EMPLOYEES PARTICIPATION IN DECISION MAKING AND ORGANIZATIONAL PRODUCTIVITY
(A CASE STUDY OF FIRST BANK OF NIGERIA PLC, ENUGU MAIN BRANCH, ENUGU STATE)
This research work is on “Employees participation in decision making in organizations’ a case study of First Bank of Nigeria Plc, Enugu main branch. Employees irrespective of the enormous role played in implementing organization polices are not often carried along in the decision making process. The research is therefore conducted in order to determine how employees can take active part in decision making. In this research work, primary and secondary data were used, related literature were also extensively reviewed. The population for the study was 442 selected from the staff of the bank. The researchers used Taro Yamani statistical formula to reduce the figure to 210. The research find out that engaged union member in decision making. Also, that employee’s participation in decision making enhances staff morale and improve productivity and performance among others, it recommended that, management should share relevant information to the employees in order to keep them abreast of the organizational activities or decisions, also unity among staff and unions should be promoted in the organization and finally, employees training and development schemes should be encouraged in order to enable the employees to adopt and adapts to current trends in the society and the organization.
TABLE OF CONTENTS
Title page - - - - - - - i
Certification - - - - - - - ii
Dedication - - - - - - iii
Acknowledgment - - - - - - iv
Table of contents - - - - - - v
Abstract - - - - - - - - vi
1.0 Introduction - - - - - - 1
1.1 Background and need for the study - - 1
1.2 statement of the problem - - - - 6
1.3 Objectives/purpose of the study - - 9
1.4 Theoretical foundation of the study - - 10
1.5 Research questions - - - - - 13
1.6 Significance of the study - - - - 13
1.7 Scope of the study - - - - - 16
1.8 Limitations of the study - - - 17
1.9 Definition of terms and acronyms - - 19
References - - - - - - - 21
2.1 The concept of employee’s participation - 25
2.2 Factors that influence participation - - 31
2.3 Forms of Employee participation - - 34
2.4 Different needs for participation - - 40
2.5 constraints to employee’s participation - 42
2.6 Argument for participation - - - 44
2.7 Argument Against employee’s participation - 45
2.8 The concept of productivity - - - 47
2.9 The implications of employees participation on productivity - - - - - - - 49
Reference -- - - - - - - 54
3.1 Research Design and methodology - - 58
3.2Sources of Data collection - - - - 59
3.2.1 Primary data - - - - - - 59
3.2.2 Secondary data - - - - - 59
3.3 Location of study - - - - - 60
3.4 Population study - - - - - 60
3.5 Sample size and sampling technology - 63
3.6 Instrumentation - - - - - - 67
3.7 Validity of instrument - - - - 67
3.8 Reliability of instrument - - - - 69
3.9 method of data collection - - - - 70
3.10 Instrument distribution and return rate- 71
References - - - - - - - 73
4.1 Presentations, Analysis and interpretation of Data - - - - - - - - - 74
5.1 Findings, recommendation and conclusion - - - - - - - - - - 84
5.2 Summary of finding - - - - - 86
5.3 Recommendation and conclusion - 89
Bibliography - - - - - 92
Appendix - - - - - - - 101
Questionnaires - - - - - 104
1.1 BACKGROUND AND NEED FOR THE STUDY
Decision making before now used to be exclusive undertaking of management. But with organizational reforms and changes going on in organizations, decision making is becoming more democratic. Command and control according to Henritt (2002) is no longer an adequate model in management, therefore a more open and collaborative frame-work is needed to exploit the talents of all employees. According to (Noah,2008). Employee participation 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. It refers to the degree of employee involvement in organization’s strategic planning activities. A company can have deep or shallow employee participations in decisions making, (Barringer and Bleudorn, 1999). The employee participation in the planning process leads to potential innovation, which may facilitates opportunity and recognition in the organization. (Zikovic et al, 2009). Managers provide opportunities for participation of subordinates in decision making on the basis of their merits as it has been proved by researchers to have improved organizational performance.
More so, there are too many evidences that shows organizational performance increase with the increase in employees participation, (Arthur 1994: Draft and Lewin, 1993) productivity therefore is the performance measure encompassing both efficiency and effectiveness, high performing and effective organization posses a culture of encouraging employee participation. Also employees are more willing to get involved in decision making process like goal setting, problem solving activities which results in higher performance (Slocum and woodman, 1998). Encouraged more modern participative style of management raise employee productivity and satisfaction even with Low compensation rates (Madison, 2009). Job satisfaction increases productivity through high quality motivation and through increasing working capabilities at the time of implementations, (miller and manage 1986). There are evidences that participative working environment has more substantial effects on workers’ productivity.
