THE IMPACT OF EMPLOYEE PARTICIPATION IN DECISION MAKING AND ORGANIZATIONAL PRODUCTIVITY

ABSTRACT

This study was carried out with the aim of appraising the impact of employee participation in decision making and organizational productivity. In order to actualize the objectives of the study, various literature and theoretical issues were discussed. The instrument used for the purpose of this research was gathered through primary source. The mass of information generated from the questionnaires which was summarized in form of table and analyzed using simple percentage. The researcher administered one hundred (100) questionnaires to respondents, out of which eighty (80) were retrieved for the purpose of presenting and analyzing responses to issues raise in the questionnaires. The hypotheses were tested using Z-test statistical tool. The findings from the analysis revealed among other things that there is a significant relationship between employee participation in decision making and organizational productivity. We therefore recommend that to tackle the current obstacles against effective employees’ participation in decision making in Nigeria, enlightenment program for workers on their rights to seize the opportunity of participation in decision making should be frequently organized.

CHAPTER ONE
INTRODUCTION
1.1       BACKGROUND TO THE STUDY
The concept of employee participation represents a popular theme in the analysis of the world of work among scholars in the fields of Industrial Sociology, Industrial Relations as well as management. It refers to any arrangement which is designed to involve low cadre employees (employees) in the important decision making within the workplace. This implies that rather than saddling only a group within the enterprise (for instance, management) with the responsibility of making decisions, all those who are to be affected by these decisions (including the employees) would be involved in its formulation and implementation (Yusuf, 2008).

In recent time, scholars have directed increasing attention to the issue of employee participation and its broader corollary, industrial democracy (Mankidy, 1984: Yesufu, 1984, Adewumi 1989; Verma and Syha; 1991, Weller 1993; Kester and Pinaud, 1996; Adu-Amankwah and Kester, 1999).

These concerns reflect a growing interest in finding ways to make work more meaningful and satisfying to the employees. This rest on the belief that the organizational goals of high productivity and harmonious industrial relations are best achieved when the higher level needs of the human elements (employees) are satisfied.

Employee participation implies arrangements designed to involve employees in the enterprises decision making process. This allows for employees’ participation in the initiation, formulation and implementation of decisions within the enterprise. The concept can also be understood in terms of a new approach to industry and society in which people want to be interested with the taking of decisions which have direct bearing on them.

MacGregor (1960) contend that employee participation consists basically in creating opportunity under suitable conditions for people to influence decisions which affect them. It is a special case of delegation in which the subordinate gain greater control, greater freedom of choice with respect to bridging the communication gap between the management and the employees. This serves to create a sense of belonging among the employees as well as a conducive environment in which both the employees would voluntarily contribute to healthy industrial relations.

The corporate organizations in Nigeria have been a focal sector; but little is probably known about the influence of its employee participation in decision making on organizational productivity.

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 participation 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 participation (Cohen et al., 1997).

Thus, the participation 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). However, researchers may be skeptical about the value and relevance of employee participation in decision making to organizational productivity. It is in view of this that the study examines the impact of employee participation in decision making and organizational productivity in Nigeria.

1.2       STATEMENT OF THE RESEARCH PROBLEM
The spread of democratic value to virtually every society today has brought the need to examine the implications of this trend to other spheres of life. With respect to economic sector, employees are faced with the dilemma of how to cope with authoritative management in the work places while living in a democratic society which guarantee basic fundamental freedom.

In addition, the denial of employees active participation in decision making is held to be one of the major causes of the problems which are manifested daily in the work lives of the modern employees.

The implication of these to employees of increasing exposure to a monetized society, rising education and wider contact among people resulting from the break-up of artificial barriers was to shift these aspirations to a more satisfying work experience, greater control over the organization of work, greater opportunity for personal development and wider scope in exercise of initiatives.

Specifically, the refusal of work organizations to recognize the human factor in industrial production through greater participation of employees in its management decision making would tend to create several human problems in this setting. A employee is a social being who brings his personality, hopes, aspirations, anxieties, feeling and attitude to the work place. He seeks satisfaction and meaning in his work as he does in other spheres of life. However, when he finds that his work does not provide him with the opportunity to realize his potentials (for instance, through strict management control) he tends to engage in negative behaviours like absenteeism, apathy, low commitment and low productivity.

The implication of these negative tendencies resulting from strict management control has therefore raised serious concern among scholars interested in healthy industrial relations.

Against this backdrop, the following research questions are raised:
1.           Is there significant relationship between employee participation in decision making and organizational productivity?
2.           Is there significant relationship between level of education and employees’ participation in decision making?
3.           Does the denial of employees active participation in decision making is one of the major causes of the problems which are manifested daily in the work lives of the modern employees?

1.3       OBJECTIVES OF THE STUDY
The main objective of this study is to investigate the impact of employee participation in decision making and organizational productivity.
The specific objectives are:
1.           To investigate if there is significant relationship between employee participation in decision making and organizational productivity.
2.           To determine if there is significant relationship between level of education and employees’ participation in decision making.
3.           To find out if the denial of employees active participation in decision making is one of the major causes of the problems which are manifested daily in the work lives of the modern employees.

1.4       RESEARCH HYPOTHESIS
The hypotheses for this study are;
Hypothesis I
Ho:     There is no significant relationship between employee participation in decision making and organizational productivity.
H1:    There is a significant relationship between employee participation in decision making and organizational productivity.
Hypothesis II
Ho:     There is no significant relationship between level of education and employees’ participation in decision making.
H1:    There is a significant relationship between level of education and employees’ participation in decision making.
Hypothesis III
Ho:     The denial of employees’ active participation in decision making is not one of the major causes of the problems which are manifested daily in the work lives of the modern employees.
H1:    The denial of employees’ active participation in decision making is one of the major causes of the problems which are manifested daily in the work lives of the modern employees.

SIGNIFICANCE OF THE STUDY
It is expected that this study would consolidate existing literature on the issues surrounding the impact of employee participation in decision making and organizational productivity in Nigeria. The study would also facilitate the examination of the effects of employee participation in decision making and organizational productivity and thus boosting the empirical evidence from Nigeria. Furthermore, given the empirical nature of the study, the outcome of this study would aid policy makers and regulatory bodies in economic modeling and policy simulation with respect to the selected variables examined in the study.

The result of the study would be of benefits to investment analysts, investors and corporations.

It will also be useful in stimulating public discourse given the dearth of empirical researches in this area from emerging economies like Nigeria. Finally, it would also add to the available literature on the area of study while also providing a platform for other researchers who may want to further this study