EMPLOYEES PARTICIPATION IN DECISION MAKING AND ORGANIZATIONAL PRODUCTIVITY :( THE STUDY OF ABUJA MUNICIPAL AREA COUNCIL (AMAC) ABUJA)
The study is a perception survey of employees’ participation in decision making and organizational productivity in Abuja Municipal Area Council. It defines employees’ participation in decision making as a process of sharing influence in decision making among individuals who are otherwise hierarchically unequal. It assumes that involvement of employees in decision making increases their commitment and organizational productivity. The research question addressed the extent of the relationship between employee’s participation in decision making and increase employed commitment and organizational productivity among some selected entrepreneurs, managers and staff of various businesses and civil servants in Abuja Municipal Area Council (AMAC). A descriptive research design was used in executing the study using 75 randomly selected respondents from a population of 100 employees for questionnaire administration. However, 50 questionnaires were returned. In addition, there were face to face interviews and collection of secondary data for the study. The core aspect of the study is the use of chi-square statistically analytical technique to analyze primary data obtained. Results from the data analysis indicated that significant relationship exists between employee’s participation in decision making and increased employee’s commitment and organizational productivity. The research therefore concluded that significant relatively, exists between employee’s participation in decision making and organizational production in Abuja Municipal Area Council (AMAC). Also we recommend among others: encouragement of work teams, training and re-training of employees, improvement of reward system and improvement of internal communication channels.
TABLE OF CONTENTS
Title page- - - - - - - - - - - i
Declaration - - - - - - - - - - -ii
Approval page- - - - - - - - - -iii
Dedication - - - - - - - - - -iv
Acknowledgement- - - - -- - - - - -v
Abstract - - - - - - - - - -vi
Table of contents - - - - - - - - -vii
List of Tables- - - - - - - - - - -viii
CHAPTER ONE - - - - - - - - -
1.1 Introduction - - - - - - - - -
1.2 Background to the study - - - - - - -
1.3 Statement of Problem - - - - - - - -
1.4 Objectives of the study - - - - - - -
1.5 Research Questions - - - - - - - -
1.6 Statement of the Hypothesis - - - - - - -
1.7 Significance of the study - - - - - - -
1.8 Justification of the study - - - - - - -
1.9 Scope of the Study - - - - - - - -
1.10 Definition of the study - - - - - - -
2.0 Introduction - - - - - - - - -
2.1 Conceptual Framework- - - - - - - -
2.2 Theoretical Framework- - - - - - - -
2.3 Literature on the subject matter- - - - - - -
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Area of study- - - - - - - - - -
3.1 Research Design- - - - - - - - -
3.2 Sources of Data- - - - - - - - -
3.3 Study Population and Determination of Sample Size- - - -
3.4 Research Instrument - - - - - - - -
3.5 Procedure for Data Collection- - - - - - -
3.6 Technique of Data Analysis- - - - - - - -
3.7 Limitation of the studies - - - - - - -
CHAPTER FOUR: DATA ANALYSIS, FINDINGS AND DISCUSSION
4.0 Data Analysis, Findings and Discussion- - - - - -
4.1 Findings of the study - - - - - - - -
4.2 Discussion of the findings - - - - - - -
CHAPTER FIVE: SUMMARY OF FINDINGS CONCLUSIONS AND RECOMMENDATIONS
5.0 Summary of findings - - - - - - - -
5.1 Conclusions - - - - - - - - -
5.2 Recommendations - - - - - - - -
5.3 Proposal for further reading - - - - - - -
Bibliography - - - - - - - - -
Appendix I: Letter of Introduction - - - - - -
Appendix II: Questionnaire - - - - - - -
LIST OF TABLES
Figure 2 ……………………………………………………………………..16
Figure 4.2- 4.12……………………………………………………………..25
Figure 2 ………………………………………………………………….47-59
CHAPTER ONE OUTLINE
1.2 Background to the study
1.3 Statement of Problem
1.4 Objectives of the Study
1.5 Research Questions
1.6 Statement of the study
1.7 Significance of the study
1.8 Justification of the study
1.9 Scope of the study
1.10 Definition of terms
Employee’s participation in organization decision making platform remains a key factor to determining the performance of individuals and groups in an organization.
Organizational productivity is the result of quality attributes of employees.
Employee’s participation in decision making bring about commitment that leads to increased productivity in various aspects of the organization effort of success.
