EMPLOYEE PARTICIPATION IN DECISION MAKING AND ITS IMPACT ON PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY
        Decision is a choice whereby a person forms a conclusion about a situation. (Costello et al 1963 pg 43) defined the term decision making to a choice process choosing one from among several possibilities.
        However, decision theory is “Costello T.W et al” definition largely considers decision as making a single choice among course of action at a particular point in term. This depicts a cause of behavior about what must be or vice versa. Decision is however the point at which plan, policies and objectives are translated into concrete action planning agenda decision guided by company policies and objectives policies, procedures and programmes and the aim of decision making is to channel human behaviour towards a future goal.
        Decision making is however one of the most important activities of management, it has been the preoccupation of all the management of multifarious organization to ranging from small scale organization to multinational corporations. Managers may at times consider decision making to be the heart of their job, in that they who will do it, when and most time how it will be done. Traditionally managers influence the ordinary employees and specifically their immediate subordinate in the organization. This has resulted in managers making unnatural decision even in areas affecting the subordinates in Germany around (1951) a law enacted provides for code termination and  requires labour membership in the supervisor board and executive committee of certain large corporations resulted to relatively and full labour management relations. Additional, 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 executives, if the proposed is approved, it is returned to the initiator for implementation. It is in this context that the research assesses the employee participation in decision making and its impact on the productivity in Nigeria (public and private using selected firms in Oleh as a case study.

1.2    STATEMENT OF THE PROBLEM
        There has been cost of controversy as toward an employee participation in managerial decision making. Writers argued that employees should contribute in making decision most especially where it affects them or their jobs. It is expected that such participation will serve as training ground for further members of upper managements.
          The general purpose of this empirical study is to assess the impact of employees participation in decision making in Nigeria with reference to selected firms in Oleh, delta state. The specific objectives are;
-    To assess the impact of employee participation in management decision making in selected firms.
 -   To ascertain the impact of employee participation in management decision on productivity of the organization
          In view of the above and in order to accomplish this research work effectively, the research posses the following research questions,
-    Do management staffs make decision with consultation of employees?
-   Do management change decision when rejected by employees?
-   Do the employees participate in decision making?
        The research formulates the following hypothesis based on the objectives and problems of this research work.
Ho: Management staff makes decision without consultation with employees
Hi: Management staff makes decision through pre and post discussion and consultation with employees. 
Ho: That the majority / vital parts of the decisions are not made by the employees of selected firms

Hi:    The majority / vital parts of the decision are made by the  employees of selected firms.
Hi:    The employees meet any time the need arises to discuss any issue

1.5    SIGNIFICANCE OF THE STUDY
        This research work will be relevant to the management employees of selected firms, Oleh and other management oriented enterprises in Nigeria. It will also be of great important to government academicians and potentials and future researcher on issue of employees participation in managerial decision making. This empirical study is also important requirement for the award of higher degree certificate in the management field.

1.6    SCOPE OF THE STUDY
        This research work focuses particularly on the impact of employee participation in decision making and organization productivity using selected firms in Oleh as a case study

1.7    PROFILE OF THE COMPANY
          Oke table water is a sachet water (pure water) producing company located at No 10 Akpovvie Asegwake stress, beside Delta State University Oleh. The organization was established in the year in the year 2004 with a staff strength of 4 members including the director. The organization is strictly a sachet water (pure water) producing organization that was established to serve its immediate community as well as the surrounding communities. The organization that now employs over 20 youths in Oleh and other local government in Isoko North and South of delta state.

1.8    OPERATIONAL DEFINITION OF TERMS
    Decision making: the selection from among alternative of a course of action.
    Management: Management is made up of top and middle level top management including stakeholders, board of directors, managing directors (i.e. management above department level). Middle managers, deputy and assistant managers.
    Productivity: A measure of how well resources are brought together in organization and utilized for accomplishing a set of result.
    German: Relevant, important or patient
    Heart of their job: As it is used in the research work means their main job
    Participation: this involves taking part or being involved in an activity. It involves contribution by an individual group or organization (representatives) in an executives.