could contribute immensely to the success of this research work.


1.7 Definition of Terms

Decision Making:

This selection from among alternative of a course of action.

Productivity:

A measure of how well resource are brought together in organization and utilized for accomplishing a set result.

Management:

These is made up of top and middle level management. Top management includes shareholder boards of directors and managing director while the middle management includes heads of department manager deputy and assistant deputy.

Employee Participation:

Employee participation and empowerment can be achieved in a small business context. To empower employees, management must transfer some decision-making authority this shows employees that management has faith in them. Participation may be encouraged through a variety of means; the result is greater employee involvement in certain aspects of your business and greater organizational efficiency.

Employee:

Employee can be defined as a person employed for wages or salary, especially at non-executive level, or one employed by another usually for wages or salary and in a position below the executive level

Organization:

An organization or organisation is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.


1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  1. Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study.
  2. Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature.
  3. Chapter three deals on the research design and methodology adopted in the study.
  4. Chapter four concentrate on the data collection and analysis and presentation of finding.
  5. Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five


Summary Conclusion and Recommendation

5.1 Introduction

It is pertinent to note that this research was aimed at finding out the state of employee participation in decision-making in any organisational circle, thus the topic “employee’s participation in decision making and organizational productivity”.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges employee’s participation in decision making and organizational productivity.


5.2 Summary

The following findings were made by the researcher;

That participative decision making does involve participative at all levels of management as revealed by the test of hypothesis. This result could be attributed to the diverse views on the levels of workers participative. This could arise from what Damachi (1989) referred to as determinants of workers participation. These are the situational and the human factors. “The situational factors include the autonomy of the enterprise, technological factors, and the size of the enterprise and the organizational structure of the enterprise. The human factors consists of workers attitudes and objectives in relation to participation and workers perceived power and capacities to participate.

Also it was revealed that productivity is independent of employees participation in decision making in other words productivity to a great extent is dependent on participative management. Data analyzed in the light of this showed that workers involvement in decision making have a significant influence on productivity. In the analysis also it was found out that the majority of the respondents agreed that employee involvement in decision making is a major factor to improved productivity. It was also revealed that when employee’s opinion are incorporated into decisions, there is more stimulated of ideas and greater effort and co-operation. It also raises the morale of the workers, make them have sense of belonging and the psychologically involved in the running of the organization, they will often respond to shared problems with innovate suggestions and unusual efforts.

All these in turn give rise to improved productivity. This fact is also made manifest in the response of employees in the interview question (1) and (2) where they pointed out that they always feel like making suggestions in the decision making process and in the areas that concerns them most and their specialized areas. In doing this they are self-fulfilled and give their best because they are recognized and made part of the organization. Even the managers also confessed that these subordinates morale are not raised if they are not recognized while making decision.


5.3 Conclusion

Employee participation has been found to have favourable effects on employee attitude, commitment and productivity even also on the efficiency of the organizations. Thus employee decision should be seen as an inevitable tool in any organization both public and private. However before this could be done or undertaken, a thorough examination of the organization policy should be looked into and amended to effect this. The little practice should then no more concentrate on private sector. From the findings of this study, it could be concluded that; it is evident that the participative process has resulted in a number of tangible benefits to both the individual employee and to the organisations. As has been revealed in the above empirical studies, participation in decision-making generates many benefits to the employee, as a person. Among them are improved employee commitment, increased morale and job satisfaction, and the willingness to cooperate and to change. Organisations gain a higher quality of output, better decisions, better products, reduced conflict and other advantages. It was also shown from those research studies that employees want to participate in the decision-making process, particularly in the decisions related to their job and work environment.


5.4 Recommendation

The researcher outlined some recommendations to increase the importance and benefits of employee’s participation in decision making to facilitate organizational productivity;

  1. Organization should put more effort in encouraging their employees to come up with suggestions and useful decisions and endeavour to incorporate them into the organization’s decisions and policy.
  2. Every organization should endeavour to create a clear-cut understanding and notion of the concept of participative decision making to avoid confusion and clashes of interest between the employees and the managers.
  3. Organisation should increase the frequency and level of worker participation in decision making considering the fact that they are the people carrying out the main operative work as they are in the better position to know what goes on those areas.
  4. Finally, considering the importance and benefits of employee’s involvement in decision making especially in the growth and stability of an organization, time and money investment on it should be made properly and wisely to avoid regrets.

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