The effect of employee’s participation in decision making of an organization cannot be over emphasized, as employee’s participation in decision making can be beneficial to any company in many ways such as improving commitment, productivity, morale and harnessing internal resources and team work.
Any organization that want a total commitment of their employee’s must give room for employee’s participation in decision making and organization productivity which is the essence of this research project work.
1.2 BACKGROUND TO THE STUDY
Participation management is the practice of empowering employees to participate in organizational decision making. This research grew out of the human relations governance in the 1920s and is based on some of the principles discovered by scholars doing research in management and organizational studies, such as the Hawthorne effect (Dunlop, 1958). While senior managers still retain final decision making authority when participatory management is practiced, employees are encouraged to voice their opinions about their working conditions in a safe environment protected from the potential defensiveness of the middle managers who they might criticize (Imaga, 1994).
According to Adu-Amankwah and Kester (1999) in the 1990s, participatory management was revived in a different form through advocacy of organizational learning practices, particularly by clients and students. There ares some criticism of participatory management particularly because of the difficulty of combining this practice with a more financially oriented approach to restructuring that may require downsizing. Above all, employee’s participation indecision making can be beneficial to any company in many ways such as improving commitment, productivity, morale and increasing internal resources and teamwork.
Apparently, when employees are involved in making decisions, they gain professional and personal stake in the organization and its overall success. This commitment leads to increased productivity as employees are actively participating in various aspects of the company and wish to see their effort succeed overall. This is not only beneficial to company growth but is also on the job training for workers. Thus increased in responsibility that expanded employees’ skills sets, preparing them for additional responsibility in the future (Kester, Zammut and Gold, 2002).
Noah (2006) posited that actively engaging workers in the decision – making process increased overall company morale. Many companies have a distinct separation of power between management and workers; however active employee involvement lowers that gap in the lines of communication between supervisors and employees. As a functioning participant in the decision-making process, employees understand their ideas are an important contribution to the company, and give them the power to influence the out-come of their work, leading to increased job satisfaction and a positive attitude, not only toward their position but also to the company itself.
In addition, using employees in the decision-making process, rather than out – sourcing, saves money and also affects organizational productivity positively when they are willing and committed to organizational goals. Willingness and commitment can be exhibited by employees towards their job if they are involved in decision making and participating in the affairs of the organization (Agwu and Olele, 2014).
Employee’s participation in decision making has been widely recommended as means of improving the quality of work life. However, when considering employees participation in decision making in the work place, one must differentiate between two levels. The first is horizontal participation – involves interaction between teams, co-workers, or peers. The second is vertical participation (direct and indirect) – involves interaction with one’s superiors. Both types of participation are important components of the quality of work life. An organization which encourages both types will allow decision making at the lowest feasible at hierarchical level.
In short to achieve organizational productivity, employee’s participation in decision making is imperative, if employees have this role to play as he/she performed better in organizations. The main purpose of this study is to investigate the workers participation in decision making and its impact on organizational productivity. Organizations should focused more on employee participation in decision making, as this will increase job satisfaction and a positive attitude, not only toward their position but also to the company itself.
1.3 STATEMENT OF THE PROBLEM
Theoretically, employees’ participation in decision making is assumed to increased commitment of the work force, thus leading to improved productivity. There are popular belief that employees participation in decision making assures industrial harmony by creating sense of ownership among employees, thereby leading to sustainable industrial relationship between employers and employees. It is against this backdrop that we carry out an empirical study on the theoretical proposition of the relationship between employee’s participation in decision making and employee’s commitment to the company’s mission and vision and its impact on organizational productivity. This work is to find out the extent of convergence or divergence between theory and practice in Abuja Municipal Area Council.
1.4 OBJECTIVES OF THE STUDY
The purpose of this is to investigate the workers participation in decision making and its impacts organizational productivity. The specific objectives of the study are:
1. To determine the extent of the relationship between decision making of employees’ commitment and whether it increased employees productivity in Abuja Municipal Area Council (AMAC).
2. To determine the extent of the relationship between employees participation in decision making and organizational productivity.
3. To determine the challenges facing employees participation in decision making within Abuja Municipal Area Council (AMAC).
