Published on International Journal of Economics & Business
Publication Date: April, 2019
Alhaji Umar Lawal Aliyu
LIGS University Hawaii, USA
Journal Full Text PDF: Effect of Employee Participation in Decision Making in An Organization Performance.
The thrust of this study is to examine the relationship between employee’s participation in decision making on organizational performance. An employee is also referred to as worker. An employee is an individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties. Therefore, an employee is hired for a specific job or to provide labour and who works in the service of someone else referred to as the employer. On the other hand, an organization or organisation is an entity comprising multiple people, such as an institution or an association that has a particular purpose. A pilot study requires a range of few respondents (10-30), it was used by picking respondents at random, and the data collected were analysed using tables and percentages. The research work has found out that involving employee in decision-making is very vital and important in achieving the highest peak in performance of an organisation. In addition, Employees’ participation in decision making positively affect their morale and enhances productive efficiency in the organization. Employee participation in decision making in an organization influence them positively by making them give in their very best to growth and development of the organisation and Employee’s non-participation in decision making in an organisation can result to conflict between management and employees and lead to indifferent to the decision-making reached by the organizational productivity.
Keywords: Decision Making, Employee, Employer, Management, Organisation, Performance, Productivity.
Employee participation is the process whereby employees are involved in decision making processes, rather than simply acting on orders. Employee involvement is a process for empowering employees to participate in managerial decision-making and improvement activities appropriate to their levels in the organization. Participation of employee describes the involvement of employee in decision making which is concerned with shared decision making in the work situation [Mitchell, 1973]. According to [Noah, 2008] it is a special form of delegation in which the subordinate gain greater control, freedom of choice with respect to bridging the communication gap between the management and workers.
Employee’s non-participation in organizational decision-making may lead to low performance in an organization and can result to conflict between management and employees and lead to indifferent to the decision-making reached by the organizational productivity. Business owners often fret about the best way to increase employee motivation. Some might wonder, however, why simply providing a paycheck is not enough. Looking closely at what causes a loss of motivation, and recognition of the business’ dependence on employees, reveals that it is fundamental for employees to bring their enthusiasm to the workplace to increase the company’s productivity by involving employee in decision making.
There is no two ways that employee participation is very vital and important because employee participation promote organisational peace in the concern, satisfy the desire of workers for self- expression and raise productivity, production and efficiency of workers. Employee participation leads to efficiency and effectiveness, high performing and effectiveness in an organization, which inevitably causes productivity in an organisation. Thus, there are too many evidences that show firm’s performance increase with the increase in employee participation [Arthur, 1994; Daft & Lewin, 1993; Denninson & Mishra, 1995.
2. LITERATURE REVIEW
2.1 Theoretical Framework
Participative decision-making (PDM) is the extent to which employers allow or encourage employees to share or participate in organizational decision-making. “Employee Participation in decision-making process gives each employee the opportunity to voice their opinions, and to share their knowledge with others; while this improves the relationship between manager and employee, it also encourages a strong sense of teamwork among workers.”
Organisations all over the world irrespective of their policies have been faced with designing different types of ways and methods to achieve optimum organisational performance level in order to achieve overall organizational performance or goals. Organizations are also required to manage performance of its employees and functions by setting goals and achieving those (Good et al., 2004). The focus of management has been to establish the positive or otherwise negative effects of management practices on performance and so participatory decision-making remains a central theme in business, policy and practice research.
People like “Somech” feel involving employees in decision-making making is the best thing ever in achieving organizational performance or goals while some researchers think involving employees in decision making is a risk on the organization. Other researchers feel that involving employees will be involving so many people in decision making will make it rowdy, time consuming, inefficient, indecisiveness and incompetence. Most researches have however shown that employee involvement in decision-making will reduce staff absenteeism, increase organizational commitment, improved performance, reduced turnover, increase greater job satisfaction, employees feel as being part of the organization and this raise their degree of worth importance within the organization.
2.2 Concept Of Employee Participation
Participation is the act of one taking part in something that affects him/her ib one way or the other. Thus, Employee participation is the process whereby employees are involved in decision-making processes. Employee participation in decision-making varies from one organisation to another because it can either is high level, moderate level or low level. According to the Employee Involvement Model, four contingencies may affect the level of employee involvement as follows:
Decision structure: This is into Programmed (which are less likely to need employee involvement because the solutions have already been experienced from the past incident) and non-programmed (which needs more employee involvement). In other words, employee involvement depends on the complexity of the problem.
