THE RELATIONSHIP BETWEEN EMPLOYEE PARTICIPATION IN DECISION MAKING AND WORK PERFORMANCE IN THE MANUFACTURING SECTOR (A CASE STUDY OF UNILEVER PLC LAGOS STATE)

ABSTRACT

The title of this study is to examine the relationship between employee participation in decision making and work performance in the manufacturing sector (a case study of Unilever Plc Lagos State). The specific objective of study is to include, to identify the extent employees participate in the study organization. To examine the impact of employees participation on organizational performance and to highlight some of the factor effecting workers participation in the decision making. Research questions were acquired and hypothesis formulated to help derive the study. The two major sources of data were used but the questionnaire is the most extensively used instrument. The study was essentially survey design. The population of the study was 240 and a sample size of 150 was derived using the Taro Yamane formula. The data collected were analyzed using tables and percentages while the hypotheses were tested using the chi-square statistical tool. The findings arrived at include, the relationship between employee’s participation in decision making lead to a sense of belonging and create cooperation and unity in the organizational productivity. Employees’ participation in decision making positively affect their morale and enhances productive efficiency in the organization. The level of education guarantees workers participation in decision making process. Based on these findings, the following recommendations were made the level of education gives rooms to workers participation and also create cooperation, unity, and increase their morale and efficiency in job performance. The organization should device or creates a more conductive environment where their employees can participate in some delicate decision to be made like conference, seminars, and workshops.

 

CHAPTER ONE

INTRODUCTION

1.1 Background OF the Study

The manufacturing sector in Nigeria has been a focal sub-sector; but little is probably known about the influence of its employee involvement in decision making on firms’ performance. The manufacturing sector in Nigeria has been a focal sub-sector; but little is probably known about the influence of its employee involvement in decision making on firms’ performance. The particular attention in manufacturing emanates from the conviction that the sector is a potential instrument of modernization, a creator of jobs, and a generator of positive spill-over effects (Tybout, 2000). Moreover, the growth in manufacturing output has been a key element in the successful transformation of most economies that have seen sustained rises in their per capital income (Soderbom and Teal, 2002). Focus should therefore be on manufacturing and those factors that may foster its growth.

A high degree of involvement (deep employee involvement in decision making) means that all categories of employees are involved in the planning process. Conversely, a low degree of involvement (shallow employee involvement in decision making) indicates a fairly exclusive planning process (Barringer & Bleudorn, 1999) which involves the top management only. A deep employee involvement in decision making allows the influence of the frontline employees in the planning process. These are the people who are closest to the customer and who can facilitate new product and service recognition, a central element in the entrepreneurial process (Li et al., 2006). This means that employee participation in the planning process surrounding the potential innovations may facilitate opportunity recognition throughout the organization (Kemelgor, 2002; Zivkovic et al., 2009).

Participative decision making is when employee are allowed to contribute their opinion in matters that relates to them and their work in the organization.

However, cases abound where managers took unilateral decision even in cases that concern the employees. This is because some managers seen their employees as being in capable of contributing positively to decision making and therefore should merely receive order and directive from them.

In modern management practices. This principles no longer popular. People have come to realize that there is need for adequate representation of employees in some management decision as it effects their welfare as well as their performance. Druoker (19990 supported this with the concept of management by objective (MBO) as defined by Odiame in Crurun and Unamakalia – MBO is a process whereby superiors and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in term of the results expected of him or her and use these measures as a guide for operating the unit and assessing the contribution of each of its members.

It is against this background that this study intends to investigate the relationship between employee participation in decision making and its impact on their productivity or performance in some selected private organization.

 

1.2 STATEMENT OF THE PROBLEM

Employees non participation in organizational decision making may lead to low performance in an organization.

Non participation in decision making demoralize employees.

Employees non participation result to conflict between management and employees and also lead to indifferent to the decision making reached by the organizational productivity.

its impact on their productivity or performance in some selected private organization.

