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EFFECT OF EMPLOYEE PARTICIPATION IN ORGANIZATIONAL DECISION MAKING ON THE PERFORMANCE OF PUBLIC SECTORS: A STUDY OF SELECTED PARASTATALS.

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Product Code: 00009660

No of Pages: 97

No of Chapters: 1-5

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Abstract

This study was conducted to examine the effect of employees participation in organizational decision making on the performance of public sectors. The collected data were analyzed using simple descriptive and inferential statistics like multiple regression. From the findings of the study, it was established that regardless of how much the management has been able to do in terms of embracing workers in policy formulation, a lot still needs to be done to facilitate increased efficiency of the system towards better policy acceptability within the organization. The conclusion drawn shows that effective participation in policy formulation was a function of positive employee attitude, high employee morale and good human relations at work place as well as effective communication, and as such, the researcher would recommend that the culture of the organization need to support employee participation in policy formulations so that it can be easy for the management to accept participation. Also, there is need to empower employees for them to have increased accountability in terms of workers involvement in policy formulation.





TABLE OF CONTENTS

 

Title Page                                                                                                        i

Certification                                                                                                   ii

Declaration                                                                                                     iii

Acknowledgements                                                                                        iv

Table of Contents                                                                                           v

List of Tables                                                                                                  vi

List of Figures                                                                                                 vii

Abstract                                                                                                          x

           

CHAPTER 1: INTRODUCTION                                                                1

1.1           Background of The Study                                                                   1

1.2           Statement of The Problem                                                                  4

1.3           Research Objectives                                                                           5

1.4           Research Questions                                                                            6

1.5           Research Hypothesis                                                                          6

1.6           Significance of Study                                                                         7

1.7           Scope of The Study                                                                            8

1.8           Limitation of Study                                                                            9

 

CHAPTER 2: REVIEW OF RELATED LITERATURE                         10       

2.1       Conceptual review                                                                              11

2.11     Definition of participation                                                                  12

2.1.2    Origin and growth of workers’ participation                                     1

2.1.3    Advantages of employee participation                                               15

2.1.4    Disadvantages of employee participation                                          17

2.1.5    Methods/ways of participation of employees in decision-making            23

2.1.6    An overview of participative decision making                                  23

2.1.7    Types of participatory decision making                                             28

2.1.8    Dimensions of participatory decision making                                    30

2.1.9    Model of participatory decision making                                            33

2.2       Theoretical Framework                                                                      35

2.2.1    Vigilant interaction theory                                                                 36

2.22     Democratic participatory theory                                                         37

2.3       Empirical Review                                                                               38

2.4       Summary of Literature Review                                                          42

2.5       Gaps in Literature Review                                                                  43

 

CHAPTER 3: RESEARCH METHODOLOGY                                       44

3.1       Research Design                                                                                 44

3.2       Population of Study                                                                            44

3.3       Sources of Data Collection                                                                 44

3.4       Sample and Sampling Technique                                                       45

3.4.1    Determination of sampling size                                                          45

3.5       Validity of the Instrument                                                                  47

3.6       Reliability of the Instrument                                                              47

3.7       Method of Data Analysis                                                                    47

 

CHAPTER 4: RESULTS AND DISCUSSION                                          49

4.1       Socio-Economic Characteristics of the Respondents                         49

4.1.1    Gender                                                                                                50

4.1.2    Age of the respondents                                                                       50

4.1.3    Marital status                                                                                      51

4.1.4    Respondents’ level of education                                                        52

4.1.5    Staff category                                                                                     53

4.1.6    Level of work                                                                                     54

4.1.7    Division/department/unit                                                                   55

4.1.8    Years of service                                                                                  56

4.2       Nature of Employee Participation in Organization’s Decision

Making                                                                                                57

4.3       Types and Evaluation of Employees Participation in

Organizational Decision Making                                                        59

4.3.1    Types of employees’ participation in organizational’ decision

making                                                                                                            59

4.3.2    Evaluation of employees’ participation in organizational decision

making                                                                                                            60

4.3.3    Levels of employees’ participation in organizations’ decision

making                                                                                                            63

4.4       Relationship Between Organizational Performance and Employee                                    Participation in Decision Making                                                       64

4.5       Factors Influencing Employees’ Participation in Decision Making            65

4.6       Hypotheses Testing                                                                            68

CHAPTER 5: SUMMARY, CONCLUSION AND

RECOMMENDATIONS                                                                 69

5.1       Summary                                                                                            69

5.2       Conclusion                                                                                          72

5.3       Recommendation                                                                               72

5.4       Suggested Areas for Further Research                                               74

 

REFERENCES                                                                                               75

Appendix                                                                                                        81

 

 

 


 

 

LIST OF TABLES

2.1       Dimensions of participative decision making                                    32

4.1       Frequency distribution of respondents according to gender              50

4.2       Frequency distribution of respondents according to age                    50

4.3       Frequency distribution of respondents according to marital status.            51

4.4       Frequency distribution of respondents by level of education             52

4.5       Frequency distribution of respondents by status/category                 53

4.6       Frequency distribution of respondents by level of work                    54

4.7       Frequency distribution of the respondents by division/unit               55

4.8       Frequency distribution of the respondents by their years of

Experience                                                                                          56

