Full Project – EMPLOYEES PARTICIPATION IN DECISION MAKING AND IT’S IMPACT ON PRODUCTIVITY

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Employee participation in decision making has been recognized as a managerial tool for improving organizational performance by striving for the shared goals of employees and managers. This is actualized by way of allowing workers’ input in developing the mission statement, establishing policies and procedures, pay determination, promotion, and determining perks. Employee participation is creating an environment in which people have an impact on decision and actions that affect their jobs. Employee participation is not the goal nor is it a tool, rather, employee participation is a management and leadership philosophy about how people are most enabled to contribute to continuous improvement and the ongoing success of the organization.

Employee Participation is generally defined as a process in which influence is shared among individuals who are otherwise hierarchically unequal. Employee participation represents the combination of task-related practices, which aim to maximize employees’ sense of involvement in their work, and human resource management practices that aim to maximize employees’ commitment to the wider organization (Bhatti & Nawab, 2011). Participatory management practice balances the involvement of managers and their subordinates in information processing, decision making and problem solving endeavours.

There has been significant attention from researchers that focus on the manner in which structure affects employee attitudes. Singh, (2009) in his study, stated that in current dynamic working environment and severe competition, organizations are required to adopt techniques which are flexible, adaptive and competitive due to the competitive pressures and rapidly changing market conditions. Moreover organizations are realizing that their employees are the most important asset and organization’s future depends on more involvement of employees in generating new ideas. The involvement of employees can help in many ways to the organizations looking for creativity, changes in behaviors at work, and in workplace decision making. In order to increase the workers commitment and humanise 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., 2007). 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).

Moving decision making power downward in organizations is at the core of what employee participation is all about. Teams are a potentially powerful way to move power downward. The employee participation has also been implemented in organizations in order to motivate the employees by involving them with the management for taking serious decisions about the organization. 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 pre-occupation of all management of multifarious organization to multi-national corporations. The basic concept involves any power-sharing arrangement in which workplace influence is shared among individuals who are otherwise hierarchical unequals. Such power-sharing arrangements may entail various employee involvement schemes resulting in co-determination of working conditions, problem solving and decision making.

Ukandu, (2010) is of the view that participative decision making can be possible in an organization. Among the indigenous employers, particularly the small and medium sized organization, their attitude to workers is paternalistic and authoritarians. Their activities are often shrouded on secrecy. They are suspicious of the workers and therefore cannot afford to share information and decision with them. Some managers that fail to delegate, as they do not go on leaves, where some go, they are on working leave; still attending work, some while on leave lock up certain jobs/documents in their drawers, thus making such pending till they resume, whereas participative management involves nothing more than sharing information with subordinates.

Despite their economic importance, many organizations suffer from a variety of structural and institutional weaknesses, which have constrained their ability to take full advantage of the rapidly advancing process of globalization. Professionally and nonprofessionally human resource management practices inside different organizations from different industries have not shown the change. Employee participation represents the combination of task-related practices, which aim to maximize employees‟ sense of involvement in their work, and human resource management practices that aim to maximize employees‟ commitment to the wider organization. Varieties of employee involvement practices are included to support the task-related practices. These supporting practices include: training, to improve employees’ problem-solving and communication skills; financial participation schemes, to enhance the link between effort and reward; and an emphasis on job security and internal promotion, to engender employees‟ commitment to organizational success. So far, the relationship between the employee participation and organizational commitment is not yet fully understood, partially because most researchers focuses their study on participation or commitment in relation to performance, instead of the direct link between participation and commitment. Against this background, this study this study examines the effect of employee participation in decision making on productivity.

1.2 Statement of the Problem

There has been a lot of controversy as to whether an employee should participate in management 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, reasonable, honest and company oriented individuals are not available at these lower organizational levels.

The problem mainly lies on the fact that participation though obtained has not been clearly understood as well as its benefits. Some of the managers feel that the decision making process is their sole prerogative and as such should be protected. Again top management likes to remain aloof from its employee as to build an all important air around them. But the big question is, are skilled individuals really available? In the light of the above, this study therefore is set to examine the Employees participation in decision making and it’s impact on productivity.

1.3 Purpose of the Study

The main objective of this study is to examine the Employees participation in decision making and it’s impact on productivity. Other specific objectives include to:

Determine whether employee participate in decision making to enhance productivity of Seplat Petroleum.
Ascertain whether perception of employees towards participative management policy will enhance productivity in Seplat Petroleum.
Determine if employee opinion are been utilized for decision making in Seplat Petroleum.
Determine the problems encountered by management in the practice of participative decision of employee in Seplat Petroleum.

1.4 Research Questions

The following research questions were raised to guide the study:

Does employee participate in decision making to enhance productivity of Seplat Petroleum?
Does perception of employees towards participative management policy enhance productivity in Seplat Petroleum?
Does employee opinion been utilized for decision making in Seplat Petroleum?
What are the problems encountered by management in the practice of participative decision of employee in Seplat Petroleum?

1.5 Relevant Hypothesis

The following hypotheses will guide the study:

H₀: Employee participation in decision making will not significantly influence productivity in Seplat Petroleum.

H₁: Employee participation in decision making will significantly influence productivity in Seplat Petroleum.

H₀: Perception of employees towards participative management policy will not significantly enhance productivity in Seplat Petroleum.

H₂: Perception of employees towards participative management policy will significantly enhance productivity in Seplat Petroleum.

1.6 Relevance and Significance of the Study

It is expected that the study will inform the management of the Seplat Petroleum that to increase productivity and to ensure harmony between management and the workers, there is need for employees participation in decision making in the organization as it is a good motivation factor.

It will also help develop and maintain a quality work life, which will provide an opportunity for employees’ job satisfaction and self-actualization. It will also aid management of Seplat Petroleum to introduce modern schemes for good relationship with their workers; to enable them meets the challenges of change in the future.

Finally, this work is also beneficial to the organizations in general and also important to government, academic potential and future researchers on the issue of employees participation in decision making.

1.7 Scope and Limitation of the Study

The study examines the effect of employee participation in decision making on productivity. The research study will be restricted to the use of questionnaires when appropriate and to provide an insight into management decision making process. Data collections will be restricted to some selected staff of Seplat Petroleum.

Some limitations that will be encountered in the process of the study include:

Financial constraint: In running around to gather material for this study considering the economic meltdown, money and other resources where involved delayed the completion of this work.
Time: The researcher will be constraint by time in running round for the completion of this project.
Attitude of respondents: The research might find it difficult to source required information from the staff of Seplat Petroleum; this will also delay the completion of this work.

1.8 Operational Definition of Terms

Decision Making: The selection from among alternative a course of action.

Employees Participation: This is creating an environment in which people have an impact on decisions and actions that affect their jobs in the organization.

Management: Management can be defined as an art of science of achieving the objective of a business in the most efficient way. It is made up of top and middle level management. Top management include: share holders, Board of Director, Managing Directors or the Chief Executive/General Manager above department level. middle level managers include: level of department manager, deputy and assistant managers.

Productivity: A measure of how well resources are brought together in organization and utilized for accomplishing a set of result.

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