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STAFF INVOLVEMENT IN DECISION MAKING AND HOTEL PERFORMANCE IN UMUAHIA, ABIA STATE

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Product Code: 00009635

No of Pages: 90

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ABSTRACT


The study examined the staff involvement in decision making and hotel performance in Umuahia, Abia State. The objectives of the study are; to examine the extent to which staff involvement in decision making influence staff productivity in hotel establishments in Umuahia, Abia State, to determine the influence of staff involvement in decision making on hotel productivity, to examine the extent to which staff involvement in decision making influence sales growth in hotel establishments and to identify the factors militating against staff involvement in decision making in hotel establishments in Umuahia, Abia State. To achieve the objective of the study, survey research design was adopted. The researcher adopted primary data in getting the required information through the use of structured questionnaire. The population of the study is 38 registered hotels in Umuahia, Abia State with 520 staff strength. The sample size of the study is 226 after adopting Taro Yamane formula. In analyzing the data, simple regression analysis was used. The findings revealed that staff involvement in decision making has a significant influence on staff productivity in hotel establishments. The findings further revealed that staff involvement in decision making has a significant influence on hotel productivity in Umuahia, Abia State. The findings also revealed that staff involvement in decision making has a significant influence on sales growth of hotels in Umuahia, Abia State. However, the study recommends that Hotels should provide an enlightenment program for workers on their rights to seize the opportunity of involvement in decision making. Also, hotels should liberalize management structure so as to allow for greater workers involvement.






TABLE OF CONTENTS


CHAPTER 1: INTRODUCTION

1.1 Background of the study                                                                                                   1

1.2 Statement of the problem                                                                                                 5

1.3 Objectives of the study                                                                                                     6

1.4 Research questions                                                                                                           6

1.5 Research hypotheses                                                                                                         7

1.6 Significance of the study                                                                                      7

1.7 Scope of the study                                                                                                 8

1.8 Operational Framework                                                                                                 9

CHAPTER 2: REVIEW OF RELATED LITERATURE

2.1 Conceptual framework                                                                                                     10

2.1.1 Decision Making                                                                                                13

2.1.2 Organizational Performance                                                                                          13

2.1.3 Forms of Involvement.                                                                                                  16

2.1.4 Participative Decision Making Indicator                                                           17

2.1.5 Benefits of Employee Involvement in Decision Making                                              19

2.1.6 Enhancing Hospitality Productivity through Employee Involvement                                     24

2.1.7 Effects of Worker Involvement in decision-making hospitality growth.                        26

2.1.8 Relationship between Employee Involvement in Decision Making

and hospitality performance                                                                                                   28

2.1.9 Impact of Employee involvement in decision making on Job Satisfaction,

Employee Commitment and Employee Productivity.                                                            29

2.1.9.1 Job Satisfaction                                                                                                           30

2.1.9.2 Employee Productivity                                                                                               31

2.1.9.3Employee Commitment                                                                                               32

2.2 Theoretical framework                                                                                                     33

2.2.1 Human relations and Participatory Theory.                                                                  33

2.2.2 Agency theory                                                                                                               34

2.2.3 Stakeholders Theory                                                                                                      35

2.3 Empirical review                                                                                                              36

2.4 Summary of related literature                                                                                           46

CHAPTER 3: METHODOLOGY

3.1 Research design                                                                                                                48

3.2 Area of the study                                                                                                              48

3.3 Population for the study                                                                                                   48

3.4 Sampling and sampling technique                                                                                    49

3.4.1 Sample size determination                                                                                            49

3.4.2 Sampling Technique                                                                                                      50

3.5 Instrument for data collection                                                                                          50

3.6 Validity of the instrument                                                                                                51

3.7  Reliability of the instrument                                                                                            51

3.8 Method of data collection                                                                                                52

3.9 Method of data analysis                                                                                                   52

CHAPTER 4: RESULTS AND DISCUSSION

4.1 Results                                                                                                                              53

4.1.1 Socio-economic Characteristics                                                                                    53

4.2 Analysis of research questions                                                                                          54

4.3 Test of hypotheses                                                                                                             59

4.3.1 Hypothesis one                                                                                                               59

4.3.2 Hypothesis two                                                                                                               60

4.3.3 Hypothesis three                                                                                                              61

4.3 Discussion of Findings                                                                                                        63

CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary                                                                                                                              65

5.1.1 Restatement of the Problem                                                                                             66

5.1.2 Description of Methods Used                                                                                           67

5.1.3 Major Findings                                                                                                                   67

5.2 Conclusion                                                                                                                             68