4.9       Nature of employee participation in organization’s decision                                     making                                                                                                            57       

4.10     Types of employees’ participation in organizations’ decision                                    making                                                                                                            60

4.11     Evaluation of employees’ participation in organizational                                         decision making                                                                                  62

4.12     Levels of employees’ participation in organizations’ decision                                    making                                                                                                            63

4.13     Effect of employee participation in decision making on                                            organizational performance                                                                64

4.14     Factors influencing employees’ participation in decision making            65

4.15     Z-test differences of nature, type and participation in decision                               making by employees.                                                                        68

 





 

CHAPTER 1

 

 INTRODUCTION

 

1.1       BACKGROUND TO THE STUDY

Every organization grows, prospers or fails because of decisions made by its members. Therefore, effective decision-making demands accurate, timely and relevant information from both management and employees (Ajayi and Omirin, 2007). In the words of Emerole (2015), higher productivity and efficiency of employees in government parastatals is possible with the effective exploitation of human resources. As such, it is worthy to note that human resource could be exploited by allowing employee to participate in decision making.

Employee participation in decision making has become significant in human resource management (HRM), as it is regarded as one of the chief ingredients of employee voice, which many management scholars have observed to be a growing management concept (Essays, 2013).

Employee participation is not the goal nor is it a tool, as practiced in public sectors. Rather, employee participation is a management and leadership philosophy about how people are encouraged to contribute to continuous improvement of the public sectors. Anyanwuocha (2003) explained that public sectors are government or state-owned business organizations, which are usually set up by act of legislation, with the main aim of maximizing public welfare. Moving decision making power downward in public sectors is what employee participation is all about. Employee participation is implemented in the Nigerian public sectors in order to motivate the employees by involving them to make contributions on the progress of the public sector.

In Nigeria, participatory decision making has come a long way. In the words of Akpala, (1982) as cited in Anierobi, (2017), the Nigeria Military Government in 1977 decided to democratize industrial ownership in Nigeria by promulgating the Nigerian indigenization decree part of which provides "that 10 percent total equity share of any enterprise on schedule and should be reserved for workers. This is to ensure that workers have a sense of belonging in their respective organizations. Both the state and Federal government of Nigeria have in the past involved its citizenry in the management of affairs of the state (Anierobi, 2017). Everybody is working for the state because everything you do, be it the private or public sector, it is contributing to the national development of the country. It is in recognition of the significance of participation that the federal military government of Nigeria sometime invited the entire citizenry to participate in deciding whether Nigeria should accept the IMF loan or not (Ezeanya, 2011). After a heated debate by "well meaning" Nigerians, the idea was cancelled. Apart from the Federal and State government being aware of the need to involve citizens in the management of affairs of the state, many companies in Abia State mostly the multinationals are practicing participative decision making (Anierobi, 2017). Suggestion boxes and government journals are means through which employees are represented on the Board of decision makers in the public sectors in Abia state while other way can be personal or group opinion seeking.

From the above it is a clear fact that participative decision making exist in both private and government owned parastatals in Abia state, still yet, some people in other countries and some Nigerians are of the view that real participatory decision making does not exist and cannot exist due to under development, inexperience in democratic process, political instability and economic instability caused by frequent changes in economic policy by the government (Ezeanya, 2011). As such, one of the reason given for the above view is due to the negative attitude of the Nigerian worker to work. They are more interested in what they will get from the employer in terms of salaries and other employment benefit and not the job itself. Such attitudes cannot give rise to effective participation.

As such, 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. A more open and collaborative framework will exploit the talents of all employees (Hewitt, 2002). As viewed by Ezeanya, (2011), participative decision making can be well practiced only in a stable economic environment because of its time-consuming nature and investment in training to enable workers to have a contributing capacity. The Nigerian public sector, particularly the government owned parastatals in Abia state, their attitude to employees is paternalistic and authoritarians. Their activities are often shrouded on secrecy. They are suspicious of the workers and therefore cannot afford to share information or engage them in making decision. There have been some experiences of some departmental heads, they fail to delegate, as they do not go on leaves, while some go, they are on working leave; still attending work, some while on leave lock up certain files/documents in their drawers, thus making handicapped till they resume, whereas participative decision making involves nothing more than sharing information with subordinates.

In the light of the above, this study will critically evaluate the effect employee participation in organizational decision making has on the performance of public sectors of Abia state particularly, Pacesetter FM, Umuahia and Broadcasting Corporation of Abia state from 2011 to 2016

 

1.2       STATEMENT OF THE PROBLEM

Decision-making seems to be the most appropriate task of top management in all organizations. Obviously, this has direct or indirect negative impacts on those companies, in terms of employees' commitment, cooperation between managers and employees and finally on productivity. That is, it is maintained that when groups are excluded from effective roles in decision-making affecting them, they tend to react in aggressive and polarizing ways (McCaffrey et al.1995).

