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THE EFFECT OF EMPLOYEE PARTICIPATION IN DECISION MAKING ON PRODUCTIVITY

ABSTRACT

This study was intended to examine the effect of employee participation in decision making on organizational productivity. This study was guided by the following objectives; to examine the effect of employee participation on organizational productivity; to find out ways/methods of introducing effective employee participation programme in an organization and to determine the challenges that are associated with employee participation. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the chi square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 25 staff of ANAMMCO Ltd. The study findings revealed that there is a relationship between employee participation and organizational productivity; based on the findings from the study, employers should engage in constant constructive communication with its employees.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

It should be recanted that a decision is a choice where by a person forms a conclusion about a situation. Costello, and zalkind, (2013), confined the term decision making, to a choice process, choosing one from among several possibilities. However, decision theory in Costello, et al (2013) largely considers decision making as 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 policies and objectives, procedures and programmes. The aim of decision making is to channel human behavior towards a future goal.

For decision to be assumed to be effective there must exist competing alternatives. Before effective   decisions are taken some proposals will be rejected, others accepted,   still others modified. The differences will be narrowed: bargains will be struck until ultimately, in some instances, the decision will be only a formality. In other words, the question will be in doubt until the votes are counted or the decision is announced. 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 of the time how 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 effecting their subordinates.

In Germany, around 1951, a law enacted which provides for code termination and requires labour membership in the supervisory board 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 researcher wishes to assess the impact of employees participation in decision making on organizational productivity in Nigerian public sector organizations, using Nigeria Bottling Company imo State Branch as a case study.

1.2   STATEMENT OF THE PROBLEM.

There has been lots of controversy as to whether an employee should participate in 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? All these underlay the need for an investigation study.

1.3   OBJECTIVE/PURPOSE OF THE STUDY

The general purpose of this empirical study is to assess The Effect Of Employee Participation In Decision Making On Productivity in public sector organization in Nigeria with reference to Nigeria Bottling Company Imo State Branch.

The specific objectives are:-

To assess the impact of employee participation in management decision – making of Nigeria Bottling Company Imo State Branch.

To ascertain the impact of employee participation or non-participation in management decision on productivity of the organization.

To make recommendations based on the research findings.

1.4   RESEARCH QUESTIONS

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

Do management staff make decision without pre and post discussion and consultation with employees?

Do management change decision when rejected by employees?

To what extent do employee participate in decision making?

How often do employees meet to discuss with managers?

1.5   RESEARCH HYPOTHESIS

The researcher formulates the following hypothesis based on the objectives and problems of this research work.

HYPOTHESIS I

Ho: Management staff makes decision without prior discussion and consultation with employees.

Hi: Management staff make decision with prior and consultation of the employees.

HYPOTHESIS II

Ho: That the management of Nigeria Bottling Company imo State Branch does not change decisions when rejected by employees.

Hi: That the management of Nigeria Bottling Company imo State Branch change decisions when rejected by employees.

1.6   SIGNIFICANCE OF THE STUDY

This research work will be relevant to the mangers and employees of Nigeria Bottling Company imo State Branch. It will also be beneficial to other public sector organization in Nigeria- it will also be of prodigious importance to government, academicals potential and future researchers on the issue of employee participation in managerial decision making. This empirical study is also germane to the researcher since it is a partial requirement for the award of B.sc. Degree in Business Administration.

1.7 SCOPE OF THE STUDY

Economic development activities are usually hampered in a country with high rate oflabour 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 matters 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 matters that affect them.

1.8  LIMITATIONS OF THE STUDY

A work of this nature is not easy to consummate or accomplish. And, as a result of financial problem, time constraints, apathy on the part of respondents and bureaucratic procedures involved in releasing data seriously affected the study.   

1.9   DEFINITION OF TERMS

1. WAEC - West Africa Examination Council

2. NECO – National Examination Council Organization

3. ANAMMCO – Anambra Motor Manufacturing Company

4. CKD – Completely Knocked Down

5. B.SC. – Bachelor In Science   

REFERENCES

APPLEBY, R.C (2011), Modern Business Administration 3rd Edition Pitman Publishing Limited.

Costello, T. W and Zalkind, S.S, (2013) Psychology In Administration. A Research Orientation Text Engle Word

Koontz,H.O, Donnell Cyril O. and Weihrich H. (2010) Management 7th ed. McGraw- Hall International Book