EFFECT OF EMPLOYEE PARTICIPATION IN DECISION MAKING ON ORGANIZATIONAL PERFORMANCE
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EFFECT OF EMPLOYEE PARTICIPATION IN DECISION MAKING ON ORGANIZATIONAL PERFORMANCE
CHAPITRE ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Employee participation refers to an employee’s involvement in decision making that is concerned with shared decision making in the workplace [Mitchell, 1973]. Employee participation is defined by [Locke & Schweiger, 1979] as shared decision making between supervisors and subordinates.
According to [Noah, 2008], it is a type of delegation in which the subordinate gains more control and flexibility in terms of bridging the communication gap between management and workers. It refers to the level of employee involvement in the strategic planning activities of the organisation.
Employee participation in decision making can be deep or shallow in a corporation [Barringer & Bleudorn, 1999]. Employee involvement in the planning process results in potential innovation, which may facilitate opportunity and recognition within the organisation [Zivkovic et al, 2009].
Managers allow subordinates to participate in decision making based on their merits, which has been shown by academics to boost organisational performance [Witte, 1980; Sagie & Aycon, 2003].
The benefits of employee participation in an organisation include:
It improves employee morale and productivity [Chang& Lorenzi, 1983].
It allows people to apply their intellectual abilities, which leads to better decisions for the organisation [Williamson, 2008].
Employee involvement promotes trust and a sense of control[Chang& Lorenzi, 1983].
Employee participation reduces the resources necessary to monitor employees, resulting in lower costs [Arthur, 1994; Spreitzes &Mishra, 1999].
Employee participation in an organisation broadens perspectives and increases diversity [Kemelgor, 2002].
There are numerous studies that suggest that increasing employee participation improves organisational performance [Arthur, 1994; Daft & Lewin, 1993; Denninson & Mishra, 1995;
Productivity is a performance metric that includes both efficiency and effectiveness. High-performing and effective organisations have a culture that encourages employee participation.
As a result, employees are more inclined to participate in decision-making processes such as goal setting and problem-solving activities, resulting in higher performance [Hellriegel, Slocum, & Woodman 1998].
Encourage more current participative management styles to increase employee productivity and happiness even with low pay rates [Madison, Wisconsin, 2000].
Job satisfaction boosts productivity by providing high-quality motivation and enhancing working capabilities during implementation [Miller & Mange, 1986]. These are the evidences indicating a participatory work environment has a greater impact on worker productivity.
Every organisation strives to develop and raise its level of performance by giving learning opportunities to its employees (Weiss et al., 1998). Organisations must perform at the individual level in order to increase overall organisational performance. To obtain an overall performance level, all organisational subdivisions must perform well (Ward, 2007).
Organisations all over the world have developed several procedures to increase performance levels ranging from functional to employee to organisational to boost overall organisational performance. Organisations must also control the performance of their personnel and functions by creating and attaining goals (Good et al., 2004).
According to Dess and Robinson (1984), boosting employee engagement can increase organisational performance, and management must have specific methods to improve employee participation in that sector. According to Wheelen and Hunger (1998), an organization’s degree of performance is determined by its objectives and goals.
The primary goal of any corporation operating in the market is to maximise profits while minimising expenses. Organisations can increase profits and cut costs by increasing employee participation (Sorenson, 2002). According to Lee et al. (2004), the level of progress and engagement varies by company.
Many organisations give authority and power to their employees, and as a result, organisational performance improves. An organisation that empowers its employees to make decisions improves their own talents. Employees are also involved in decision making and other organisational decisions in high-performing organisations.
According to Rashid et al. (2003), organisations require higher return on their contribution and financial rewards on all expenses incurred. According to Ho et al., (2006), organisations require diverse analyses to determine their profitability, and this demonstrates that organisation profitability may be raised when an organization’s performance level rises.
1.2 STATEMENT OF THE PROBLEM
Employee engagement demonstrates that each employee is a unique individual, not just a cog in a machine, and that each employee is committed to helping the company achieve its goals. The organisation requests and values each employee’s participation.
Workers and management recognise that each employee contributes to the success of the company (Apostolou, 2000). Employee participation is a technique that allows employees to participate in decision-making based on their position in the organisation.
Employee engagement can thus be viewed as a catch-all term for a variety of practises that may or may not serve diverse goals. To capture the full picture of employee participation, any investigation of ’employee participation’ must include terms as diverse as industrial democracy, cooperatives, employee share schemes, employee involvement,
human resource management (HRM) and high-commitment work practises, collective bargaining, employee empowerment, team working, and partnership. The researcher, on the other hand, would look at the impact of employee participation on organisational performance.
1.3 OBJECTIVES OF THE STUDY
The overall goal of this study is to investigate the impact of employee participation on organisational success, with the following specific goals:
To investigate the impact of employee involvement on organisational performance.
To investigate approaches for implementing an effective employee engagement initiative in an organisation.
To identify the difficulties connected with employee participation.
1.4 RESEARCH QUESTIONS
What effects does employee participation have on organisational performance?
What are the approaches/methods for implementing an effective employee involvement programme in an organisation?
What are the obstacles to employee participation in an organisation?
HYPOTHESIS 1.5
Employee participation has no substantial association with organisational performance.
Employee participation and organisational performance have a significant relationship.
1.6 SIGNIFICANCE OF THE STUDY
This study will serve as a guide for corporate business organisation management and administrators in creating an effective employee participation plan to enhance employee involvement in decision making.
Employees will contribute intellectually to enhanced organisational success by doing so. The findings of this research effort will also serve as a reference for academic endeavours for instructors and students,
as well as for the general public who wish to learn about the benefits and drawbacks (if any) of employee participation and its impact on organisational success.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
The scope of this study on the influence of employee participation on organisational performance will address the process of employee involvement in decision making in an organisation, as well as the benefits that flow to it.
1.8 DEFINITION OF TERMS
Organisation: A social unit of individuals that is established and managed in order to address a need or achieve common goals.
Participation: Joint consultation in decision making, goal planning, profit sharing, teamwork, and other similar methods used by a company to improve organisational success.
Performance: The completion of a given work as judged against known predefined standards of correctness, completeness, cost, and speed. In a contract, performance is defined as the fulfilment of an obligation in such a way that the performer is released from all liabilities under the contract.
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