PROPOSAL ON EFFECT OF EMPLOYEE PARTICIPATION IN DECISION MAKING AND ITS IMPACT ON PRODUCTIVITY (A STUDY OF DANGOTE GROUP OF COMPANY, APAPA, LAGOS)

PROPOSAL ON EFFECT OF EMPLOYEE PARTICIPATION IN DECISION MAKING AND ITS IMPACT ON PRODUCTIVITY (A STUDY OF DANGOTE GROUP OF COMPANY, APAPA, LAGOS)

 INTRODUCTION

 

1.1       Background to the Study

Employee participation in decision making has been recognized as a managerial tool for improving organizational performance by striving for the shared goals of employees and managers. This is actualized by way of allowing workers’ input in developing the mission statement, establishing policies and procedures, pay determination, promotion, and determining perks. 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, 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 (Meyer & Hescovitch, 2001).

Employee Participation is generally defined as a process in which influence is shared among individuals who are otherwise hierarchically unequal. Employee participation represents the combination of task-related practices, which aim to maximize employees’ sense of involvement in their work, and human resource management practices that aim to maximize employees’ commitment to the wider organization (Miller, 2001). Participatory management practice balances the involvement of managers and their subordinates in information processing, decision making and problem solving endeavours.

There has been significant attention from researchers that focus on the manner in which structure affects employee attitudes. Rayton (2006) in his study, stated that in current dynamic working environment and severe competition, organizations are required to adopt techniques which are flexible, adaptive and competitive due to the competitive pressures and rapidly changing market conditions. Moreover organizations are realizing that their employees are the most important asset and organization’s future depends on more involvement of employees in generating new ideas. The involvement of employees can help in many ways to the organizations looking for creativity, changes in behaviors at work, and in workplace decision making. In order to increase the workers commitment and humanise the workplace with the intention of improving work performance and good citizenship behaviour, managers need to permit a high degree of employee involvement (Suliman & Iles, 2000). Thus, the involvement of workers in decision making is considered as a tool for inducing motivation in the workers leading to positive work attitude and high productivity.

Moving decision making power downward in organizations is at the core of what employee participation is all about. Teams are a potentially powerful way to move power downward. The employee participation has also been implemented in organizations in order to motivate the employees by involving them with the management for taking serious decisions about the organization. The aim of decision making is to channel human behaviour towards a future goal. 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. The basic concept involves any power-sharing arrangement in which workplace influence is shared among individuals who are otherwise hierarchical unequals. Such power-sharing arrangements may entail various employee involvement schemes resulting in co-determination of working conditions, problem solving and decision making.

Suki & Suki (2011) are of the view that participative decision making can be possible in an organization. Among the indigenous employers, particularly the small and medium sized organization, their attitude to workers is paternalistic and authoritarians. Their activities are often shrouded on secrecy. They are suspicious of the workers and therefore cannot afford to share information and decision with them. 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

 

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 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 them. But the big question is, are skilled individuals really available? In the light of the above, this study therefore is set to examine the effect of employee participation in decision making on productivity in Dangote Group of Company.

1.3       Purpose of the Study

The main objective of this study is to examine the effect of employee participation in decision making and its impact on productivity. Other specific objectives include to:

1. Determine whether employee participate in decision making to enhance productivity of Dangote Group of Company.
2. Ascertain whether perception of employees towards participative management policy will enhance productivity in Dangote Group of Company.

• Determine if employee opinion are been utilized for decision making in Dangote Group of Company.

1. Determine the problems encountered by management in the practice of participative decision of employee in Dangote Group of Company.

1.4       Research Questions

The following research questions were raised to guide the study:

1. Does employee participate in decision making to enhance productivity of Dangote Group of Company?
2. Does perception of employees towards participative management policy enhance productivity in Dangote Group of Company?

• Does employee opinion been utilized for decision making in Dangote Group of Company?

1. What are the problems encountered by management in the practice of participative decision of employee in Dangote Group of Company?

 

1.5       Relevant Hypothesis

The following hypotheses will guide the study:

H₀:       Employee participation in decision making will not significantly influence productivity in Dangote Group of Company.

H₁:       Employee participation in decision making will significantly influence productivity in Dangote Group of Company.

H₀:       Perception of employees towards participative management policy will not significantly enhance productivity in Dangote Group of Company.

H₂:       Perception of employees towards participative management policy will significantly enhance productivity in Dangote Group of Company.

1.6      Significance of the Study

It is expected that the study will inform the management of the Dangote Group of Company 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 Dangote Group of Company to introduce modern schemes for good relationship with their workers; to enable them meets the challenges of change in the future.

Finally, this work is also beneficial to the organizations in general and also important to government, academic potential and future researchers on the issue of employees participation in decision making.

1.7       Scope and Limitation of the Study

The study examines the effect of employee participation in decision making and its impact on productivity. The study will be restricted to Dangote Group of Company, Apapa, Lagos.

Some limitations that will be encountered in the process of the study include:

1. Financial constraint: In running around to gather material for this study considering the economic meltdown, money and other resources where involved delayed the completion of this work.
2. Time: The researcher will be constraint by time in running round for the completion of this project.

• Attitude of respondents: The research might find it difficult to source required information from the staff of Dangote Group of Company; this will also delay the completion of this work.

 

BRIEF OUTLINE OF LITERATURE TO BE REVIEWED

The literature review presents the framework of the study in addition to a review of empirical studies on effect of employee participation in decision making and its impact on productivity. The following will be taken into consideration during the course of the study:

• Theoretical Framework
• Concept of Employee Participation
• Employee Participation in Decision Making
• Factors that Influence Participation
• Forms of Employee Participation
• Factors that Influence Participation
• Historical Background of Dangote Group of Company
• Forms of Employee Participation
• Human Capital Theory
• Efficiency Wage Theories
• Conflict Theories
• Empirical Studies

 

RESEARCH METHODOLOGY

• Research Design:

The research design that will be use for this study is the survey design. The reason why this design was suggested is because the researcher would make use of the primary data obtained through the questionnaire.

• Characteristics of Study Population: The study will focus on effect of employee participation in decision making and its impact on productivity with a view to understudy the people using Dangote Groups of Company in Apapa Lagos, Nigeria. The population involves the people living in the suburb of Apapa, Lagos.
• Sampling Techniques: The sampling techniques that will be use for this research work is the simple random sampling, applied using the sample frame. The basis for the selection of the sample is hinged on the fact that the whole population cannot be understudied, and that it will contain a fair representation of the population.
• Data collection instrument: The basic instrument for the data collection will be the conventional instrument that is frequently employed for statistical analyses and measurement in most studies which is questionnaire.
• Primary Data: Primary data will be collected by administering the questionnaire to the people living in Apapa, Lagos, Nigeria..
• Data presentation: The data which is collected will be represented through tables, using simple percentage for analyzes and interpreting of thee questionnaire.
• Data Analysis: the study will use simple percentage for analyzes and interpreting of the data while Chi-square will be use to test the hypotheses of the research study