DECISION MAKING AND ORGANIZATIONAL PERFORMANCE (A STUDY OF PABOD BREWERIES IN RIVERS STATE)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Decision  making  by  organizational  managers  in  a  global  market  is  strategic  for  organizational survival  and  sustainability. It is as an integral part of management and one of the determining characteristics of leadership (Dervishi & Kadriu, 2014). In today’s business environment, few managers make decisions on the basis of well-deliberated calculations, no matter if the decision situation is of private character or in a job situation. People also neglect the normative rules when making risky decisions, and that they often make decisions by intuition or on “a hunch” that seems correct (Riabacke, 2006). This however does not mean that a good decision guarantees a good outcome in a global market. Decision making is always central to any organisation.  Numerous  scholars  in  the  area  of  management  agree  that  decision  making  is  one  of  the  most  pivotal  elements  in  the  administration  of  any  organizations  (Alqarni,  2003).

In the same vein, Jones (2005) advocated that decision and its process are   fundamental to all leadership and management processes. In the field of management, Drucker (with Maciariello, 2008) has placed decision making   as the highest skill to be understood and acquired by managers.

Organizational performance as a construct suffer from, problems of conceptual clarity in a number of areas. The first area is the definition of the construct. The term performance is often used indiscriminately to descried everything from effectively and effectiveness to improvement. An adequate definition or in this case, many similar yet different definitions practitioners use the term to describe a range of measurement including impute efficiency, output efficiency and earn transactional deficiency (Stanncck, 1996).

Performance has to do with accomplishment standard of accuracy, completeness, cost and speed. Performance is seemed to be the fulfillment of an obligation in a manner that release the performer from all liabilities under the contract. Organizational performance therefore is a measure of how well of achieve appropriate objectives. This means that organization must be properly, evaluated in term of their productivity, skills taken decision and total commitment to their job so as to enable the organization to achieved expected goal (s).

1.2 Statement of Problem

The issue of whether decision making exists in the Nigerian industrial 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.

However, research into leadership style has exposed employee’s desire for involvement in decision making in their various organizations. Employees are at the same time important elements of the accomplishment of the organizational goals, and thus organizational survival. The reason basically rests on the fact that employees are operators and are in better position to know the problems they encounter in doing a particular task and how best to solve them.

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 Objective of the Study

The main objective of the study is to examine decision making and organizational performance. Specifically, the researcher intends to;

1.       To examine the effect of relevant Information on organizational performance.

2.       Ascertain the level of Identify alternatives on organizational performance.

3.       To determine decision making and organizational performance.

1.4 Research Question

Based on the objectives of the study, the following research questions were postulated to guide the study.

1.       To what extent does relevant information influence organizational performance?

2.       To what extent does identify alternatives enhance organizational performance.

3.       To determine decision making and organizational performance?

1.5 Significance of the Study

This study is designed to provide information to the populace on how Government Press and other few selected firms have fair in their practice of participative decision making and its contributions to productivity, thereby enhancing organizational efficiency.

It is expected that this study will be beneficial to the management by giving enough insight into the benefits of employee participation in decision making, make clear to managers what participative management stands for hence, reducing the fear often harbored by these managers.

Workers, students of business Administration and the society at large are equally the potential beneficiaries of this study.

It is equally hope that the study would provide a basis on which further research could be carried out.

1.6 Scope of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves on investigation to ascertain the relationship between decision making and organizational performance in Rivers State. The dependent variable is organizational performance in Rivers State, measures by productivity, efficiency and effectiveness. While independent variable is decision making measure by relevant information and identify alternative.

Geographical Scope: This study is delimited in Rivers State Metropolis with special reference to Pabod breweries .

Unit of Analysis: The unit of analysis in this research involves the individuals at the time of the study. The scope of this study is to ascertain the relationship decision making and organizational performance in Rivers State.

1.7 Limitation of the Study

The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study.

In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study. Lastly, poor measurement instrument.

1.8 Definition of Terms

Employee/Worker

For the purpose of this study a worker is taken to mean any person who has undertaken to place his gainful activity in return for a remuneration, under the direction of another person who may be an individual, a private or public company or a corporation, who is styled the employer.

Productivity

The output per unit of a factor of production is called the “productivity” of that factor Imaga (1996).

Decision Making

This could be taken to mean an art considering and making a judgment concerning a particular issue or issues.