Employees are the engine room of any organization and if they are not considered be involve in organizational decision making it could result to stagnancy of the firm, industrial conflicts, decrease in productivity of the firm etc. Nmamseh (2016) supported the above after identifying that non- involvement of employees in the decision-making process could lead to job dissatisfaction which may eventually result to loss of manpower, employee turnover and low productivity among others that may adversely affect the fortunes of organizations.

Currently in Abia state, due to the traditional and bureaucratic leadership style present in the making of decisions in public sectors present in the state, most especially Pacesetter FM and Broadcasting Corporation of Abia state, there is a dire need to review the nature of participatory decision making to give employee a higher participatory level in the making of decision as none of the government owned parastatals in the states are meeting standards in serving the public, thereby not adding value to the growth of the state.

In other to address these problems, this study will seek to find out how employees participate in organizational decision making has affected the performance of Pacesetter FM and Broadcasting Corporation of Abia state.

 

1.3       RESEARCH OBJECTIVES

The general objective of this study is to find out the effect employees participation in organizational decision making has on the performance of public sectors of Abia state particularly, Pacesetter FM and Broadcasting Corporation of Abia state.

The specific objectives are to:

      i.          identify the nature and types of participation in decision making among the employees;

     ii.         determine the relationship between employee participation in decision making and organizational performance;

   iii.         Identify the different levels of employee participation in decision making of the organizations; and

   iv.         Identify the factors that influence employee participation in decision making among Pacesetter FM and Broadcasting Corporation of Abia state

 

1.4       RESEARCH QUESTIONS

The study will answer the following questions:

      i.         What are the nature and types of participation in decision making among the employees?

     ii.         Is there any relationship between employee participation in decision making and organizational performance?

   iii.         What are the different levels of workers’ participation in decision making of the both   organizations?

   iv.         What are the factors influencing employees’ participation in decision making in Pacesetter FM and Broadcasting Corporation of Abia state?

 

1.5       RESEARCH HYPOTHESES

 The hypothesis for the study is stated thus:

HO1:    There are no natures nor type of employee participation among Pacesetter FM and Broadcasting Corporation of Abia state

HO2:       There is no significant relationship between employee participation in decision making and organizational performance of Pacesetter and Broadcasting Corporation of Abia state.

HO3:       There is no significant difference in the level of participation in decision           making of workers of both organizations.

HO4:       There are no factors influencing employee participation in decision making among Pacesetter FM and Broadcasting Corporation of Abia state.

 

1.6       SIGNIFICANCE OF THE STUDY

Employee participation has often been heralded as a solution, to low institutional effectiveness and performance.

The empirical significance this study will be beneficial to the management of these parastatals by giving enough insight into the benefits of employee participation in decision making, make clear to managers what participative management stands for hence, reducing the fear often harboured by these managers. Staff, students, and the society at large are equally the potential beneficiaries of the findings of this study. In Nigeria, the institutionalization of worker participation within the nation’s industrial relations system was championed by several scholars such as Adewumi (1997), Fashoyin (1992) and Imaga (1994) who suggested that worker participation in management decision making will reduce industrial conflict, raise workers’ productivity, ensure rapid grievance procedure and motivate workers. Also, there is now a substantial body of evidence demonstrating the benefits to organization for having a strongly committed workforce. According to Mayer and Martin (2010), employees who are committed and especially affectively committed to an organization are less likely to leave and more likely to attend regularly, perform effectively, and be good organizational citizens.

The theoretically significance of this study is equally hoped that the findings of this study would provide basis upon which further research could be carried out, thereby acting like a basic for other related research work to be improved upon.

Strictly speaking, growing employee participation research, particularly in the developed world, has pointed to the significant role that it can play in enhancing the growth and survival of organizations. It is on this premise that this study set out to evaluate employee participation in decision making and its effect on organization performance of government parastatals in Abia state, Nigeria.

 

1.7       SCOPE OF THE STUDY

The research work was designed to study the employee participation in organizational decision making in public sector in Abia state, with a special reference to the Pacesetter FM and Broadcasting Corporation of Abia state, between the span years of 2011- 2016, this period was chosen so as to get a more focused and directed work, focused and directed work in the sense that it was this period that most organizational started understanding the need of employees to participate in decision making of the organization and as such extended the means in which employees can participate in the making of decision in an organization.

The geographical scope of both organizations is in Umuahia, Abia state, Since Umuahia being the capital of Abia state is the center of all public administrative functions of the state, as such information gathered will be of vital use to this work.

While the unit scope covers both the management and employees of Pacesetter FM and that of Broadcasting Corporation of Abia state since the study is about them.


1.8       LIMITATIONS OF THE STUDY

The following were the major limitations faced by this study:

Limited literature in the research field was a major constraint as there were limited research documents and materials relevant to the study. With the aid of some private online library, I was able to source more materials.

Also, the information gathered by the researcher was inadequate due to organizational secrecy and public service bureaucracy, although some very considerate employees were able to give me some information but with strict confidentiality, so as to protect their job.

 

 

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