Impact Of Employee Participation In Decision Making In An Organization

Project and Seminar Material for Industrial Relations and Personnel Management

Impact Of Employee Participation In Decision Making In An Organization


This research work is conducted to determine the impact of employee participation in the decision making in an organization (A Case Study of Freedom Group of Company, Benin City). It is imperative to state that the style adopted by any organization have impact on the employees motivation positively or negatively. Data were collected through the use of questionnaire and oral interview alongside. The data collected were carefully analyzed using statistical method such as chi-square method. Based on the analysis data, the following findings were made that employees should be involved in decision making process rather than acting on orders.

Employees participation is part of a process of empowerment in the organization. it is important for employees to participate effectively in decision making in the organization in order to strengthen their level of influences to all existing structures in the organization. the study revealed that the perception of a management decision by employees could affect the growth and expansion of the organization. it is therefore recommended that any organization that want to survive and meet up with better and efficient management, should practice its importance and this cannot be overemphasized in any organization.

Chapter One


1.1 Background to the Study

Decision making whether in private life, clubs, government, military, educational institutions or in business organizations have the same essential functions. It is primarily a tool for problems solving.

It is a daily phenomenon, which every rational human being cannot avoid. Decision making could involve such simple and uncomplicated issues as deciding on what to take for breakfast or selecting an outfit to wear to a dinner party. It could also involve complex and strategic issues such as an entrepreneur deciding on when and how to carry out an attack.

However, whatever issue is involved there is one central point which cannot be ignored, which is the existence of various alternatives relevant to the problem from which the decision maker must choose one i.e. the best among all the alternatives. This choice demands a conscious and deliberate effort on the part of the decision maker.

Traditionally, people rely on judgement and intuition in making decisions. In the modern context as a result of advancement in technology, science and business development, a systematic and consistent way of making optional decision making which makes use of highly qualitative tools such as mathematical models, computer etc. The use of judgement and intuition is still relevant in the modern context in that, they serve as compliment to the scientific approach.

Decision making is so important in our daily lives that adopting laisefare attitudes in the formulation could result to a grave consequence. Government are known to have fallen because of wrong decisions. Also, another wise business unit could be crippled into bankruptcy because of wrong decisions. Therefore, for any individual, corporate body or government to function well, sound decision is imperative.

Making decisions demands recognizing the basic fact that a situation exists which calls for a change. This change when effected in bound could affect others. In other words, decision making affect group objectives. this is why people tend to resist new decisions especially in a business organization. This is so because, workers have various objectives, which narrows the workers/organizational objectives.

There is no better way to this than to follow a logical sequence of decision making, making use of all available modern techniques in gathering and analyzing information. The benefit of doing this is to outstrip the cost in terms of both medium and long range benefits accruing.

Since decision making has become of the most important functions of management study, it is the researchers believe that thorough examination of all facts of this concept will prove most rewarding to Nigeria business organization.

1.2 Statement of the Problem

  1. How does decision making have impact on the operations of Freedom Group of Company, Benin City.
  2. How do workers react to decision made by the management?
  3. What role has decision making played in the motivation of the workers?
  4. How are decisions made in Freedom Group of Company, Benin City? Are they democratic or autocratic?

1.3 Objectives of the Study

The objectives of the study are;

  1. To determine whether decision making affects the operations of Freedom Group of Company, Benin City.
  2. To find out whether workers react to decisions made by management.
  3. To also find out the role decision making plays in the motivation of the workers.
  4. To ascertain whether decisions made in Freedom Group of Company, Benin City are democratic or autocratic.

1.4 Research Questions

The study shall attempt to answer the following research questions;

  1. Does decision making process in business organization affect performance?
  2. How can the workers access the quality of decision making in the organization?
  3. Does decision making affect the operation of the organizations?
  4. Does the organization inform the employees before taking routine decision?

1.5 Statement of Hypothesis

The research is motivated by the desire to move the validity of some basic assumptions on the impact of decision making process in business organizations, such hypothesis formulated include:

Hypothesis One
  • HO; There is no significant relationship between organization’s objectives and decision making.
  • HI; There is significant relationship between organization’s objective and decision making.
Hypothesis Two
  • HO; There is no significant relationship between workers attitude to work and decision made by management.
  • HI; There is significant relationship between workers attitude to work and decision made by management.
Hypothesis Three
  • HO; There is no significant relationship between motivation of workers and decision making.
  • HI; There is significant relationship between motivation workers and decision making.

1.6 Scope of the Study

This research work is restricted to the examination of the basic concepts of decision making with specified reference to business organizations. The researcher would as from time refers to the mathematical models. Actual mathematical models, actual mathematical calculations would be indulged into this topic. The researcher would examine the following concepts;

  1. The meaning of decision making
  2. Types of decision
  3. Decision making process
  4. Decision
  5. Improvement of decision making process

Though, there are many organizations in Nigeria, the researcher chooses to limit this study to Freedom Group of Company, Benin City.

1.7 Significance of the Study

The significance of this study is to serve as a guide to business organization on how to make useful and worthwhile decisions by exposing them to the various methods and processes involved. This work is equally of value to the casual readers who are interested in providing more about concept of decision making.

It is hope that this study will make concrete recommendations on the decision making process in business organization and also form the basis of decision making process in business organization.

1.8 Limitations of the Study

There were series of problems or obstacles to this study in the course of carrying out this research. Many of the questionnaire administered was not returned. There was also difficulty in scouting for books that are relevant to the study.

1.9 Definition of Terms


A decision is the selection of alternative course of action from available alternatives.

Decision Making:

This is the process of identifying and selecting a course of action to solve a specific problem.


An organization is a group of people bound together to provide unity of action for the achievement of a predetermined objective.


These concerned in managing a business, company, industry, enterprises, firms etc

Strategic Decision:

These are decisions which are concerned with external rather than internal problems of the firm.

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