EMPLOYEE’S PARTICIPATION IN DECISION MAKING AND ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF DUFIL PRIMA FOOD PLC, CHOBA, PORT HARCOURT)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Certain logic supports the opinion that an organization benefits from their managers and employees collaborating, and research has shown the close link between organizational and individual effectiveness (Irawanto, 2015). For many years, the relationship between job performance and participation has been an area of interest for business researchers. If employees are to understand the need for creativity and commit to changing their work behaviours in new and improved ways, they must be involved (Singh, 2009; Kingir & Mesci, 2010). Employee participation in decision-making creates a sense of belonging among workers and an agreeable environment in which both management and employees willingly contribute to healthy relations (Noah, 2008). Thus, workers’ participation in decision-making can be seen as a motivational tool for encouraging high organizational performance and positive attitude (Noah, 2008). Scepticism regarding the relevance and value of employee participation in decision-making to firm performance persists, and as such this study assesses whether employee participation in decision-making has a significant impact on organizational performance. A pointer to achieving the goal of ensuring the organization contributes favourably to the countries growth and development is that all stakeholders in the industry must exercise a deep sense of commitment to duty in service delivery. All businesses that engage in service delivery irrespective of technological advancement require a level of human contribution to effective achieve excellent service delivery. This emphasizes the need for a proper management style that incorporates employees in all the business endeavours in the service industry, as employees are the contact point to all customers which their attitude will not only leave a lasting impression but will also be a basis for customers repeat demand. This fact drives the need for employee’s participation in business decision making and their active participation in issues that relates to their welfare. Employee participation is a very wide term with different researchers from diverse fields of study (Lam et al., 2002). Participation simply gives the researchers the need to share their ideas, challenges or fear and express opinions on possible ways that will drive the sector forward. Employees’ participation in management has attracted quite a number of researches in recent times, though its development can be viewed slow but increased employees demand for job satisfaction and the need for recognition of employees relevant in the structure of an organisation, the concept has become a major topic for first line growth. The desire for economic and industrial freedom that is believed to be attained when political democracy is achieved is a prompter to the growth of employee’s participation in organisations (Rathnakar, 2012). A number of critics, groups and advocate of industrial democracy were of the view that since the people are free and made to choose the people that forms leadership over them in their country, it is also pertinent that workers of any organisation be given the free hand to take active and strategic role in decision making that affects the existence and growth of the organisation (Lunjew, 1994; Rathnakar, 2012). This believe is borne out of the perception that the organisation is likened to a system or a state, and there is need to bring democracy into the organisation as the world has moved away from the dictatorial or totalitarian style of state control. Sashkin (2015) feel that participation is not only effective, but that its use by management is an ethical imperative. Locke and Schweiger (2011) believe that worker participation is merely a managerial technique that can be used effectively in certain situations. Several scholars such as Adewumi, (2010), Fashoyin, (2015) and Imaga, (2013) suggested that worker participation in management decision making will reduce industrial conflict, raise workers’ productivity, ensure rapid grievance procedure and motivate workers. However, it must be noted that research on the adoption of human resource management practices by organizations in developing countries like Nigeria, is still very scanty. Nonetheless, growing HR research, particularly in the developed world, has pointed to the significant role that HR practices can play in enhancing the growth and survival of organizations. Factors affecting the existence of participation in decision making are the investigation’s main focus. Though participation in decision making has been researched in developed countries, generalizability of those findings across cultures remains an issue. Are the outcomes of these previous studies done in Western culture also relevant in Nigerian culture? Hofstede’s (2013) cultural study revealed that a Middle East country as Saudi Arabia scored high on masculinity, high on uncertainty avoidance, quite high on collectivism, and very high on power distance, as compared to other cultures. In considering Hofstede’s findings, specialists may wonder whether Saudi workers are culturally prepared to take on management practices such as participation in decision making, though this austere view of Saudi culture is somewhat fading. Hence, this investigation analyzes the link between employee participation in decision-making and firm performance within the context of Dufil Prima Food Plc, Rivers state.

1.2   STATEMENT OF THE PROBLEM

Employee participation shows that each employee is a different person, not just a component in a mechanism, and every employee is concerned in serving the business to get together its objective. Each employee contribution is asked for and appreciated by organization. Workers and management recognize that each employee is involved in running the business (Apostolou, 2013). Employee participation is a procedure to authorize workers to contribute in decision-making behaviour suitable to their rank in the association. Employee participation can therefore be seen as an umbrella title under which can be found a wide range of practices, potentially serving different interests. Any exploration of ‘employee participation’ has therefore to encompass terms as wide-ranging as industrial democracy, cooperatives, employee share schemes, employee involvement, human resource management (HRM) and high-commitment work practices, collective bargaining, employee empowerment, team working and partnership to capture the full picture of employee participation. However, this work will investigate the effect of employee participation in decision making on organizational performance.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine employee participation in decision making and organizational performance. Other general objectives of the study are:

1. To examine the extent of employee’s participation in decision making of Dufil Prima Food Plc
2. To examine the impact of employee participation in decision making on organizational performance
3. To find out ways/methods of introducing effective employee participation programme in an organization
4. To examine the impact of leadership styles on employee performance.
5. To examine the relationship between employee participation in decision making and organizational performance
6. To examine how direct participation in decision making influences organizational performance
7. To examine the challenges that is associated with employee participation in decision making of an organization

1.4   RESEARCH QUESTIONS

1. What is the extent of employee’s participation in decision making of Dufil Prima Food Plc?
2. What are the impacts of employee participation in decision making on organizational performance?
3. What are the ways/methods of introducing effective employee participation programme in an organization?
4. How does leadership style impact on employee performance?
5. What is the relationship between employee participation in decision making and organizational performance?
6. How does direct participation in decision making influences organizational performance?
7. What are the challenges associated with employee participation in an organization?

1.5 RESEARCH HYPOTHESES

Hypothesis one

HO: There is no significant effect of employee participation in decision making process of an organization on organizational performance

H1: There is a significant effect of employee participation in decision making process of an organization on organizational performance

Hypothesis Two

HO: There is no significant relationship between employee participation in decision making and organizational performance.

H1: There is a significant relationship between employee participation in decision making and organizational performance.

Hypothesis Three

HO: Direct participation in decision making does not influence organizational performance

H1: Direct participation in decision making significantly influences organizational performance

1.6   SIGNIFICANCE OF THE STUDY

This study will help management and administrators of corporate business organization as a guide in implementing an effective employee participation programme to encourage employee involvement in decision making. By doing so, employee will put in their intellectual contribution towards improved organizational performance. The findings of this research work will also serve as reference for academic endeavour to lecturers and students and also help the public who would want to know about some advantages and disadvantages (if any) of employee participation and its effect on organizational performance.

1.7    SCOPE OF THE STUDY 

The study is based on employee’s participation in decision making and organizational performance, a study of Dufil Prima Food Plc, Choba, Port Harcourt in Rivers state.

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1. OPERATIONAL DEFINITION OF TERMS

Organization: A social unit of people that is structured and managed to meet a need or to pursue collective goals

Participation: Joint consultation in decision making, goal setting, profit sharing, teamwork, and other such measures through which a firm attempts to achieve organization performance

Performance: The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfilment of an obligation, in a manner that releases the performer from all liabilities under the contract.

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 alterative 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 is also a way of doing the right thing.

Productivity: It is an organization ability to transform input into output at the lowest possible cost (Ewulum and Unamaka 2013). 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.