RELATIONSHIP BETWEEN EMPLOYEE PARTICIPATION IN DECISION MAKING AND WORK PERFORMANCE IN THE MANUFACTURING SECTOR
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RELATIONSHIP BETWEEN EMPLOYEE PARTICIPATION IN DECISION MAKING AND WORK PERFORMANCE IN THE MANUFACTURING SECTOR
ABSTRACT
This study looks at the relationship between employee decision-making participation and job performance in Imo State’s manufacturing sector. Data on employee engagement in decision making and performance indicators were collected via questionnaires distributed to 50 manufacturing enterprises.
The survey responses were statistically analysed using chi-square. The study’s findings show a statistically significant relationship between employee involvement in decision making and firm performance, as well as a significant difference in performance between firms whose employees participate in decision making deeply and firms whose employees participate in decision making slowly.
The findings also demonstrate the corporations’ involvement in employee decision-making. The findings of this study suggest that manufacturing organisations must demonstrate a high level of commitment to employee participation in decision making in order to improve performance.
1.1 Introduction
The manufacturing sector in Nigeria has been a focal point, but little is known about the impact of employee participation in decision making on business performance. The manufacturing sector in Nigeria has been a focal point, but little is known about the impact of employee participation in decision making on business performance.
The focus on manufacturing stems from the belief that the sector has the potential to be a modernization tool, a job creator, and a source of beneficial spillover effects (Tybout 2000).
Furthermore, development in manufacturing output has been a critical component in the successful transformation of most economies that have had sustained increases in per capita income (Soderbom and Teal, 2002). The emphasis should consequently be on manufacturing and the elements that may promote its expansion.
A high level of involvement (deep employee involvement in decision making) indicates that all types of employees participate in the planning process. In contrast, a low level of involvement (shallow employee input in decision making) reflects a rather exclusive planning process (Barringer
& Bleudorn, 1999), which exclusively applies to top management. Deep employee involvement in decision making empowers frontline personnel to affect the planning process.
These are the people who are closest to the client and can help new products and services gain recognition, which is an important part of the entrepreneurial process (Li et al., 2006).
This means that employee participation in the planning process for prospective innovations may help to identify opportunities within the organisation (Kemelgor 2002; Zivkovic et al. 2009).
1.2 Statement of the Problem
1. A modern forward-thinking corporation does not keep its personnel in the dark about important decisions that affect them.
2. It trusts them and includes them in all decision-making processes. “Command and control” is no longer an appropriate model. A more open and collaborative framework will maximise the abilities of all employees.
3. The manufacturing sector was selected due to its importance and potential for Nigeria’s economic development.
1.3 PURPOSE OF THE STUDY
1. Employees must be involved if they are to comprehend the importance of innovation and commit to improving their workplace conduct.
2. Employee participation in decision making fosters a sense of belonging among workers while also creating a pleasant environment in which both management and employees willingly contribute to strong industrial relations.
3. Managers must allow a high level of employee involvement in order to develop worker commitment and humanise the workplace, with the goal of boosting work performance and good citizenship conduct.
1.4 Significance of the Study
Workers’ involvement in decision making is viewed as a strategy for motivating employees, resulting in a pleasant work attitude and high productivity. However, academics may question the significance and relevance of employee participation in decision making to business performance.
1.5 RESEARCH QUESTIONS.
1. There is a strong link between employee involvement in decision-making and corporate performance.
2. The lack of employee involvement in decision making has a substantial impact on corporate success.
3. There is a considerable difference in the performance of organisations with strong (deep) employee involvement in decision making vs those with little (shallow) employee involvement.
1.6 Research Hypothesis
Ho: There is no substantial association between employee participation in decision-making and job performance.
Hi: There is a strong link between employee involvement in decision making and job performance.
Ho: Employee participation in decision-making has no substantial effect on job performance.
Hello: Employee participation in decision-making has a substantial impact on job performance.
1.7 SCOPE OF THE STUDY
The example companies were taken from Imo State’s manufacturing firms. Imo State was chosen as the focal point because it is without a doubt Nigeria’s commercial nerve hub, with the most concentrated industry.
1.8 Limitations of the Study
Time constraints hampered the research for this thesis. Despite the available time, some of the non-contracted personnel did not have up-to-date statistics records that would have been valuable in the data analysis. Finally, insufficient research materials and financial constraints impeded the ability to conduct proper research on the subject of this thesis.
Definition of Terms
Participation is regarded as an encroachment on management prerogative.
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