The Impact Of Employee’s Participation In Decision Making On Organizational Performance (A Study Of Some Selected Private Organizations)

Project and Seminar Material for Business Administration and Management BAM

Abstract

The title of this study is to examine the relationship between employee’s participation in decision making on organizational performance. The specific objective of study is to include, to identify the extent employees participate in the study organization. To examine the impact of employees participation on organizational performance and to highlight some of the factor effecting workers participation in the decision making. Research questions were acquired and hypothesis formulated to help derive the study. The two major sources of data were used but the questionnaire is the most extensively used instrument. The study was essentially survey design. The population of the study was 240 and a sample size of 150 was derived using the Taro Yamane formula. The data collected were analyzed using tables and percentages while the hypotheses were tested using the chi-square statistical tool. The findings arrived at include, the relationship between employee’s participation in decision making lead to a sense of belonging and create cooperation and unity in the organizational productivity. Employees’ participation in decision making positively affect their morale and enhances productive efficiency in the organization. The level of education guarantees workers participation in decision making process. Based on these findings, the following recommendations were made the level of education gives rooms to workers participation and also create cooperation, unity, and increase their morale and efficiency in job performance. The organization should device or creates a more conductive environment where their employees can participate in some delicate decision to be made like conference, seminars, and workshops.

Chapter One

Introduction

1.1 Background of the Study

The theory, the management of people is not different from the management of other success of organizations. In practice, what makes it different is the nature of the resources, people. One set of perspective views the human being as potentially a creative and complex resource whose behavior is influenced by many diverse factors originating from either the individual or the surrounding environment. Organizational behavior theorists, for example, suggest that the behaviouar and performance of the human resource is a function of at least four variables: ability, motivation, role perception and situational contingencies. Another set of perspective emphasizes the problematic nature of employment relations. (Watson, 1986). The human resource differ from other resource the employer uses, partly because individuals are endowed with varying levels of ability (including aptitudes, skills and knowledge), with personality traits, gender, role perception and differences in experiences, and partly as a result of differences in motivation and commitment.

In order words, employees differ from other resources because of their ability to evaluate and to question management’s actions and their commitment and their co-operative always has to be won. In consequences, employees need to be courted, motivated and encouraged not only to discharge their responsibilities but to do it well. This is mostly achieved through employee involvement and participation.

A modern forward-looking business does not keep its employees in the dark about vital decisions affecting them. It trusts them and involves them in decision making at all levels. “Command and control” is no longer an adequate model. A more open and collaborative framework will exploit the talents of all employees (Hewitt, 2002). Employees must be involved if they are to understand the need for creativity and if they are to be committed to changing their behavior at work, in new and improved ways (Singh, 2009, Kingir and Mesci, 2010). Employee’s involvement in decision making serves to create a sense of belonging among the workers as well as congenial environment in which both the management and the workers voluntarily contribute to healthy industrial relations (Noah, 2008).

According to Blaim (1992) since employee participation in decision making in the organization one of the motivational measure that employees appreciate and influence them positively is when they are given chance of belonging through involved them in decision making in the organizational productivity.

Agwu Akpala (1990) management is characterized by getting thing done through and with people this is the main task of management and then can only achieve this through proper leading and motivational of the employees.

Employees on the other hand are individuals who are employed to work in an organization like all human, they go to the workplace with emotion value ethics, need which influence their attitude towards work and their overall contribution or performance. Also according to theory X as postulated by McGregor, human being have an inherent dislike for work and will avoid it if they can. They therefore, must be motivated among other things to ensure that they put forth adequate effort to achieve organizational goods.

Participative decision making is when employee are allowed to contribute their opinion in matters that relates to them and their work in the organization.

However, cases abound where managers took unilateral decision even in cases that concern the employees. This is because some managers seen their employees as being in capable of contributing positively to decision making and therefore should merely receive order and directive from them.

In modern management practices. This principles no longer popular. People have come to realize that there is need for adequate representation of employees in some management decision as it effects their welfare as well as their performance. Druoker (19990 supported this with the concept of management by objective (MBO) as defined by Odiame in Crurun and Unamakalia – MBO is a process whereby superiors and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in term of the results expected of him or her and use these measures as a guide for operating the unit and assessing the contribution of each of its members.

It is against this background that this study intends to investigate the relationship between employee participation in decision making and its impact on their productivity or performance in some selected private organization.

1.2 Statement of the Problem

Employees non participation in organizational decision making may lead to low performance in an organization.

Non participation in decision making demoralize employees.

Employees non participation result to conflict between management and employees and also lead to indifferent to the decision making reached by the organizational productivity.

Its impact on their productivity or performance in some selected private organization.

1.3 Objective of the Study

The major objective of the study is to examine the impact of employees participation in decision making on organization performance.

However, the specific objectives include:

To assess the extent do employees participate in the study organization
To determine the employees participation in organizational decision making affect performance
To examine the factor affecting workers participation in decision making

1.4 Research Question

To what extent do employees participate in the study organization?
How do employees participation in organizational decision making affect performance?
What are the factor affecting workers participation in decision making?

1.5 Research Hypotheses

Streamlined to the aforementioned objectives and research questions, the following null hypothesis have been formulated and shall be subjected to suitable empirical test.

Null Hypothesis 1

Ho1: The extent of worker involvement in the decision making process of their work-places is low.

Null Hypothesis 11

Ho1: Worker participation in the decision making process co not pose any challenge in organization.

Null Hypothesis 111

Ho1: Employee participation has no impact on job satisfaction.