4. To make suggestions for managerial policy implications in the light of the funding of the study.
1.5 RESEARCH QUESTIONS
In this study, attempt will be made to provide answers to the following questions;
i. Does any significant relationship exist between employees participation in decision making and increased employees commitment in Abuja Municipal Area Council.
ii. Does any significant relationship exist between employees’ participation in decision making and increased organizational productivity?
iii. What are the challenges facing employees’ participation in decision making within Abuja Municipal Area Council (AMAC)?
iv. What are the available incentives provided by the employers to support employee commitment on decision making AMAC?
1.6 STATEMENT OF THE HYPOTHESIS
In order to justify the purpose of the study and make answers available to the question raised, the following three hypotheses are formulated:
Ho: There is no significant relationship between employees’ participation in decision making and increased employees commitment in Abuja Municipal Area Council (AMAC).
H1: There is significant relationship between employees’ participation in decision making and increased employees commitment in Abuja Municipal Area Council (AMAC).
Ho: There is no significant relationship between employees participation in decision making and increased organizational productivity in Abuja Municipal Area Council (AMAC).
H1: There is significant relationship between employees’ participation in decision making and increased organizational productivity in Abuja Municipal Area Council (AMAC).
Ho: Employees participation in decision making does not influence organizational productivity.
H1: Employees participation in decision making does influence organizational productivity.
1.7 SIGNIFICANCE OF THE STUDY
This study is an attempt to explore the relationship of human resource practice (employees’ participation), with organizational productivity. However, it is partly a new subject for research in Nigeria. Looking towards all scholarly studies completed in Nigeria, it was observed that there are insignificant research works done on this subject matter and this has created a wide gap, which needed to be filled up by the present and the near future human resource management research scholars. Finally, it is to aid management of business organization and firms to embrace this scheme to better their organizational productivity and growth, also be able to meet the challenges of change in the future.
1.8 JUSTIFICATION OF THE STUDY
The reason why the research is being conducted is to investigate the workers participation in decision and its impact on organizational productivity using Abuja Municipal Area Council (AMAC). The study is an empirical research of the impact of participatory decision – making approach on workers commitment and organizational productivity. This study is to explore the effect of this approach since the demand and call for private enterprises is considered a great source of organizational productivity better.
In addition, this study is extremely important in the light of current Nigeria’s government drive to revamp Nigerian economy by encouraging local production; private business creation and economy diversification development policy.
Moreover, the study will provide recommendations on how to ensure employees participation in decision – making for better and improved commitment to organization productivity, human resources development and the achievement of organizational goals.
1.9 SCOPE OF THE STUDY
The study investigates the employee’s participation in decision making and its impact on organizational productivity using Abuja Municipal Area Council (AMAC) as a study. The study basically is found out the extent of convergence or divergences between theory and practice in the drive to achieving organizational productivity.
1.10 DEFINITION OF TERMS
i. Decision Making: It is cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities.
ii. Commitment: The state or quality of being dedicated to a cause or activity.
iii. Productivity: This is a measure of the efficiency of production, that is of production’s capability to create income, which is measured by the formula of real output value minus real input value.
iv. Management: This is made up of top and middle level management. Top management includes shareholders, boards of directors and managing director while the middle management includes heads of department, managers, deputy and assistant managers.
v. Top Management: This is management paradigm in which decision starts from highest echelon to the lowest echelon of an organization, the participation of employees in decision making extremely or does not exist.
vi. Bottom-up management: This is modern management paradigm in which decision making starts from the lowest echelon to the highest echelon of the organization. This encourages brainstorming between the management and the employees before decisions are taken on a particular issues where an sentiment industries democracy
vii: Performance: This is about employee input-output measured relationship. Performance is employee productivity.
viii: Motivation: This describes the level of desire workers feel to perform, regardless of the level of joy or happiness.
xi: Human Capital: This refers to the skills, knowledge and experience possessed by an individual, this formed the terms of terms of value or cost to an organization.
Adu- Amankwah, .K. and Kaster, G. eds (1999). How to make democratic participation a success: An African Trade Union Challenge Rotterdam: Textua.
Agwu, M. and Olele, J. (2014) Management practices Lagos: Link books Publication.
Dunlop, J. (1958). Industrial Relations System. New York: Holt.
Imaga, E.U. (1994)Industrial Democracy in the Third World: A case study of Nigeria and India, New Delhi South Asian Publishers.
Noah, Y. (2006) Managing Business Environment in Nigeria, Lagos: AK printing Company.