 

1.2 STATEMENT OF THE PROBLEM

Employees non participation in organizational decision making may lead to low performance in an organization. Non participation in decision making demoralize employees. Employees non participation result to conflict between management and employees and also lead to indifferent to the decision making reached by the organizational productivity.

1.3 OBJECTIVE OF THE STUDY

The major objective of the study is to examine the relationship between employee participation in decision making and work performance in the manufacturing sector. However, the specific objectives include:

1. To assess the extent do employees participate in the study organization
2. To determine the employees participation in organizational decision making affect performance
3. To examine the factor affecting workers participation in decision making

 

1.4 RESEARCH QUESTION

1. To what extent do employees participate in the study organization?

 

2. How do employees participation in organizational decision making affect performance?

 

3. What are the factor affecting workers participation in decision making?

 

1.5 RESEARCH HYPOTHESES

Streamlined to the aforementioned objectives and research questions, the following null hypothesis have been formulated and shall be subjected to

suitable empirical test.

Null Hypothesis 1

Ho₁: The extent of worker involvement in the decision making process of their work-places is low.

Null Hypothesis 11

Ho₁: Worker participation in the decision making process co not pose any challenge in organization.

Null Hypothesis 111

Ho₁: Employee participation has no impact on job satisfaction.

Null Hypothesis 1v

Ho₁: Participation has no effect on employee performance.

 

Null Hypothesis v

Ho₁: Employee performance has no impact on organization growth

1.6 SIGNIFICANCE OF THE STUDY

The significance of the study specifies the benefit of the research, the beneficiaries and what, who and how they would benefit. The study will serve as literature for further studies especially for business administration and other related studies. It helps to get data collection which may lead to achieve a specific goals.

The study also intends to add to the body of knowledge by highlighting different decision making techniques which can improve performance in organization.

 

1.6 SCOPE OF THE STUDY

The scope of this study is the relationship between employee participation in decision making and work performance in the manufacturing sector using Unilever Plc Lagos State as the case study.

 

1.8 DEFINITION OF TERMS

The definition of some relevant term in this study will aid the understanding of the study. This is in accordance with the quote of a Greek philosophers sayings that the beginning of any decision or argument lies in the clarification or definition of the relevant term Aristotle In Iroegbu (2004)

 

Organization:

Is a deliberate arrangement of people accomplish some specific purpose. (Robbin and Coulter 2007).

 

Management:

Coordinating work activities so that they are completed efficiently and effectively with and through other people.

 

Employees:

Are organized person employed to work in an organization. (Davis 2001). An employees is someone hired by an employer under a contract of employment of performance work on a regular basis.

 

Participation:

Is the act of taking part in an activity or event. It also a style of managing in which the supervisor gives the direction but decision is made by consensus (Eke 2008) participation as a management style was adopted in 1961 by Rensis Likert of the University of Michigan.

 

Employees participation:

Is a special form of delegation which the subordinate gain greater control, greater freedom of choice with respect to bridging the communication gap between the management and the workers (Noah 2008) it also soliciting for the view of the employees in decision making process.

 

Decision making:

Is the process of selecting the alternative course of action from available alternative in order to achieve a given objective.

 

Organizational performance:

is the level of productivity on organization experience in the course of carrying out its functions and activities.

 

Effectiveness:

Is the attainment of predetermined goal. It also away of doing the right thing.

 

Productivity:

It is an organization ability to transform input into output at the lowest possible cost (Ewulum and Unamaka 2002). It is also the rate of good which a company or worker produces and the amount produced compared with time work and money is need to produce them. So, it is a measure of the work efficiency of an individual work unit or entire organization.

 

References

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Weiler, p. c (1993) “Governing the Workplace: Employee Representation in the Eyes of the law”. In Kaufnam, B.E and Kleiner, M.M eds. Employee Representative: Alternative And Future Directions: IRR- Research Association Series.

MacGregor, D (1960). The Human Sides of Enterprises. New York; Mergraw Hill

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