Null Hypothesis 1v

Ho1: Participation has no effect on employee performance.

Null Hypothesis v

Ho1: Employee performance has no impact on organization growth

1.6 Significance of the Study

The significance of the study specifies the benefit of the research, the beneficiaries and what, who ad how they would benefit. The study will serve as literature for further studies especially for business administration and other related studies. It helps to get data collection which may lead to achieve a specific goals.

The study also intends to add to the body of knowledge by highlighting different decision making techniques which can improve performance in organization.

1.6 Scope of the Study

The scope of this study is the impact of employees participation in decision making on the performance of some selected organization in private sector like Juhel Pharmacy, Innoson Nigeria Limited Company, and Roban Stores Enugu.

1.8 Definition of Terms

The definition of some relevant term in this study will aid the understanding of the study. This is in accordance with the quote of a Greek philosophers sayings that the beginning of any decision or argument lies in the clarification or definition of the relevant term Aristotle In Iroegbu (2004)

Organization:

Is a deliberate arrangement of people accomplish some specific purpose. (Robbin and Coulter 2007).

Management:

Co-ordinating work activities so that they are completed efficiently and effectively with and through other people.

Employees:

Are organized person’s employed to work in an organization. (Davis 2001). An employees is some one hired by an employer under a contract of employment of performance work on a regular basis.

Participation:

Is the act of taking part in an activity or event. It also a style of managing in which the supervisor gives the direction but decision is made by consensus (Eke 2008) participation as a management style was adopted in 1961 by Renis Likert of the University of Michigan.

Employees participation:

Is a special form of delegation which the subordinate gain greater control, greater freedom of choice with respect to bridging the communication gap between the management and the workers (Noah 2008) it also soliciting for the view of the employees in decision making process.

Decision making:

Is the process of selecting the alterative course of action from available alternative in order to achieve a given objective.

Organizational performance:

Is the level of productivity on organization experience in the course of carrying out its functions and activities.

Effectiveness:

Is the attainment of predetermined goal. It also away of doing the right thing.

Productivity:

It is an organization ability to transform input into output at the lowest possible cost (Ewulum and Unamaka 2002). It is also the rate of good which a company or worker produces and the amount produced compared with time work and money is need to produce them. So, it is a measure of the work efficiency of an individual work unit or entire organization.

Chapter Five

Summary of Findings, Conclusion and Recommendations

5.1 Empirical Findings

Based on the analyzed data, the findings in this study include the followings:-

A large number of respondents (62.5%) opined that the extent of worker involvement in the decision-making process of their work place is low. This is evidenced in the first hypothesis tested in which the calculated value of chisquare x2 63.71 is greater than the tabulated value of 5.991.
The study further revealed that worker participation poses a lot of challenges in the decision making process of their work places. This is also evidenced in the second hypothesis tested in which the calculated value of chi-square 55 is greater than the tabulated value of 7.815.
Worker participation has impact on job satisfaction. This is also evidenced from the third hypothesis tested in which the calculated value of chi-square 645 is greater than the tabulated value of 7.815.
The study further reveal that employee participation has effect on employee performance. This is also evidenced in the fourth hypothesis tested in which the calculated value of chi-square 107.5 is greater than the tabulated value of 7.815.
Finally, the study revealed that employee participation has impact on organization growth. This is also evidenced from the fifth hypothesis tested in which the calculated value of chi-square 135 is greater than the tabulated value of 7.815.

5.2 Conclusion

Based on the findings of the study, it concluded that workers in the study establishments are generally not much involved in the management decision making within their respective establishment. On the other hand, the workers generally demonstrated high-interest in management decision making. The study therefore confirmed that while the workers demonstrated positive attitude towards involvement in decision making, the actual level of involvement they exercise is negative.

Workers who are subjects of this study generally demonstrated willingness to accept the responsibility of involvement in management decision making whenever such opportunity arises, however, many hold the view that management decision making is the preserve of the management.

This implies that while the workers are willing to accept the responsibility of greater involvement in management decision making they are role reading to challenge the management in the regard.

Another conclusion reached from the study is that respondents level of income in management decision making have implication on certain organizational factors. Specifically, the commitment level demonstrated by the workers is a factor of the extent of influence they exercise of management decision making.

Finally, from the respondents assessment of management attitude towards workers participation, it could be concluded that the management in the Nigeria work enterprises are not favorably disposed towards granting workers significant measure of involvement in management decision making.

This findings leads to conclude that a lot needed to change the current negative disposition of the Nigerian management decision making.

5.3 Recommendations

The following recommendations are made to the management of case study establishments and other organizations that are interested and favourably disposed towards granting their workers significant measure of involvement in management decision making in order to enhance employee job performance and organization growth.

Enlightenment program for workers on their rights to seize the opportunity of involvement in decision making.
Provision of monetary and other incentives for workers to encourage them sustain the current interest participation.
Liberalizing management structure so as to allow for greater workers involvement.
Training programs for workers in management functions as a way of properly equipping them on their decision making role.
Levels of worker commitment may be enhanced where they have assured levels of access to the making of decision and formulation of any outcomes.
Participations should be selected on the basis of their technical expertise or their experience based expertise. Stakeholders that have vested interest (e.g. employees and employers) in the outcomes of any participating scheme should be indirectly or directly involved.
The commitment of worker and management participants should be assessed, with the intension of addressing any deficits that may be apparent.
Management commitment might be demonstrated by allocating specific resources to undertake tasks, or through the indecision of senior level management in participatory processes. Workforce commitment might be demonstrated by their level of attendance within workings or the members of recommendations that they submit.

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