Risk of conflict: There are two types of conflict undermining the benefits of employee involvement. Firstly, if employee goals and norms conflict with the organization’s goals, only a low level of employee involvement is advisable. Secondly, the degree of involvement depends on whether employees will reach agreement on preferred solutions; if conflict is likely, high involvement (employees make decision alone) would be difficult to achieve.
Source of decision knowledge: Staff should be involved in some level of decision making especially when the leaders lack sufficient since employees are always closer to customers and production activities, so they often know how the customer feel about the company and what is best.
Decision commitment: Participation tends to improve employee commitment because Employees are unlikely to accept the decision made without their involvement and thus, at some level Employee participation is usually necessary.
2.3 Characteristics Of Employee Involvement in Decision Making
It encourages people to accept responsibility for an activity, as they feel self-involved in the group.
It motivates the employees to contribute their maximum and provides an opportunity to workers to direct their initiative and creativity towards the objectives of the group.
Participation implies mental and emotional involvement rather than muscular activity.
Along these lines, we can infer that participation gives a chance to each individual from the organisation to contribute his/her cerebrum and inventiveness just as his physical endeavours for the improvement of authoritative viability and in the meantime upgrading his very own financial welfare. It likewise creates in them a feeling of loyalty, devotion and inclusion or involvement.
2.4 Objective Of Employee Involvement in Decision Making
Nowadays, companies, business organisations etc. are shifting towards maximisation of economic welfare rather than the maximisation of profits. It is in this regard that the fundamental thought of labour participation organisations irrespective of their economic and political policies are getting the fullest co-activity of workers. The achievement of such cooperation relies upon the presence of agreeable or cordial industrial relations. It is not a matter of a man being accorded the privilege of stating a complaint or offering a suggestion, but of having a recognised responsibility for doing so because he is an employee and, therefore, a joint partner in the enterprise in which he is investing not money but his life. A close rapport is established between the employer and employees that motivates them to work together productively and co-operatively. Below are the objectives of workers’ participation in an organisation:
Encourage social education, which promotes solidarity in the working class?
Evoke the fullest collaboration of the employees.
Have better industrial relations and establish harmonious relations between the workers and management.
Improve morale of workers.
Promote industrial peace in the concern.
Raises productivity, production and efficiency of workers.
Satisfy the desire of workers for self- expression.
Briefly, Participation aims at increasing production and productivity to strengthen the organisations productivity and to serve the employers and employees in a better way.
2.5 Advantages And Disadvantages Of Employee Participation
The advantages of employee participation in an organization are:
It increases employee’s morale and enhances the productivity [Chang& Lorenzi, 1983]
It provide employees the opportunity to use their intellectual which will lead to better decisions for the organization [Williamson, 2008]
Employee participation contributes to trust and sense of control [Chang& Lorenzi, 1983]
Because of employee participation, resources required to monitor employee can be minimized thus reduced cost [Arthur, 1994; Spreitzes & Mishra, 1999]
Employee participation in an organization maximizes the viewpoints and gives diversity of perspectives [Kemelgor, 2002].
3. DATA ANALYSIS
3.1 Interpretation Of Data
This section attempt to provide clear analysis and interpretation of all data collected through questionnaire given to the employees of Lawal Aliyu Academy Zaria. The responses to the questionnaire by the respondent are presented in the form of Tables for easy comprehension, and analysis computed using simple percentage, which form the basis of analysis and conclusion drawn there from.
Table 3.1.1 Does Employee participation in decision-making raises productivity, production and efficiency of workers
Decision No. of respondents Percentage (%)
Yes 30 100%
No – 0%
Total 30 100%
Source: Questionnaire to Lawal Aliyu Academy Staff April 2019
Table 3.1.2: Does Employee participation in decision making increase in workers performance
Decision No. of respondents Percentage (%)
Yes 30 100%
No – 0%
Total 30 100%
Source: Questionnaire to Lawal Aliyu Academy Staff April 2019
3.2 Implications Of Findings
A pilot study with few respondents (30 people) was used by picking respondents at random, and the data collected were analysed using above tables and percentages The research work observed that employee participation in decision-making increases workers performance, raises productivity, production and efficiency of workers.
The thesis has shown that participation in decision-making can increase workers performance, raises productivity, production and efficiency of the employee of any organization. In addition, participation in the decision-making process gives each employee the opportunity to voice their opinions, and to share their knowledge with others. While this improves the relationship between manager and employee, it also encourages a strong sense of teamwork among workers.
The researcher therefore recommends that employees should be involved in decision-making of organisations because raises the morale of workers by making them feel they are part and parcel of the organisation, increase workers performance, raises productivity, production and efficiency of the employee of any organization.
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