Impact of Employees Participation in Decision Making in Organizations (a Case Study of Star Paper Mill Ltd Aba)

 

ABSTRACT

This study was conducted at star paper mill Limited Aba. It examined the impact of employees participation in decision making in organisation. it seek to find out if there is any co-relationship between the two aspects. The study made use of two hypotheses, which tested different aspects of the research topic. Hundred and three (103) questionnaire were administered to the company; ninety one (91) questionnaires were returned and were adequately filled. The ninety one returned questionnaires formed the sample size of the study. The statistical chi-square method was used in the analysis of the hypothesis.  The study revealed that there is relationship between employee’s participation in decision-making and increase in productivity. lack of communication between the management and the workforce has co-relationship with productivity  to the workers based on these functions the following recommendations were made for participation to yield the expected result, management should ensure that every agreement reached during consultations is implemented employees should be allowed to air their view in meeting etc. these recommendations, not doubt will make it possible for the expected result of employee participation in decision making in organization.

 

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Decision making in an organization is not exempted from being difficult and precious due to the effect it has on workers’ productivity decision making is one of the crucial activities of management and it is always at the heart of Administration (Onuha 2005).

Management philosophy was profit maximization at the expense of workers welfare, workers were not adequately take care of, employees are not allow to participate in the management decision – making of the organization which can lead to conflict between the management and the employees.

The down of the industrial revolution open the door for the emergence of several new management orientations of which employee participation in decision – making was one of them. Employee’s now recognize trade union and involves them before certain key decision are taken especially those ones that affect workers. The level of communication between employees and the employers has increased and this cut down the ever increasing conflict between management and workers. Employees participation in decision making promotes industrial democracy which is seen as the only way to enhance peaceful co – existence between the bourgeoisie and the proletariats.

    1. PROFILE OF THE COMPANY OF CASE STUDY

Star paper mill is a private limited liability company located at N0 114/116 Aba Owerri Road, Umungasi, Aba, Abia, Nigeria. It is a paper conversion company which the objective was to manufacture medium grammage (MG), duplex board and cardboard from waste paper, star paper mill started with the brand names “Three Star stationary” and “Star Tissue Papers” it chief executive, Chief Nnanna Kalu and his sons making up the board of directors, the management team is made up of employees who are not members of the family.

The off – cuts from the conversion operations aroused the ingenuity of the chairman/ managing director of the company Chief Nnanna Kalu into commissioning a study or research on master paper recycling plant at Owerri Nta  in September 29th, 1984.

This plant opened to star paper mill the whole technology and slope of master paper recycling plant which has an installed capacity plant of  2500 metric tones of tissues jumbo ream per annum and has a 90% local raw materials sourcing. The company has the caliber of management and technical staff that enable it cope with the master paper recycling technology. It also embarks on intensive training of it technical and production workers the company has sufficient financial resources to carry out it operation. It has credit line with commercial banks, it also has an aggressive marketing policy aimed at capturing card – board and exercise book markets  bringing about increase sales.

Certain factors seems to hinder the company’s activities such as:

  1. The general economic condition.
  2. Difficulty in obtaining foreign exchange for importing spare parts
  3. Difficulty in the transportation of finished goods from one place to another.
  4. Order time constraint etc.

Irrespective of these constraints the company still operates a considerable high level of success. A large part of this success can be attributed to the decision making process of the company an example of this is the recycling plant, the production of lad’s sanitary pad establishment Owerri – Nta was made possible through the research and development unit.

    1. STATEMENT OF THE PROBLEM:

It has been observed that the decision made by any company affect its workforce positively or negatively. The human element constitutes the life wire of any organization.

This study seeks to identify among the factors, the effect of employee participation in decision – making on organization’s productivity. There are so many factors that hinder high productivity in every work place. Such as inability of management to encourage team work, lack of proper communication between managers and their subordinates, inability of management to allow the works partake in certain areas of decision – making, has most times made management not to meet set largest. In effect if the trade union is sidelined during decision- making, they end up selling any decision of the management as bring unfavourable and could advise their members not to uphold such decision and undoubtedly, productivity suffers.

Any organization that fails to acknowledge employee participation faces such consequences as:

  1. Increase in conflict between the management and the employees or their representatives.
  2. Low productivity as a result of employee non- challant attitudes.
  3. Incessant sabotage and strike.