Furthermore, every organization seeks to improve and increase its’ performance level by providing opportunities to its worker (Weiss et al, 1999). Organizations must perform at individual level to improve the performance of the whole organization. All subdivisions of the organization must perform well to achieve overall performance level, (Ward,2007). Organizations in all the world have designed different processes to improve performance level from functional to employees and till organizational level to perk up overall organizational performance. Organizations are also required to manage performance of its employees and functions by setting goals and achieving then (Good et al, 2004).
According to Dess and Robinson (2009), organizational performance can be entranced by improving employee participation and management must have certain tools to improve employee participation in that sector. Wheelmen and Hunger (1998), says that level of performance is based on objectives and goals set by an organization. For every company working in the market, the main goal is to earn profit and reduce expenses. According to (Lee et al, 2004), Level of progress and participation is different in every organization, many organizations delegate authority and power to their employees and also due to that, authority and organizational performance also increase.
To Ho, et al, (2006), organizations require different analysis to measure their profitability and this shows that organizations’ profitability can be increased when performance level of an enterprise also increases. With these illustrations in mind, it is therefore in the backdrop or premises that the researchers set out to study and examine the employee’s participation in decision making and organization’s productivity using First Bank of Nigeria Plc, Enugu main branch as a case of study.
1.2 STATEMENT OF THE PROBLEM
It is a modem trend in management that employees participate in decision making. This decision making style came about because the task, the environment and the people have changed, Enisplus, 2016). They contend that competitive advantage is the result of employee participation in decision making.
However, there are some impediments to actualizing a robust employee decision making participation, Enusplus (2016) observe that qualified, reasonable, honest, and company oriented individuals are not available especially at lower organizational level. When they are available, Levine and Tyson as quoted in Ojokuku & Sajujigbe (2014) believe that workers advise and suggestions no matter how good, the management retains the right to make final decisions. This is because it is feared in the words of Ogbonna (2012) that workers are not competent and as a result will not contribute meaningfully in decisions of the organization.
Another major problem stems from the fact that some organizations are deceitful, in that sense, they never intended to use the opinions of their employees. In that light, Tannaem Baum and Schimidt (1980) submitted that problems may occur when a manager uses a democratic façade to conceal the fact that he has already made a decision which he hopes the group will accept as its own. In this perspective, the desire for employee participation by the management is not real or genuine. This is further buttressed by Arnstein in wikipedia (2016) that there is a critical difference between going through the empty ritual of participation and having the real power needed to affect the outcome of the process. This difference is brilliantly capsulated in a poster which highlights the fundamental point that participation without re-distribution of power is an empty and frustrating process for the powerless. It allows the power holders to claim that all sides were considered, but makes it possible for only some of those sides to benefit.
Other problems also emerge. There are social pressures to confirm to groups domination even when one has different idea. Again with ideas coming from many people, time can be an issue (Wikipedia, 2016). According to Debruin et al (2007), possible negative outcomes of participatory decision making (PDM) are high costs, inefficiency, indecisiveness and incompetence.
In the light of the above analysis, this study is set to determine the extent of staff participation on decision making in First Bank of Nigeria Plc, Enugu and its implications on productivity.
1.3 OBJECTIVES OF THE STUDY
The general objective of this study is to examine the implications of employee participation in decision making and organizational productivity with the followings as the specific objectives.
(a) To find out how employees can participate in decision making in First Bank of Nigeria Plc, Enugu main branch.
(b) To evaluate the implications of employees participation in decision making on workers’ productivity/performance in First Bank of Nigeria plc, Enugu main branch.
(c) To ascertain the challenges encountered by employees in the course of participating in decision making in First Bank Plc, Enugu main branch.
(d) To make recommendations on how these challenges can be eliminated or solved to enhance productivity.
1.4 THEORETICAL FOUNDATION OF THE STUDY
This study will be using empowerment theory of leadership as a theoretical foundation or framework. The empowerment theory was propounded by Kanter (1993). Kanter sees the empowerment theory of leadership as closely aligned with this thrust to gain organizational effectiveness through wise utilization of human resources, Kanter (1993) was of the view that empowered employees are generally more satisfied with their work and would perform very high in the organization thereby promoting productivity of the organization.
The theory of leadership is used to better illustrate the variables and give a more compelling view of the variables. The concept of leadership has been widely researched due to its relevance to organizational survival which is why Nirenberg (2010) viewed leadership as a special tool required for the attainment of organizational goals and objectives. This definition emphasized leadership to encompass the actions and attitude of the leader(s) with respect to his/her subordinates. Leadership is inspiration that drives positive outcome. The whole essence of leadership can be deduced to consist given others the opportunity to lead and grow and ensuring that right attitude and building commitment to organizational goals and objectives. More so, leadership should inspire creativity, and development of inherent skills thereby empowering employees towards future leadership positions, Kanter and Kanter (1993).
