THE IMPACT OF EMPLOYEES’ PARTICIPATION IN DECISION MAKING ON JOB PRODUCTIVITY (A CASE STUDY OF ANAMMCO LIMITED)

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

A modern forward-looking business does not keep its employees in the dark about vital decisions affecting them but 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 behaviour at work, in new and improved ways (Singh, 2009; Kingir and Mesci, 2010).

Employee involvement in decision making serves to create a sense of belonging among the workers as well as a congenial environment in which both the management and the workers voluntarily contribute to healthy industrial relations (Noah, 2008).

In order to increase the workers commitment and humanize the workplace with the intention of improving work performance and good citizenship behaviour, managers need to permit a high degree of employee involvement (Cohen et al., 1997).

Thus, the involvement of workers in decision making is considered as a tool for inducing motivation in the workers leading to positive work attitude and high productivity (Noah, 2009).

It should be recanted that a decision is a choice where by a person forms a conclusion about a situation. Costello, I. Wand Zalkind, S.S. (1963 P. 334), confined the term decision making, to a choice process, choosing one from among several possibilities, however, decision theory in Costello, T. w et al (1963, P 387) largely considers decision asking the process of making a single choice among course of action at a particular point in time this depicts a course of behavior about what must be done or vice versa. Decision is however, the point at which plans, policies and objectives are translated into concrete actions. Planning engenders decisions guided by company policy and objectives, policies, procedures and programmes. The aim of decision making is to channel human behavior towards a future goal.

Employees can affect organizational productivity positively when they are wiling and committed to organizational goals. Willingness and commitment can be exhibited by employees towards their job if they are involved in decision making and participate in the affairs of the organization. Thus, for management to win the commitment of employees to get their job done properly, individual employees should not be treated in isolation, but must be involved in maters concerning them and the organization. When employees are involved in decision making, staff absenteeism is reduced, there’s greater organizational commitment, improved performance, reduced turnover and greater job satisfaction Luthans, (2005).

It is for this reason that he management of Julius Berger Bony Island allowed employees involvement in decision making on maters that affect them to elicit their commitment to organizational goals.

Decision-making is however, one of the most germane activities of management. It has been the preoccupation of all the management of multifarious organization ranging from small-scale organization to multinational corporations.

Managers many at times consider decision making to be the heart of their job in that they must always choose what is to be done. Who will do it, when where and most the time now it will be done.

Traditionally, managers influence the ordinary employees and specifically, their immediate subordinates in the organization. This has resulted in managers making unnatural decision even in areas affecting their subordinates.

In Germany, around 1951, a low enacted which provides for code termination and requires labour membership in the supervisory hoard and executive committee of certain large corporations. However the participation of labour in decision making process resulted to relatively and peaceful labour management relations.

Additionally, the Japanese management uses decision making by consensus in which lower-level employees initiate the idea and submit it to the next higher-level unit it reaches the desk of the top executive. If the proposal is approved, it is returned to the initiator for implementation.

It is in this context that the research wishes to assess the employee participation in decision making and its impact on productivity in Nigerian public sector organizations, using ANAMMCO as a case study.

1.2               STATEMENT OF THE PROBLEM

There has been lost of controversy as to whether an employee should participate in managerial decision making or not. Some writers argued that employees should contribute in making decision more especially where it affects them or their jobs. It is expected that such participation will serve as training and testing ground for future members of upper management.

In Nigeria, experts that refuted the above assertion see the arrangement as a symptom of mal- organization. They maintained that, qualified, reasonably, honest and company oriented individuals are not available at these lower organizational levels. But, the big question is, are qualified individuals really available?

Economic development activities are usually hampered in a country with high rate of labour disagreements; since productivity/national output will be low, inflation and rate of unemployment will be high while there will be an increase in social vices. Since labour disagreements originate from the exclusion of employees in decision making in maters that affect them, such disagreements, can be prevented through the adoption of a personnel management approach (whether direct or indirect) that guarantees employees participation in decision making in maters that affect hem.

All these underlay the need for an investigation study.

1.3               OBJECTIVES OF THE STUDY

The general purpose of this empirical study is to assess the impact of employees’ participation in managerial decision making.

The specific objective are:-

1.     To examine whether there is a significant relationship between employee involvement in decision making and firms’ performance.

2.     To investigate whether employee involvement in decision making has a significant impact on firms’ performance.

3.     To examine the relationship between participation in decision making and productivity.

4.     To examine role of participation in decision making and industrial harmony

5.     To examine the role of participation in decision making and employees’ development.

1.4 RESEARCH QUESTIONS

In a view to accomplishing this research work effectively the research poses the followings.

1)    Is there any significant relationship between employee involvement in decision making and firms’ performance?

2)    Does employees involvement in decision making has a significant impact on firms’ performance?

3)    Is there any impact of employee participation in management decision – making?

4)    Does participation in decision making has role to play in organizational harmony.

5)    Does management change decision when rejected by employees?

1.5 RESEARCH HYPOTHESES

HYPOTHESIS ONE

Ho: There is no significant relationship between employee involvement in decision making and productivity.

Hi: There is a significant relationship between employee involvement in decision making and productivity.

HYPOTHESIS TWO

Ho: Employee involvement in decision making does not have a significant impact on firms’ performance.

Hi: Employee involvement in decision making has a significant impact on organizational performance.

1.6 SCOPE OF THE STUDY

This research work focuses particularly on the impact of employee participation in decision making on organizational productivity using ANAMMCO Ltd., Enugu as a case study.

1.7 SIGNIFICANCE OF THE STUDY

In practical sense, the significance of this study is to bring together the various news and facts as regards to subject matter, against this back drop, it is anticipated that the study will be of immensely help to different categories of people both the managements, managers, students in various disciplines, the government, employees in different organizations and employers at large. It will also go further to remove the ambiguity between what motivates and what does not motivate workers in work situation.

This study will be of great value to the practicing managers and leaders on how to harmonize their resources to effective and efficient result.

1.8 LIMITATION OF THE STUDY

A study of this nature is bound to experience certain problems as such the constraints imposed on the research include:

a.     Time: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.

b.     Cost: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.

c.      Lack of cooperation: many of the respondents are usually aggressive on issue that border cooperation among the respondents border.

1.9 DEFINITION OF TERMS

1.     DECISION MAKING: The selection from among alternative of a course of action.

2.     MANAGEMENT: Management is made up of top and middle level management. Top management includes: share holders, board of Directors managing, Director or the chief Executive/General manager (ie management above departmental level) middle management includes heads of Department, managers, Deputy and Assistant managers.

3.     PRODUCTIVITY: A measure of how well resources are brought together in organizations and utilized for accomplishing a set of results.

4.     GERMANE: Relevant, important or pertinent.

5.     HEART OF THEIR JOB: As it is used in the research work means their main job.

6.     Performance: A performance, in performing arts, generally comprises an event in which a performer or group of performers behave in a particular way for another group of people, the audience.

7.     Productivity: Productivity is an average measure of the efficiency of production. It can be expressed as the ratio of output to inputs used in the production process, i.e. output per unit of input.

8.     Involvement: To include as a necessary circumstance, condition, or consequence.