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THE RELATIONSHIP BETWEEN EMPLOYEE PARTICIPATION IN DECISION MAKING AND WORK PERFORMANCE IN THE MANUFACTURING SECTOR

ABSTRACT

This study examines the relationship between employee participation in decision making and work performance in the manufacturing sector in Imo State. Data were generated by means of questionnaires 100 manufacturing firms on employee participation in decision making and performance variables. Responses from the survey were statistically analyzed using chi-square. The results of the study indicate a statistically significant relationship between employee involvement in decision making and firms’ performance as well as reveal a significant difference between the performance of firms whose employee participate in decision making are deep and the performance of firms whose employee involvement in decision making are slow. The findings also reveal the involvement of participating firms in employee involvement in decision making. The implications of this study include the need for manufacturing firms to   demonstrate high level of commitment to employee participating in decision making for performance enhancement.

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).

1.2 STATEMENT OF THE PROBLEM

A modern forward-looking business does not keep its employees in the dark about vital decisions affecting them. It trusts them and involves them in decision making at all levels. “Command and control” is no longer an adequate model. A more open and joint framework will exploit the talents of all employees. The choice   of manufacturing sector was made because of its relevance and potential to Nigeria’s economic development.

1.3 OBJECTIVE OF THE STUDY

1.   Employees must be involved if they are to understand the need for creativity and if they are to be committed to changing their behaviour at work.

2.   Employee involvement in decision making serves to create a sense of belonging among the workers as well as a congenial environment in which both the management and the workers voluntarily contribute to healthy industrial relations.

3.   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.

1.4   SIGNIFICANCE OF THE STUDY

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. However, researchers may be doubtful about the value and relevance of     employee involvement in decision making to firm performance.

1.5 RESEARCH QUESTIONS

1.   There is a significant relationship between employee involvement in decision making and firms’ performance.

2.   There is not employee involvement in decision making has a significant impact on firms’ performance.

3.   There is a significant difference between the performance of firms whose employees’ involvement in decision making are (deep) high and the performance of firms whose employees’ involvement in decision making are (shallow) low.

1.6 RESEARCH   HYPOTHESIS

Ho: There is no significant relationship between employee involvement in decision making and work performance.

Hi:    There is significant relationship between employee involvement in decision making and work performance.

Ho: Employee involvement in decision making has no significant impact on work performance.

Hi: Employee participating in decision making has significant impact on work performance.

1.7 SCOPE OF THE STUDY

Companies included in the sample were drawn from manufacturing firms in Imo State. Imo State was the focus because it is undoubtedly the commercial nerve-centre of Nigeria, with the largest concentration of industries.

1.8 LIMITATION OF THE STUDY

In preparing this thesis the research has been handicapped by time constraint. Though with the available time some of the workers not contracted were not up to date with statistical records which would have been useful in the analysis of the colleted data. Finally inadequate research materials and also financial constraints also hampered the condition of proper research work on the cause of producing this thesis.

DEFINITION OF TERMS

Participation: Participation is considered as an infringement to management prerogative.

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