5.3 Recommendations                                                                                                                  68

5.4 Contribution to knowledge                                                                                                     69

5.5 Suggestion for Further Studies                                                                                                69

 

 

 


 

 

CHAPTER 1

INTRODUCTION


1.1 BACKGROUND OF THE STUDY

The hotel industry being a vital part of the wider hospitality industry occupies an important place in the economy of most countries, the industry was forecast to generate 555 billion U.S dollars in revenue in 2016 (Smith, 2010).  The main purpose of hotels is to provide accommodation, food and drink to travelers (Wellington, 2015). They are meant to provide a hospitality service that is basically composed of accommodation, food and drink but in a warm friendly environment (Wilson and Ariffian, 2012). However, this is usually extended to cover the aspect that people need a clean, comfortable place to rest and sleep, to have quality food service, to socialize and meet others and to access stores and shops within a secure surrounding while travelling (Wilson and Ariffian, 2012). There are various types of establishments that are used to provide accommodation namely an inn, hotel, motel or motor inn, lodge, tourist home or guest house, bed and breakfast, hostel, condominium, hospital, resort, commercial hotel, conventional hotel or conference centre, casino hotel, health spa, and nursing home or hospice (Poretla and Thanassoulis, 2015).

Over the years, employee unrest and agitations has astonished many organizations the world over and the non-involvement of employees in the management process has accounted for many of these. Decision-making in organizations has been the domain of top management but without the involvement of those on the lower treads of the ranking of management, yet they are the very ones expected to see to the implementation of these decisions (Adu-Amankwah, &Kerster, 2019).

The non-involvement of lower level management in decision-making also means that vital input from employees is often not factored into decisions made. This gives rise to the glitches that are experienced in organizations when it comes to the acceptance of these decisions and its implementation because employees feel insulted and of no importance because their views were not sought. They also do not feel involved in the decision making process but rather decisions are taken and ‘pushed down their throats’ (Adu-Amankwah, &Kerster, 2019).

Worker involvement implies arrangements designed to involve staff in the enterprises decision making process. This allows staff involvement in the initiation, formulation and implementation of reasons 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 king of decisions which have direct bearing on them.

Adu-Amankwah, &Kerster (2019), contends that worker involvement consist 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 staff. This serves to create a sense of belonging among the staff as well as a conducive environment in which both the staff would voluntarily contribute to healthy industrial relations.

Employee involvement in decision-making creates a sense of belonging among staff and an agreeable environment in which both management and employees willingly contribute to healthy relations (Noah, 2012). Thus, staff’ involvement in decision-making can be seen as a motivational tool for encouraging high productivity and positive attitude (Noah, 2012). Skepticism regarding the relevance and value of employee participation in decision-making to firm performance persists, and as such this study assesses whether employee participation in decision-making has a significant impact on firm performance.

The concept of worker involvement 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 (Noah, 2012). It refers to any arrangement which is designed to involve employees (staff) in 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 decision, all those who are to be affected by these decisions (including the staff) would be involved in its formulation and implementation.

In recent times, scholars have directed increasing attention to the issue of worker involvement and its broader corollary, industrial democracy (Mankidy, 2014). These concerns reflect a growing interest in finding ways to make work more meaningful and satisfying to the staff. This rest on the belief that the organisation goals of high productivity and harmonious industrial relations are best achieved when the higher level of the human elements (staff) are satisfied. 

The implication of these society, rising education and wider contact among people resulting from the break-up barriers was to shift these aspirations to a more organisation of work greater opportunity for personal development and under scope in exercise of initiatives.

Employees have understood that organizations want to increase employee involvement, given that the involved employees were willing to devote themselves fully in their work by way of a positive role (Adewumi, 2013) and remain in them longer work (Adu-Amankwah&Kerster 2019). 

Employee involvement concerns the extent to which individuals use all the resources of cognitive, emotional, and physical to perform roles associated with the job (Greenberg, 2011). Employees who feel involved and willing to engage in their work generally is the employee who has the characteristics of an energetic, fun, enjoyable, and effective in carrying out their work (Manning & Curtis 2009).

Pateman (2010) is of the view that participative decision making can be possible in a certain sector of the economy and not in all government owned enterprises and parastatal because of the government intention to mobilize popular support for development purposes.  He goes further to say that staff involvement in the multinational companies, on the other hand has at best remained elusive.  Most of these companies are controlled by and depend on their parent bodies abroad for policies and decision.  Among the indigenous employers, particularly the small and medium sized organization, their attitude to staff is paternalistic and authoritarians.  Their activities are often shrouded on secrecy.  They are suspicious of the staff and therefore cannot afford to share information and decision with them.  We have experiences of 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 this recognition, there has been no study on the impact of worker involvement in decision making and productivity. This paper or research work attempts to fill this gap by providing data on the level of worker involvement in decision making and other factors which aid or hinder the observed level of involvement for the purpose of understanding the type of involvement system, the general attitude of staff towards staff involvement and the implication of staff involvement on organizational performance.