Furthermore, According to Ejikeme and Godwin (2015), the empowerment theory of leadership is simply focused on a leadership style that inspires employees by encouraging them to take decisions and actions that affect the existence of the organization. The theory however suggest that leaders should aside other human relation approach seek to empower employees to take decisions that will enhance their growth and that of the organization. Employee empowerment theory inspires individuals to reach and acknowledge their potential in life and society,Kanter (1993).
1.5 RESEARCH QUESTIONS
The following research questions were formulated to guide the research.
1. How can employees participate in decision making in first bank of Nigeria Plc, Enugu main branch?
2. What are the implications of employee participation in decision making on workers’ productivity in First Bank of Nigeria Plc, Enugu main branch?
3. What are the challenges encountered by employees of First Bank of Nigeria Plc Enugu main branch in participating in decision making of the firm?
4. How can these challenges be solved to enhance productivity?
1.6 SIGNIFICANCE OF THE STUDY
Thesignificance of the study simply means the benefits or contributions that the research is going to make or add to the firm, the employees and the general public or society. These include employee engagement. As one of the benefits of the study, employee engagement according to (Eze, 2014), is the desired outcome that occurs when “workers feel a highlighted” mental and emotional connection to their jobs, managers and co-workers including their organization and its mission. It is a benefit because it will make workers to be more dedicated and more willing to apply voluntary, discretionary effort in their work and above and beyond the norms to help the organization to succeed or grow.
Secondly, to policy makers and management, the research will enable them to understand the importance of employees’ participation in an organization and /or enterprise as employee participation would promote harmony, mutual understanding and efficiency in the organization.
Thirdly, to the employees themselves, it will highlight how important it is to be involved in decision making as it would help to enhance their creative ingenuity, Job satisfaction and increase in morale and as well give them sense of worth in the organization which are prerequisite for organization’s growth or survival.
In addition, this research would be useful to other organizations or institutions as it will enable them to understand the need or the imperative of employee participation in decision making and it will help to explore the employees attitude, emotions, needs, and their perception towards their job and the entire organization which when put into cognizance will help to address the issues of labor-turnover and/or manpower wastage in the organization. Also this research work would serve as a material for other researchers that may like to venture into this line of work as it contains a very-synthesized information necessary or that can be relevant for further study in their related area of interests.
1.7 SCOPE OF THE STUDY
This study examines the employees’ participation in decision making and its implications in organizational productivity with focus on First Bank of Nigeria Plc, Enugu main branch. The result of this study may be applied in other branches of the bank and other financial institutions or commercial banks in Nigeria.
1.8 LIMITATIONS OF THE STUDY
A work of this kind cannot be successfully carried out without constraints, therefore certain factors constitute barriers, impediment to the researchers while attaining to the aims of this research work, among these factors are:
- INADEQUATE OF FUND: Insufficient fund on the side of the researchers was one the constraints that hindered the researchers from studying other financial institutions and/or the entire branches of first Bank of Nigeria Plc hence Enugu main branch of the bank was chosen.
- ATTITUDE OF THE RESPONDENTS: As usual in most research works, the respondents usually feel reluctant in giving out information needed by the researcher(s) either as a result of official secrecy, illiteracy or other reasons known to them and this phenomena has impaired or impeded the ability of the researchers to carry out a holistic work hence some respondents to not respond to the question asked which subjected the researchers or limited them to only the data and information given out by some respondents.
- DEARTH OR SCARCITY OF MATERIALS: Scarcity of relevant materials for the research was another factor that affected the researchers’ ability to carry out a forensic and comprehensive research work in the subject matter, Notwithstanding, the researchers inspite of these limitations or challenges encountered in the process were able to use the materials available from both primary and secondary data source to carry out the research effectively and prudently.
1.9 DEFINITION OF TERMS AND ACRONYMS.
(1) Decision making: it is the selection from among alternative course of an action.
(2) Productivity: This is a measure of how well resources are brought together in an organization and utilized for accomplishing a set of goals.
(3) Organization: A social unit of people that is structured and managed to meet or to pursue a collective goals.
(4) Implications: it means the positive or negative outcome or consequences of an action or practice.
(5) Constraints: It is the factors that limits or hinder something or one’s freedom to do something.
(6) Bank: It a financial institution that receives money from their customers as deposit for safekeeping and also make it available for withdrawal to the same customers.
(7) Participation: Joint consultation in decision making, goal setting, profit sharing, teamwork, and other such measures through which a firm attempts to achieve organization performance.
(8) Acquaint: It means to adapt to a particular trend or situations in the society or an organization at a particular period of time.