The Impact of Employees participation in decision making and organizational productivity in private sector.

(Business Administration and Management)

THE IMPACT OF EMPLOYEE’S PARTICIPATION IN DECISION MAKING ON ORGANIZATIONAL PERFORMANCE

(A STUDY OF SOME SELECTED PRIVATE ORGANIZATIONS)

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.

 

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

1.1              Background of the Study

1.2              Statement of Problem

1.3              Purpose of the Study

1.4              Significance of the Study

1.5              Research Question/Hypothesis

1.6              Theoretical foundation of the study

1.7              Scope of the study

1.8              Limitation of the study

1.9              Definition of Terms

References   

CHAPTER TWO: LITERATURE REVIEW

2.1       Theoretical Framework

CHAPTER THREE: RESEARCH DESIGN AD METHODOLOGY

3.1       Research Design

3.2       Sources of Data

3.3       Location of the Study

3.4       Population of the Study

3.5       Determination of Sample Size

3.6       Sampling Techniques

3.7       Method of Data Collection/Instrumentation

.8         Method of Data Analysis

3.9       Validity and Reliability of Instrument

            References

CHAPTER FOUR: DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1       Data Presentation

4.2       Analysis of Data

4.3       Testing of Hypothesis 

4.4       Interpretation of Results

            References

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS  

5.1       Summary of Findings

5.2       Conclusions

5.3       Recommendations

5.4       Suggest for Further Studies 

            Bibliography

            Appendices

 

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.

1.2       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.

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:

1.4       RESEARCH QUESTION

1.         To what extent do employees participate in the study organization?

2.         How do employees participation in organizational decision making affect performance?    

3.         What are the factor affecting workers participation in decision making?

1.5       RESEARCH HYPOTHESES 

Ho:      There is no relationship between employees participation in decision making and organizational performance.

H1:       There is relationship between employees participation in decision making and organizational performance.

Ho:      Workers participation in decision making negatively affect their moral.

H2:       Workers participation in decision making positively affect their moral.

Ho;      Level of education does not guarantee workers participation in decision making.

H3;       Level of education guarantee workers participation in decision making.

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.

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