 

1.2 STATEMENT OF THE PROBLEM

There is no democratic participation/involvement of staff in the decision making process in most of our organizations especially in hospitality industry. Consequently, the staff are forced to cope with the autocratic style of government. Specifically, the refusal of management of organizations to recognise the human element in production and services through greater involvement of employees in its management decision-making would lead to create serious human problems. The staff are restricted and denied the opportunity to utilize their potentials fully and effectively. Under such management control, the employees engage in negative behaviours like absenteeism, apathy, low commitment and low productivity. Specifically, the refusal of work organisation to recognize the human factor in industrial production through greater involvement of employees in its management decision making would tend to create several human problems in this setting. A worker is a social being who brings his personality, hopes, aspirations, anxieties, feelings and attitude to the work place. He seeks satisfaction and meaning in his work as he does in other spheres of life. Despite these evidences of the existence of participative management in the Nigerians industrial set up, some people in other countries and some Nigerians are of the view that real participatory management 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 federal government.  It is unfortunate that most hospitality establishments if not all do not involve their staff during decision making. The decision is only made by the owner of the establishment and their managers. Most staff are educated and knowledgeable enough to give suggestion that can lead to the growth of that organization. However, denying them that chance to involve in decision making would hamper the performance of that organization (e.g. hospitality establishment). 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 staff have a contributing capacity.  Also the negative attitude of the Nigerian worker to work does not encourage participatory management.  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 definitely cannot give rise to effective participation.


1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to examine staff involvement in decision making and hotel performance in Umuahia, Abia State.

The specific objectives of the study are to:

(i)             examine the extent to which staff involvement in decision making influence staff productivity in hotel establishments in Umuahia, Abia State.

(ii)           determine the influence of staff involvement in decision making on hotel productivity in Umuahia, Abia State.

(iii)         examine the extent to which staff involvement in decision making influence sales growth in hotel establishments in Umuahia, Abia State.

(iv)          Identify the factors militating against staff involvement in decision making in hotel establishments in Umuahia, Abia State.


1.4 RESEARCH QUESTIONS

The following questions guided the study

(i)             To what extent does staff involvement in decision making influence staff productivity in hotel establishments in Umuahia, Abia State?

(ii)           What is the influence of staff involvement in decision making on hotel productivity in Umuahia, Abia State?

(iii)         To what extent does staff involvement in decision making influence sales growth in hotel establishments in Umuahia, Abia State.

(iv)          What are the factors militating against staff involvement in decision making in hospitality establishments in Umuahia, Abia State?


1.5 RESEARCH HYPOTHESES

For the purpose of the study, the following hypotheses is stated in null form

H01: Staff involvement in decision making has no significant influence on staff productivity in hotel establishments.

H02: Staff involvement in decision making has no significant influence on hotel productivity in Umuahia, Abia State.

H03: Staff involvement in decision making has no significant influence on sales growth of hotels in Umuahia, Abia State.


1.6 SIGNIFICANCE OF THE STUDY

The study will be significant to the following group of people

Hotel establishments: the study will enable hotel industry to know the influence of staff involvement in decision making on hospitality performance. The findings of this study will also help hotel establishments to know how staff involvement in decision making will affect both staff job commitment and job performance. Also the findings from this study will help hotel establishments to identify those factors affect staff involvement in decision making in hospitality establishments.

Employees: the findings and recommendations of is study will also educate employees on the need to involve and participate in decision making for the purpose of enhancing their productivity and increasing their performance.

Government: The findings of this study will help government and policy makers especially in the area of participatory management where the managers and other staff of an organization can as well involve in decision making process of an organization (like hotel establishments).

Students; this study will enlighten students of this noble institution and other institutions on staff involvement in decision making and hotel performance.

Researchers: this study will serve as a reference material to researchers who would want to carry out a similar topic in future.


1.7 SCOPE OF THE STUDY

The content scope is staff involvement in decision making and hotel performance. The geographical scope is Umuahia, Abia State. While the unit scope are the staff of the selected hotels in Umuahia, Abia State.

  

1.8 Operational Framework

The operational framework showing the independent variable (staff involvement) and the dependent variable (hotel performance).


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