On the other hand, the larger society will also suffer, unemployment rate will increase and firms may cut down workforce as a result of their inability to make profit. The nation per – capital income will fall. This study will ascertain if there is any relationship between direct and indirect participation in decision – making and productivity.

    1. OBJECTIVE OF THE STUDY

The objective of this study is to investigate the effect of employee’s participation in decision- making in organization. Base on the above, this study shall then find out:

  1. Whether employee’s participation in decision – making enhances increase in productivity.
  2. Other factors that could yield increase productivity in work place.
  3. Determining among these factors, from the employee participation, which is more pruned in increase productivity.
  4. Recommendations of various ways through which organization can boost  productivity.
    1. RESEARCH QUESTION
  1. Does employees participate in decision- making enhances productivity increase?
  2. Is there some ways through which organizations can boost productivity?
  3. Is there some factors that could yield increase in productivity in workplace?
  4. Could there be determination among employees participation, which will increase productivity?
  5. Apart from participation in decision – making do you think communication and team work affect productivity?
    1. RESEARCH HYPOTHESIS

Base on the objective of this study, coupled with the problems stated earlier, the research put forward the following hypothesis

HYPOTHESIS  I

HO: There is no relationship between employee’s participation in decision – making and increase in productivity.

HI:    There is relationship between employee’s participation in decision – making and increase in productivity.

HYPOTHESIS II

HO:  lack of communication between the management and the workforce has no co- relationship with productivity of the workers.

HI:    lack of communication between the management and te workforce has co- relationship with productivity of the workers.

    1. SIGNIFICANCE OF THE STUDY

    The study will be valuable to different categories of people. Among these are: the organization, the company manager /management team, workers, students and the Nation.

    Significance of this study to the organization is that star paper mill Aba will understand what employee’s participation in decision – making is all about, the effects it has on their employee’s productivity.

    Company manager / management team will be enlightened on the need to create enabling environment in the workforce that could make for worker participation in decision – making. They will understand that it is not only money that motivates rather the physical environment of the work place affect. Productivity. This study will help them boost employee’s morale and Job satisfaction which in turn increase productivity.

Workers will greatly participate when they know that their opinions are sought for.

Social and management student at different educational levels will gain more knowledge from this work and this be able to advice and guide individual an corporate bodies employees morale.

The Nation at large will benefit from the study because if productivity increased, the nation per- capital income will increase as more workers are employed when profit is made.

    1. SCOPE OF THE STUDY

          This research work is restricted to star paper mill Aba. The area is covered is limited to effect of employees participation in decision making on organization productivity.

    1. LIMITATION OF THE STUDY

        The research would like to cover as much area as possible but it is limited because circumstances which was beyond her control. The constraints could be seen as follows:

  1. FINANCE: The researcher was hampered by lack of money during the research work. Little or no money had limited access to as much data as possible.
  2. TIME: The researcher had little or no time when carrying out the research work due to the tight academic schedule.
  3. RAINFALL: Rainfalls also disrupted the researcher schedule during his project work.
  4. Some of the respondents whom questions were thrown to, show lukewarm/non-challant attitude towards answering their questions.

1.9   DEFINITION OF TERMS

This page will serve as dictionary of this report. It will help the clarify some certain concepts and give better understanding as used in this work, the terms used in this work are as follows:

Motivation, productivity, decision, participation, organization, effect, attitude, performance etc.

MOTIVATION: It is an act of stimulating an individual to do something. Motivation is the inner most drive that a person is to act in a particular way it can also be a desire to satisfy needs. Iwueke (2010: 77)

PRODUCTIVITY: It is the ability to produce a result. The blending of efforts in other to actualize a desired goal or is the measure of how well  resources are use in an organisation to achieve a set result.

DECISION: It is a choice or judgment that you make after a period of decision or thought.

PARTICIPATION: It is a place where people come together with various ideas and form various backgrounds to achieve an aim. A team of people with one goal and objective.

EFFECTS: It is the way in which an event, action or person changes someone or something.

ATTITUDE: it is the manner of feeling and behaving

PERFORMANCE: It means to work in the paper or intending way. To carry out a particular activity well and with great skills.

 

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