IMPACT OF EMPLOYEE PARTICIPATION IN DECISION MAKING ON ORGANIZATION PRODUCTIVITY IN NIGERIAN BOTTLING PLC, LAGOS
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CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Employee participation is creating an environment in which people have an impact on decision and actions that affect their jobs. Employee participation is not the goal nor is it a tool, as practiced in Nigerian organizations. Rather, employee participation is a management and leadership philosophy about how people are most enabled to contribute to continuous improvement and the ongoing success of the organization. Moving decision making power downward in organization is at the core of what employee participation is all about (Imaga, 2013),
Organizations are very curious and always in search of competitive policies to gear up their performance. Global trends changes organizational practices from traditional to employee’s competitive policies. Organizations strengthen their base and competencies by adopting policies through which they empower their employees by delegating them authority. The most important feature in the achievement or collapse of any institute is the authority of its employees, and how well that authority is focused towards achieving company objectives. Presently, industrialized organization follows the objective of a paperless environment, with plan and theory from a workstation terminal through information links to a workstation aided- mechanized terminal, which in turn force a numerically controlled machine (Apostolou, 2000).
Organizations that can tap the strengths of their people will be stronger and more aggressive than those that cannot. Business that regards people as automatons or mere cogs in a wheel will never realize their full potential. Organizational environments characterized as “highly involved” strongly encourage employee involvement and create a sense of ownership and responsibility. They rely on informal, voluntary and implied control systems, rather than formal, explicit, bureaucratic control systems. Out of this sense of ownership grows a greater commitment to the organization and an increased capacity for independence. Receiving input from business associate boost the quality of the decisions and improves their implementation (Colvin, (2003).
According to Ho and Wu (2006), decision-making is however one of the most important activities of management. It has been the pre-occupation of all management of multifarious organization to multi-national corporations. Managers often consider decision making to be the heart of their job in that they must always choose what is done, who will do it, when, where and most of the time how it will be done. Traditionally, managers influence the ordinary employers and specifically their immediate subordinate in the organization. This has resulted in managersŸ unnatural decision even in areas affecting their subordinates.
Employee participation shows that each worker is a different person, not just a component in a mechanism, and every worker is concerned in serving the business to get together its objective. Every worker contribution is asked for and appreciated by organization. Workers and management recognize that each employee is involved in running the business (Apostolou, 2000).
Employee participation is a procedure to authorize workers to contribute in decision-making behavior suitable to their rank in the association. As Theory Y primary transport to boss the thought of a participative organization technique, worker participation has taken numerous form, counting the work design method and particular behavior such as quality of work life (QWL) (Apostolou, 2000).
Furthermore, the participation of employees in decision-making in teams, in making system with greater labor-management, and trust resulting from these systems may also create a result in which decisions are seen as having greater legality to workers. This legitimization effect would also lead to a prediction of a decrease in complaint under high production work systems, apart from any effect on the fundamental level of disagreement in the place of work (Colvin, 2003).
1.2 Statement of the Problem
There has been a lot of controversy as to whether an employee should participate in management decision making or not. Some writers argued that employees should contribute in making decision more especially where it affects them or their jobs. It is expected that such participation will serve as training and testing ground for future members of upper management. In Nigeria, experts that refuted the above assertion see the arrangement as a symptom of mal-organization. They maintained that qualified, reasonable, honest and company oriented individuals are not available at these lower organizational levels.
The issue of whether employee participation in decision making exists in the Nigerian organizational set-up is very controversial. Some companies in Nigeria practice participative decision making and the government has in the past encouraged participative decision making through legislation.
On the contrary, some management writers in Nigeria are of the opinion that it does not exist and where it does it is not real. Their reason is that the necessary prerequisite conditions to encourage participation in Nigeria are not available.
The problem mainly lies on the fact that participation though obtained has not been clearly understood as well as its benefits. Some of the managers feel that the decision making process is their sole prerogative and as such should be protected. Again top management likes to remain aloof from its employee as to build an all important air around themselves. In the light of the above, this study therefore is set to determine the extent of practice of participative decision making in government Press and few other firms and its influence on productivity as well as ascertaining the benefits and problems arising from such practice.
1.3 Aims and Objectives of the study
This research work examines the impact of employee participation in decision making on organization productivity in Nigerian Bottling Plc, Lagos and the objectives of this study include:
- To examine the effect employee participation in decision making on organization productivity.
- To measure the decision making of employee on organization’s turnover.
- To review the strategic steps taken by employee in enhancing organizational performance
- To examine the challenges encountered by employee participation in decision making of an organization.
1.4 Relevant Research Questions
The following research questions were developed for the study:
- How does employee participation in decision making affect organization productivity?
- How does decision making of employee affect organization’s turnover?
- What are the strategic steps taken by employee in enhancing organizational performance?
- What are the challenges encountered by employee participation in decision making of an organization?
1.5 Relevant Research Hypotheses
The following hypotheses were developed for the study:
- Ho: There is no significant relationship between employee participation in decision making and organizational productivity.
H1: There is significant relationship between employee participation in decision making and organizational productivity.
- Ho: The decision making of employee does not have any effect on organization’s turnover.
H1: The decisions making of employee have effect on organization’s turnover.
1.6 Significance of the Study
It is expected that the study will inform the management of the Nigerian Bottling plc, Lagos that to increase productivity and to ensure harmony between management and the workers, there is need for employees participation in decision making in the organization as it is a good motivation factor.
It will also help develop and maintain a quality work life, which will provide an opportunity for employees’ job satisfaction and self actualization. It will also aid management of Nigerian Bottling Plc to introduce modern schemes for good relationship with their workers, to enable them meet the challenges of change in the future.
When performance standards are clearly articulated by management, employees know what is expected of them, what their role as a part of a group and organization is, what is considered unacceptable performance, and how organizational standards should be achieve. This research work is believed to be useful and relevant to the entire society, as it will help organizations and other sectors of the economy in knowing and appreciating the roles performed by employee participation in decision making plus how it affect organization productivity.
To this end it will therefore serve as a benchmark for researchers to further evaluate the effect of employee participation in decision making – employee relationship, and how it ultimately impacts the performances and growth of organizations in Nigeria.
1.7 Scope of the Study
The work seeks to examine impact of employee participation in decision making on organization productivity in Nigerian Bottling Plc, Lagos.
1.8 Definition of Terms
Decision Making: The selection from among alternative a course of action.
Management: Management can be defined as an art of science of achieving the objective of a business in the most efficient way.
Productivity: A measure of how well resources are brought together in organization and utilized for accomplishing a set of result.
Employees Participation: This is creating an environment in which people have an impact on decisions and actions that affect their jobs in the organization.
Turnover: Turnover is the rate at which employees leave a workforce and are replaced.
Organization: Organization is an organized group of people with a particular purpose, such as a business or government department.
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